South African Breweries cancels R2.5bn in investments, as ‘huge job losses’ loom

South African Breweries cancels R2.5bn in investments, as ‘huge job losses’ loom.

South African Breweries (SAB) have confirmed they will be pulling R2.5 billion out of their investment plans for the year ahead – just months after making the same decision to withdraw funding, following the reintroduction of the alcohol ban.

Alcohol was outlawed again at the end of December, in a bid to help ease the burden on South Africa’s overstretched hospitals. SAB have reasoned that longer curfew hours and stricter enforcement of Level 3 rules do enough to help relax the pressure, and they are set to make their arguments against the government in court.

In their official statement, SAB maintains that ‘one million livelihoods’ are now at risk, following this latest round of prohibition – and the financial meltdown it’ll be responsible for.

“South African Breweries (SAB) has cancelled a further R2.5 billion of capital investment following the third alcohol ban. This follows a previous cancellation of R2.5 billion in investments, which was pulled in August 2020. After this third and unexpected ban, we have decided to pull more of our capital expenditure.”

“Given the material impact that this third ban on the sale of alcohol has on our business and the possibility of further bans, we’ve no choice but to halt these investments for the foreseeable future. This decision will impact on the profitability of and the number of jobs created by the companies that would have worked with SAB to execute the capital investment plans.”