PODCAST | Alcohol industry contributes 3.6% to SA’s GDP

The alcohol industry’s contribution to SA's economy is the focus of this edition of Business Day Spotlight. Host Mudiwa Gavaza is joined by Dr Shamal Ramesar, head of research at the Drinks Federation of SA (DF-SA). 

DF-SA is an industry body that brings together producers of beer, wine and spirits. According to a new study by the body, in 2022, the alcohol industry contributed R226.3bn, about 3.6%, to SA’s GDP.

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The alcohol industry sustains 500,000 jobs, generates R215.5bn in household income and influences the livelihoods of 1.15-million people in the country. 

This translates to R96.9bn in tax for the state, 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, DF-SA says. 

Ramesar says alcohol beverage manufacturers make a valuable contribution to the SA economy. 

Through the discussion, he explains how the full alcohol value chain contributes to the economy and employment; opportunities for alcohol producers; tax contributions; growth over time; and efforts to encourage responsible drinking. 

In the process of brewing, distilling and manufacturing various types of alcohol beverages, Ramesar says 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. 

• Business Day Spotlight is a MultimediaLIVE Production.