Johannesburg – The South African Breweries (SAB) said today it would invest R2 billion in its domestic operations, in a move seen as a vote of confidence in the local economy.
The company in a statement said the capital investment will see it upgrade its operating facilities and buying of new equipment amongst other expenditure items at selected plants, product innovations and other necessary operating systems.
This much-needed R2 billion capital injection is earmarked for projects to be completed in the financial year 2022.
Zoleka Lisa, VP Corporate Affairs at SAB, said 95% of the company’s products are sourced and produced locally.
“We are encouraged by the recent announcement by the President on making the move to level 2 lockdown, introducing measures that still allow the economy to operate. The announcement also emphasised the importance of a successful vaccination programme rollout, prioritizing the most vulnerable in society” says Lisa.
Richard Rivett-Carnac from SAB’s legal department said, “The move to implement reasonable measures, as we continue to navigate the pandemic, is a welcomed signal that we can expect to see more consultation in the future and that blanket bans will be a thing of the past. Further collaboration will provide the required confidence boost needed in order to attract further investment to the country.”
The investment by SAB comes after the company in January cancelled R2.5bn of investment following the third ban on alcohol sales in December which had been extended indefinitely.
Heineken, which had also halted investments in South Africa following bans on the sale of liquor last month also had a change of heart when it said it was in talks to buy drinks producer Distell, its main cider competitor and the country’s largest producer.
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