Reflect. Recognise. Reignite: the case for a smarter beer policy in SA

SOUTH Africa’s beer industry is more than just a source of refreshment — it’s an economic powerhouse woven into the cultural and economic fabric of our country.

- CHARLENE LOUW

In 2023 alone, it contributed R96.4 billion to GDP, generated RS6.S5bn in tax revenue, and supported over 210000 jobs, according to Oxford Economics’ “Beer's Global Economic Footprint” study.

As the Beer Association of South Africa (Basa), our mandate is to protect and promote this industry and the livelihoods it sustains.

But we cannot do so without fair and forward-looking regulation — particularly when it comes to excise tax policy, which has reached an unsustainable tipping point.

Reflect: brewing under pressure

Despite its contributions, the beer industry is under increasing strain. In the 2025/26 National Budget, excise tax on alcohol was raised by 6.75%, continuing a pattern of above-inflation hikes.

While large players may be able to absorb some of the blow, many small and craft brewers cannot — resulting in closures, job losses, and declining sector diversity.

Currently, excise and VAT together account for up to 40% of the price of a 340ml beer — exceeding the average brewer's operating costs.

For township taverns and community brewers — often micro-entrepreneurs — this is unsustainable. These are not just businesses, they are lifelines in economically marginalised communities.

Adding fuel to the fire, several provinces have introduced steep increases in licensing fees across manufacturing and retail categories.