Times of Eswatini

Beer sector’s impact on employment rate

- BY TIMES REPORTER

MBABANE - About 3 233 jobs were maintained in 2019 in Eswatini through the beer sector.

This constitute­d 1.1 per cent of the national employment rate or alternativ­ely equivalent to about 12 per cent of hired people in the capital city, Mbabane.

A study by Oxford Economics on Eswatini beer’s economic impact, shows that there are 200 people in direct employment by Eswatini Beverages Limited (EBL) while 1 520 are indirectly employed through the downstream value chain. Meanwhile, about 1 044 are benefittin­g through induced jobs.

“The local beer sector contribute­s to Eswatini’s economy through its domestic and internatio­nal operations, and its worldwide supply chain,” the report reads in part.

Mpumelelo Makhubu, Head of Legal and Corporate Affairs at EBL, explained that the downstream value chain consisted of, among others, employment in bars, bottle stores, catering, cleaning and security services.

Tourism

“Beer supports tourism, the entertainm­ent industry and so many other industries. We also have the upstream value chain, which includes the farmers who grow our natural ingredient­s and the logistics sector that delivers our manufactur­ing inputs, to name a few,” Makhubu stated.

He added; “Beer is inclusive, natural and local. Inclusive because from the farmers, customers and suppliers to consumers, we strive to improve livelihood­s and increase access to quality growth opportunit­ies across our value chain.”

Makhubu said beer was natural in that EBL’s business existed in nature.

“We design our products with simple ingredient­s and nature-based solutions.”

He said beer was inclusive, in that it championed local developmen­t and focused on strengthen­ing the economies and communitie­s, in which EBL operated.

Makhubu said this was an indication of how beer contribute­d positively to emaSwati’s lives and their dependants.

“Our major goal now is to reduce the harmful use of alcohol in society, and we know that this can be achieved with effective partnershi­ps with the

GROSS VALUE ADDED (GVA) IMPACT

various stakeholde­rs, including govern- ment,” he added

Minister of Com- merce, Industry and

Trade Manqoba

Khumalo, noted that the beer industry in

Eswatini continued to grow and was clearly a significan­t part of the economy.

He further observed that the industry’s resilience through the COVID-19 pandemic was evident.

“Government, through the ministry, is currently amending the Liquor Licences Act of 1964, to ensure that the industry operates in an environmen­t that is aligned with best practices, fosters responsibl­e consumptio­n and defines rules that will support equitable participat­ion of emaSwati businesspe­ople as the industry grows,” he said.

Khumalo said he was grateful for the partnershi­p between the ministry and EBL, to digitise and modernise licensing in the liquor industry.

“It is important that all stakeholde­rs continue working together to ensure that social ills associated with this industry are minimised as it grows.

This can only be achieved if the industry invests in awareness, education and support systems

IMPACT DIRECT INDIRECT INDUCED TOTAL

BREWERS E270m E333m E223.2m E826.2m at the grassroots level,” said Minister Khumalo.

Meanwhile, the Oxford Economics study further mentions that in 2019, the local beer sector supported E970.2 million gross value added (GVA) contributi­on to Eswatini’s Gross Domestic Product (GDP) in a year.

Of the E970.2 million, E826.2 million came from EBL and E144 million from the downstream value chain.

DOWNSTREAM VALUE CHAIN E50.4m

E46.8m

E46.8m

E144m

TOTAL E320.4m E379.8m E268.2m E970.2m

Revenues

About E450 million was in the form of tax revenues, translatin­g to two per cent of government’s total revenue.

A breakdown of the generated revenue shows that the largest chunk of E338.4 million came from beer sales tax, E95.4 million from brewers and E18 million from the downstream value chain.

Unemployme­nt rate in Eswatini is expected to reach 26 per cent by the end of 2022, according to Trading Economics global macro models and analysts’ expectatio­ns.

Based on the Worldomete­r elaboratio­n of the latest United Nations (UN) data, the current population of Eswatini is estimated at 1 188 144.

 ?? ?? Eswatini Beverages Head of Legal and Corporate Affairs Mphumelelo Makhubu.
Eswatini Beverages Head of Legal and Corporate Affairs Mphumelelo Makhubu.
 ?? (File pics) ?? Ministerof­Commerce,Industryan­dTrade Manqoba Khumalo.
(File pics) Ministerof­Commerce,Industryan­dTrade Manqoba Khumalo.

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