SABMiller deal 'to boost SA economy'

SABMiller deal 'to boost SA economy'

Economist Dawie Roodt believes the deal between AB InBev and SABMiller is a good opportunity for South Africa and is a reflection of the country's ability to operate on an international level. 


In the biggest industry deal ever, AB InBev have agreed to buy SABMiller for some R1.4-trillion. 

SAB Miller, which is a British-South African company had turned down previous offers from the world's largest brewer.

Roodt says the acquisition will be beneficial in the long term.

"I know that there are many people that are concerned that South Africans are selling the family silver. I think that it's totally incorrect to look at it like that.

"The reality is we are a small open economy and that we are participating and competing internationally," he said. 

Roodt says while there are concerns about possible job losses, the situation should turn around.

"I don't think it's the responsibility of companies to create jobs. Their job is to grow their business and as they grow their businesses, they will create jobs in the process as well.

"So, although there could be some changes in employment in South Africa and it could be job losses in the short term, over time it will certainly be good for the economy and it will certainly be good for job creation as well," he said. 

(File photo)

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