Beer sector’s impact on employment rate
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.