South African Breweries (SAB) and Isanti Glass, South Africa’s first majority black-owned glass container manufacturer, commemorated their successful three-year partnership.
The collaboration marks a significant step towards achieving the country’s transformational goals and promoting localisation.
SAB has entered into a 10-year offtake agreement with Isanti Glass, ensuring that SAB will purchase any unsold products from Isanti. This strategic arrangement guarantees a stable market and revenue stream for Isanti’s future output.
The partnership between SAB and Isanti Glass has resulted in the creation of South Africa’s first majority black-owned glass manufacturer. It exemplifies SAB’s commitment to government objectives and its dedication to converting existing suppliers to support transformation initiatives.
This collaboration sends a powerful message about the importance of localisation and its wide-ranging impact. By partnering with Isanti Glass, SAB is actively promoting the involvement of small players, particularly black-owned businesses, in the industry and fostering job creation.
Deputy Minister of the Department of Trade, Industry and Competition (DTIC), Fikile Majola, emphasised the significance of this milestone. Majola stated, “This acquisition and transaction between SAB and Isanti help broaden black participation. It serves as an excellent example of how black empowerment should be pursued. SAB’s 10-year offtake agreement ensures the success of Isanti, which is crucial for Black Economic Empowerment (BEE) and participation in our economy. We consistently emphasise that the economy cannot grow if it remains concentrated. We need to deconcentrate the economy spatially and encourage participation from different national groups, especially those previously disadvantaged.”
Isanti Glass is currently in the process of securing a fourth furnace to increase glass production. As South Africa heavily relies on glass imports, this expansion project will help bridge the gap and alleviate concerns about the rand/dollar exchange rate for local glass buyers.
Chairman of Isanti Glass, Shakes Matiwaza, highlighted the importance of local glass production. He explained, “South Africa is a net importer of glass, especially container glass. Given our rand/dollar exchange rate, it is vital to procure glass locally for our customers. As long as we continue importing glass, there will be a demand for locally produced glass. Moreover, local production creates employment opportunities.”
The partnership between SAB and Isanti Glass serves as a model for promoting localisation, supporting black-owned businesses, and ensuring sustainable economic growth. It represents a significant achievement in South Africa’s journey toward economic transformation and empowerment.
