Beer giants pledge N$21,3 billion of new investment

Heineken and South African Breweries (SAB), the two leading beer groups operating in South Africa, last Friday announced a whopping N$21,3 billion of new investment projects over the next five years.

Earlier this year, Heineken finalised the acquisition of Distell and Namibia Breweries, which were to be combined with Heineken South Africa into a new Heineken majority-owned business, Heineken Beverages.

On Friday at the 2023 South Africa Investment Conference (Saic), Heineken Beverages announced a N$15,5-billion investment over five years, including a N$3,8-billion investment for a new greenfield brewery, and a N$1,7-billion investment into a maltery.

The remaining N$10-billion investment would be used for capital expenditure projects to expand and maintain existing operations in South Africa, Heineken SA managing director Jordi Borr said in a statement.

In 2019, Heineken South Africa announced a N$1,6-billion local investment earmarked for several projects, most notably the extension of its brewery at Sedibeng, and the construction of a 6,5 megawatt solar power plant.

Also at the SA Investment Conference, SAB committed N$5,8 billion to the South African economy in 2023.

Some N$2,4 billion would be allocated to new developments supporting growth and cost initiatives, including a N$555 million expansion of the Ibhayi Brewery.

About N$3,4 billion would be allocated to sustain SAB’s operations and infrastructure.

SAB chief executive Richard Rivett-Carnac said: “Through knock-on and multiplier effects, our N$5,8 billion investment is anticipated to contribute billions to gross domestic product (GDP), which, alongside the other investment commitments at the 2023 Saic, will provide a significant boost to an economy sorely in need of stimulus.”

SAB’s N$5,8-billion investment commitment follows its N$4,5-billion commitment in 2022, which included a N$925-million investment into its Prospecton Brewery, and N$510 million into Ibhayi Brewery.

– IOL News