Heineken to invest more than $852m in South Africa over next 5 years
By Joseph Ekeng
Heineken, the renowned Dutch brewing company, has announced plans to invest more than $852.8 million in the South African economy over the course of the next five years. The announcement came during this year’s South Africa Investment Conference, where Heineken Beverages unveiled an extensive investment program aimed at bolstering the country’s economic growth.
As part of the program, Heineken will allocate approximately $165 million for the construction of a state-of-the-art greenfield brewery. This new facility will not only enhance Heineken’s production capacity but also contribute to the creation of employment opportunities within the local community. Additionally, the company plans to invest around $93.5 million in the establishment of a cutting-edge malting plant.
These initiatives follow Heineken’s recent acquisition of Distell and Namibia Breweries, two prominent beverage companies in the region. The integration of these acquisitions with Heineken South Africa will give rise to a new majority-owned company known as Heineken Beverages, solidifying the brand’s presence in the African market. The South African Competition Tribunal granted approval for this deal earlier in the year, paving the way for the formation of Heineken Beverages.
Furthermore, a significant portion of the investment, amounting to $550.5 million, will be allocated to capital expenditure projects aimed at expanding and maintaining Heineken’s existing operations throughout South Africa. These initiatives are expected to drive economic growth, stimulate job creation, and contribute to the overall development of the country.
Jordi Borrut, the CEO of Heineken South Africa, expressed the company’s unwavering confidence in South Africa’s sustainable development and emphasized the significance of this investment. Borrut stated, “This investment underscores our continued confidence in South Africa’s development and sustainability. We are honoured to take part in this journey and further invest in South Africa, along with the entire region. We fully support the conference’s overall goals of socioeconomic development, sustainable job creation, poverty reduction, and inequality reduction.”
Heineken’s substantial investment in South Africa reflects the company’s commitment to driving economic progress and fostering long-term partnerships in the region. With its innovative brewing facilities and commitment to social development, Heineken aims to make a lasting impact on South Africa’s economy while creating a more prosperous future for its citizens.
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