By Zoleka Lisa, Vice President: Corporate Affairs, South African Breweries
As we commemorate Africa Month, it’s imperative to recognise the pivotal role of the beer industry in propelling the continent’s economic growth, particularly through initiatives like the African Continental Free Trade Area (AfCFTA). Amidst global economic challenges, Africa stands resilient, poised to outperform established economies and offering a promise of renewed economic growth. The African Development Bank expects the region to grow by 3.8% this year, surpassing the global average, and with 11 of the world’s 20 fastest-growing economies being African.
The continent has a youthful and dynamic population that is actively taking a role in shaping the future. Technology has empowered the continent to leapfrog historical barriers, bring families closer together, promote financial inclusion and empower individuals and businesses. It has also led to the rise of “startup capitals” in cities such as Lagos, Nairobi, Cape Town and Cairo. In the face of adversity, Africa’s youthful population, technological advancements, and strategic policy frameworks like AfCFTA are paving the way for sustainable development and inclusive growth.
From a multilateral perspective, the African Union developed the AfCFTA to help meet Agenda 2063’s vision for a prosperous and inclusive continent. The AfCFTA is a key foundational policy that lays the path towards a more connected and thriving Africa. It aims to achieve this by promoting industrial development through diversification, regional value chain integration, and agricultural expansion to ensure food security whilst boosting intra-African trade. Bringing the AfCFTA to life may seem like a Herculean task; nevertheless, what is encouraging is that of the 54 countries that have signed up for the agreement, 47 have ratified it. By working together, both public and private sectors, there is enough collective strength to successfully implement the trade agreement.
The beer industry stands as a stalwart in Africa’s economic landscape, injecting billions into the GDP and sustaining millions of livelihoods from ‘seed to sip’ and beyond. The beer sector’s commitment to local sourcing and inclusive growth resonates with the ethos of AfCFTA. With nearly 3 million people benefiting from beer operations on the continent and contributing $14 billion to the continent’s GDP, the beer industry exemplifies the potential of private sector-led development. In South Africa alone, the sector supports 1 in 66 national jobs, totalling 249,000 jobs. The sector is dedicated to building resilient, long-term value chains that bolster agriculture in Africa, reduce import reliance, and foster manufacturing growth. It also has an ambitious agenda to increase the number of raw materials sourced from local farmers and to boost local processing and value-added activities. This will further enhance investment and job creation on the continent – a vision that we firmly believe in and are practising at the South African Breweries (SAB) and our parent company, AB InBev.
At the heart of the beer industry’s success lies its dedication to local sourcing and community empowerment. One of the many things we are proud of is that we make products that are local, inclusive, and natural. Our philosophy is anchored on the belief that local sourcing is key to stimulating sustainable and inclusive growth in the economies in which we operate. Through local crop initiatives across Africa, in countries such as Uganda, Tanzania, Zambia, and Botswana, the brewing industry is expanding opportunities for farmers and enhancing agricultural value chains. By integrating traditional (sorghum and cassava) and high-value complex crops (barley and maize), these initiatives not only foster economic resilience but also promote food security and sustainable cultivation practices.
As Africa embraces the promise of AfCFTA, the beer industry emerges as a linchpin for unlocking its full potential. By fostering collaboration between public and private sectors, the industry advocates for improved infrastructure, streamlined trade processes, and support for smallholder farmers. Through enhanced intra-African trade, the beer industry catalyzes job creation, fosters innovation, and uplifts communities across the continent.
As we navigate the complexities of a changing global landscape, Africa’s brewing success story stands as a beacon of hope and progress. I see enormous potential for the brewing industry, working closely with regional stakeholders to tap into AfCFTA’s full potential. By working together as a collective and leaning into our respective strengths, we are able to ensure improved transport infrastructure, security to facilitate in-country and cross-border trade, fast and efficient border controls with unimpeded movement of raw materials and goods, and customs controls that target illicit trade. We can also work on fast-tracking permits for the movement of goods between countries, offer continuous education for farmers to increase yields and improve productivity, and provide access to technology, innovations, and suitable credit. The continent’s firm embrace of the AfCFTA offers an incredible opportunity for leading sectors, such as the beer industry, to help unlock economic growth, create jobs and improve the lives of our people.
As the world experiences subdued economic growth this year, Africa can show her resilience and outperform established global economies by harnessing the transformative power of AfCFTA and leveraging the endurance of Africa’s economies. The beer industry is also playing its part and paving the way for a future defined by sustainable growth, shared prosperity, and unity across the continent. This Africa Month, let us raise our glasses to the pivotal role of the beer industry in driving regional trade integration, economic progress, and the realisation of AfCFTA’s vision for a prosperous and interconnected Africa. Cheers to Africa’s resilience, innovation, and boundless potential!