Heineken has announced that it will invest more than ZAR 15.5 billion (approx. $852.8 million) into the South African market through a series of projects.
At this year’s South Africa Investment Conference, Heineken Beverages announced a programme of investment that will take place over the next five years. This includes a ZAR 3.8 billion (approx. $165 million) investment in constructing a new greenfield brewery. In addition, Heineken will invest ZAR 1.7 billion (approx. $93.5 million) into a new maltery.
Heineken announced it would acquire control of Distell and Namibia Breweries in 2021, which were to be combined with Heineken South Africa to form a new Heineken majority-owned business. The Competition Tribunal approved the deal earlier this year, bringing the formation of Heineken’s new regional African beverage brand, Heineken Beverages, to fruition.
The remaining ZAR 10 billion (approx. $550.5 million) will be used for capital expenditure projects to expand and maintain existing operations in South Africa.
Heineken To Invest Over ZAR N15.5 Billion In South African Economy
Heineken South Africa managing director, Jordi Borrut, said: “This investment underscores our continued belief in the development and sustainability of South Africa. The 2023 SA Investment Conference is an incredible showcase of how private sector investment can help to transform a country and its economy.”
He added: “We are honoured to take part in this journey and invest further into South Africa – alongside the region as a whole. We fully support the conference’s overall goals of socioeconomic development, creating sustainable jobs, reducing poverty and driving back inequality.”
The company also provided an update on plans announced at the conference in 2019 to construct a 6.5 MW solar power plant at its Sedibeng brewery. According to Heineken, the plant is the largest freestanding solar plant powering a brewery in South Africa.