In a conciliatory move, South African Breweries (SAB) has earmarked R2bn in capital investment for its local operations in 2022, saying it wants to work with other companies, labour unions and the government to rebuild the economy.
SAB's announcement this week came after the group said it had concluded its annual business planning cycle, with vice-president of corporate affairs Zoleka Lisa adding in an interview that this latest investment allocation did not form part of the R5bn in investments the group had cancelled last year and earlier this year due to the impact of bans on alcohol sales.
The move comes just over a month after SAB, which is owned by liquor giant AB InBev, told Business Times that it would be willing to review its decision to put a hold on investments if the government provided long-term policy certainty and committed to no further liquor bans in any future lockdowns.
This week Lisa said: "Every year we have a business planning process and effectively through that process we then plan for our next year. So what we are talking about is the investment for 2022."
The decisions to cancel R2.5bn in planned investments in 2020 and a further R2.5bn earlier this year were also made after the conclusion of SAB's annual business planning cycles. Those investments remain cancelled.
"This [new allocation] is now future investment for capex projects for 2022 to be completed."
We see our value chain being an engine of economic growth
Asked if this could be seen as the group extending an olive branch to the government, Lisa said: "It's more than an olive branch. Beyond just extending the olive branch it's really saying we fundamentally see our value chain being an engine of economic growth.
"We've got farmers, we've got retailers in our value chain and we support the township economy. There are many families that are linked to us and people who are reliant on a massive value chain.
"We are taking it upon ourselves to say we [the government and SAB] may see things differently, but we have to work together for the betterment of this country.
"We are open to talk any time and now it is about building and looking forward. We need to rebuild our economy, big and small business, government and labour and the community. It's time we got together. This financial boost is something the country needs, something our industry needs."
Referring to data from Statistics SA released two weeks ago that showed official unemployment sitting at 32.6%, Lisa said: "If those types of figures don't drive you to do something, I don't know what else will."
The group said in a statement that the R2bn allocation would "include, but is not limited to, upgrades to operating facilities, installation of new equipment at selected plants, product innovations and other necessary operating systems". It would "go a long way in supporting the country's economic recovery".
The investment would also help create jobs and support small and medium enterprises and was an indicator of the group's "long-term commitment to helping grow South Africa".
Lisa said SAB, which employs more than 5,500 people in SA, could not say how many jobs this latest investment would create but that it aimed to preserve jobs as well as create new employment along its various value chains.
Asked if SAB had received any feedback from the government about the R2bn investment, Lisa said it had been "positively received".
The number of people SAB employs in SA
— 5,500+
She said SAB, along with others on platforms such as Business for South Africa (B4SA), believed a "big lever" for the economy was getting the population vaccinated.
SAB said it had introduced initiatives such as redirecting its marketing funds to "amplifying information" about registering the over-60s for vaccination. "We are now deploying our sales force to be people on the ground specifically to support the vaccination programmes. As a business, we are engaging on multiple levels and right now we are focusing on vaccination and ramping it up."
In the statement, Lisa said SAB was "encouraged by the recent announcement" by President Cyril Ramaphosa moving SA to level 2 lockdown by introducing measures that still "allow the economy to operate".
While Ramaphosa tightened restrictions around gatherings and the curfew, no ban on alcohol sales was introduced. The government banned alcohol sales on three occasions last year and early this year.
In the same statement, Richard Rivett-Carnac, vice-president of finance and legal, said: "The move to implement reasonable measures, as we continue to navigate the pandemic, is a welcome signal 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."
SAB is still pursuing legal action in the Western Cape High Court against the government in a bid to get a ruling on the constitutionality of alcohol bans.
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