Durban — The South African Breweries (SAB) and the Beer Association of South Africa (Basa) have appealed for a seat at the table of the government in order to assist in growing the economy.
The SAB and Basa held a State of the Beer Economy Address on Monday in Newlands, Cape Town, where both presented their report titled “The economic impact of the beer sector in South Africa”.
In order to create a friendly business environment and stimulate the economy, both the SAB and Basa urged the government not to exclude the beer sector from key decision-making processes that directly impact the economy.
Basa chief executive Patricia Pillay said that the beer industry was not a ‘sin’ business but one of the significant contributors to the country’s economy, as thousands of people benefited financially from the beer sector.
“The government needs to stop handing out the fish and start teaching people how to fish. We need to teach people how to stand on their own and create economic streams for themselves.
“If we continue with policies that are unfriendly to business, we will be unable to root out poverty. Business needs certainty and assurance that we can have a seat at the table and when decisions are made, we must be properly consulted,” Pillay said.
Pillay added that when the association met with people in the rural areas, the people indicated that when they were stressed, bored, or upset, they abused alcohol because they had no other things to do, stressing that there was a need for Basa and the government to work together to introduce programmes aimed at reducing alcohol intake and provide dignity to the people.
“When we give people dignity by providing jobs, we will be able to fight poverty together and change lives for the better.
Dr Azar Jammine, the chief economist of Econometrix, said that the beer industry is very attractive and highly capitalised.
“The government’s plan appears to be to introduce even more social grants than currently exists. At present, around half the country’s population survives on grants, including those that were introduced during the height of the Covid-19 pandemic.
“The magnitude of the contribution made by the beer industry alone would not be enough to sustain grants. The country needs to grow its economy, invest in infrastructure, and create a business-friendly environment in order to encourage investors and create jobs.
Jammine felt that the government should continue providing social grants. However, he warned that any additional grants would require at least 25% of the GDP to be directed to grants which are unsustainable.
A research study compiled by Oxford Economics Africa Director Cobus Hart showed that beer made a value-added contribution to gross domestic product (GDP) of R71 billion in 2019 or 1.3% of GDP and that 249 000, or about one job in 66, were supported by the industry in one form or another. The sector also contributed some R43bn in taxes to the government in 2019.
Daily News