Global Courant 2023-04-14 14:15:00
Main image: Clinicadamama.com.br
Dutch beer company Heineken has pledged to invest R15.5 billion in expanding its breweries and beverage production lines in South Africa. The investment was announced at the fifth South African Investment Conference, held at the Sandton Convention Centre. Heineken’s investment is part of a R38.22 billion merger with the Distell group. The merger was cleared by the South African competition authorities, but Heineken had to commit to a cumulative capital expenditure of R10 billion to maintain or increase the production capacity of the merged parties’ current in-house production and manufacturing operations in South Africa, as well as their productive capacity.
Heineken is also due to invest R3.8 billion in the planning, development and construction of a new greenfield brewery in South Africa, as well as R1.7 billion in a new greenfield malting plant. The investments are expected to be realized over a period of five years. The investment was the largest of three made by the country’s food and beverage industry and helped President Cyril Ramaphosa meet his goal of raising R1.2 trillion in investment for the local economy by 2023.
Jordi Borrut, Managing Director of Heineken SA, expressed the company’s confidence in the development and sustainability of South Africa. “We are honored to be part of this journey and continue to invest in South Africa – along with the region as a whole,” he said. “We wholeheartedly support the conference’s overall goals of socio-economic development, job creation, poverty reduction and inequality reduction.”
South African Breweries (SAB) also announced plans to invest R5.8 billion in expanding its brewery facilities across the country. RCL Foods has invested R620 million in its Rainbow Chicken facility in KwaZulu-Natal. These commitments were made among many by the mining, construction, financial services and education sectors during the morning session of the conference.
Heineken’s investment in the South African brewing and beverage sector is expected to create more employment and contribute to the country’s economic growth. The investment also enables Heineken to increase its production capacity and competitive position in the region.
