Eswatini: Economic activity linked to beer contributes 2% of Eswatinis national tax revenue
Eswatinis Minister of Commerce, Industry and Trade Manqoba Khumalo has disclosed that two per cent of national tax revenue collected comes from economic activity linked to beer, the New Observer reported on September 23.
The minister says there is urgency for governments to improve their partnerships and collaboration with the industry in general to positively support economic development.
The minister said this at a side meeting during the ongoing 77th United Nations General Assembly on September 22.
He stated that the beer industry in particular needed to leverage on the call by governments to rise to the occasion and ensure they work collectively for the betterment of countries development and sustainability.
The minister said he was aware of the last World Breweries Alliances (WBA) key findings from a study by Oxford Economics, assessing the economic impact of the countrys beer industry to GDP, jobs, and taxes.
Khumalo said from the statistics, beer does seem to be an inherently formidable engine of economic activity and development. In my country, we were impressed to learn that the beer sector contributed 1.2 per cent of Eswatinis national GDP in 2019, one in every 91 jobs in Eswatini is linked to the economic activity of beer, which is more than 3 200 jobs, translating to over 25 000 livelihoods, he said.
Growth of the beer sector should help soften the economic challenges facing our countries, the minister said. He added that increased volume translates to more jobs and tax revenue for governments and positive value from partnerships as beer companies help the governments, especially on harm reduction.
Khumalo stated that alongside the industrys economic initiatives, there was recognisable growth of the beer industry which must always be coupled with a commitment to ensuring products were marketed and consumed responsibly.
The minister also revealed that the country had also worked on another initiative with regards to safeguarding water as part of its business growth planning.
Earlier this year, they launched a water project that provides clean water to the community benefitting 640 people from 77 households and we look forward to more partnerships, not just with EBL, but other players in the beer industry in Eswatini, he said.
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