Drinks Federation of SA launches report on the alcohol industry's role in the SA's economy

Source: www.drinksfederationsa.co.za

The report highlights the alcohol industry’s significant role in advancing the nation's economic development through tax contributions and support for livelihoods.

It seeks to raise awareness of the industry's value chain and its overall impact, while also encouraging dialogue and collaboration among stakeholders, industry peers, and government regulators.

Economic contribution

The research study reveals that in 2022, the alcohol industry contributed R226,3bn, or 3.6%, to South Africa’s GDP.

The alcohol industry sustains 498,999 jobs, generates R215,5bn in household income, and positively influences the livelihoods of 1.15 million individuals in South Africa.

This contribution translates to R96.9bn in tax , representing 6.7% of the country’s total tax revenue.

This amount could finance 470,385 teacher positions or the construction of 131,621 affordable housing units.

On publishing the report, Dr. Shamal Ramesar, head of research at DF-SA, stated, “We are thrilled by this study, which marks the start of a series of studies aimed at quantifying the industry’s economic impact. This data will guide the industry’s prioritised actions to address responsible drinking and harm reduction programmes.”

Value-chain contribution

One of the highlights of the report is the ability to bring understanding to the full alcohol value chain.

In the process of brewing, distilling, and manufacturing various types of alcohol beverages, the liquor industry stimulates economic activity through an extensive value chain, encompassing a wide range of producers and suppliers (upstream linkages); distributors, wholesalers, retailers, and the hospitality sector (downstream linkages).

The alcohol value chain therefore supports a range of industries, including agriculture, machinery and packaging, transport, retail, and finance.

Dr. Ramesar concludes, “This report underscores the responsibility that our industry holds in shaping the economic landscape of South Africa. We are committed to being a proactive partner and contributing to a prosperous, just, and safer South Africa, while meaningfully contributing to responsible drinking behaviours and outcomes.”

The report is available for download.