The Oxford Economics has released the findings of a study that assessed the beer industry’s economic impact in South Africa.
The study shows that the beer category has added R71-billion in gross value-added contribution to the gross domestic product (GDP) of South Africa. This includes R43-billion in tax payments to the government.
It further shows that the industry represented R1 in every R79 of South Africa’s GDP in 2019, which is only the tip of the iceberg.
With the high level of unemployment facing the country, the report found that the beer industry has contributed about 248 000 jobs to the economy in 2019. This represented 1.5% of all jobs or one in every 66 jobs in the country.
In Port Elizabeth alone, beer accounted for 67% of total employment.
According to the SAB CEO, Richard Rivett-Carnac, it is the first time in over a decade that there has been such a comprehensive investigation into the South African beer economy.
“One of the key pillars of our strategy is to grow and lead responsibly, and this report highlights the important role that beer plays in the economic growth in South Africa,” said Rivett-Carnac.
“To know that every one in 66 jobs generated in the country is from beer gives me the inspiration to continue growing the beer category in a responsible manner. This is for the same reason we always say beer is local, inclusive, and natural.”
Rivett-Carnac added that the beer contribution to the job market is a feat that involves the cooperation of multiple sectors from agriculture to logistics and manufacturing, retail, and many other sectors.
“The beer value chain is all-encompassing and drives economic activity at almost every level. It was found that tax revenue generated by beer in 2019 was sitting at around R29-billion, which is the equivalent of 2.3% of the national tax base.”
He also believes that the report provides an important marker for the industry and for the country’s economic ambitions. The report estimates that in 2019 alone, South Africa’s four major brewing companies collectively bought R33-billion worth of goods and services from local companies through their supply chains.
“Beer is a very local category. As a result, the jobs and taxes that we are able to generate are all from South Africa. This report encourages us to continue to play a meaningful role in our country’s development.”
The study also notes that the thriving beer sector is one of the key ingredients for global economic recovery.
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