AB InBev commits to working with govt for economic growth

According to the Presidency, the engagement is a follow up with the President about the company’s R4.5 billion investment pledge made at the South Africa Investment Conference earlier this year.

Leading beer manufacturer AB Inbev has committed to working with government to create an enabling environment for economic growth in the country.

This was revealed during a courtesy phone call between President Cyril Ramaphosa and AB InBev and SA Breweries (SAB) CEOs Michel Doukeris and Richard Rivett-Carnac on Wednesday this week.

According to the Presidency, the engagement is a follow up with the President about the company’s R4.5 billion investment pledge made at the South Africa Investment Conference earlier this year.

“The company indicated at the time that R1.9 billion of this investment will go towards returnable packaging which will enable SAB to continue transforming the industry by employing black suppliers such as HTP and Isanti Glass.

“R825 million of this investment will go towards SAB’s Prospecton Brewery in Durban, in KwaZulu-Natal. This investment will provide a projected R3.1 billion additional tax revenue and generate 25 000 jobs through the value chain.

“R510 million will be committed to upgrading SAB’s Ibhayi Brewery in the Eastern Cape,” the Presidency said.

Furthermore, the Presidency said the two industry leaders committed to creating a fertile environment for growth and minimising social harm caused by alocoholic beverages.

“The AB Inbev and SAB leaders outlined to the President their companies’ commitment to create an enabling operating environment that will unlock South Africa’s growth potential and improve the business climate, while reducing the negative impacts of the harmful use of alcohol.

“The executives briefed the President on deliberations within the World Health Organisation and the Organisation for Economic Cooperation and Development on a differentiated approach to dealing with different types of alcohol as part of responding to social ills associated with harmful alcohol use.

“President Ramaphosa welcomed AB Inbev and SAB’s commitment to South Africa and to working with government to fashion a regulatory regime that would facilitate growth in the sector and reduce social harm,” the Presidency said.

(With Inputs from South African Government Press Release)