Ramaphosa ‘obviously concerned’ about SAB divestment, impact on growth

JOHANNESBURG - President Cyril Ramaphosa says he is “obviously concerned” about the effect the alcohol ban could have on his investment drive.

South African Breweries (SAB) announced on Friday that it has cancelled a further R2.5 billion of capital investment following the third blanket ban on alcohol sales.

This brings the brewer’s cancelled capital expenditure in SA since alcohol sales bans were introduced in 2020 to R5 billion.

The cancelled investments for 2021 relate to upgrades to operating facilities, product innovation, operating systems, as well as the installation of new equipment at selected plants.

“This was least expected. What we have sought to do is to save lives in our country and also balance livelihoods and protect those livelihoods.

“I’m hoping that we will be able to have a discussion with South African Breweries and discuss this matter,” Ramaphosa told the political editor Qaanitah Hunter and senior political reporter Carien du Plessis of Fin24’s sister site News24 at the weekend. “South African Breweries is an important corporate in our country, has been so for more than a 100 years. And obviously we are concerned that they have taken this type of decision.” SAB intends to bring an urgent application in the Western Cape High Court to challenge government’s latest blanket alcohol ban as a last resort. Government has not yet indicated whether it will oppose the application.

According to SAB, the alcohol industry continues to support over one million livelihoods throughout its value chain, across farming, retail, manufacturing, logistics and many SMMEs whose incomes are at stake due to the suspension of alcohol trading. – FIN24.