Measuring the impact of SABMiller in sub-Saharan Africa

Published

12 February, 2013

Type

Case Study

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Investment from multinational companies, their tax contributions and the broader economic value that they generate is important for economies in developing countries – to create jobs, provide funding for infrastructure improvements and support a wide range of businesses up and down the value chain.

In order to better understand their impact, SABMiller commissioned an independent academic report by Professor Ethan Kapstein of INSEAD. He looked at the role that SABMiller’s businesses play in sub-Saharan Africa (excluding South Africa).

The objective of this study was to quantify the company’s socio-economic impacts in order to enable management, government and other stakeholders to:

An economic model that makes use of input-output analysis was therefore developed. Input-Output analysis considers inter-industry relations in an economy, depicting how the output of one industry flows toward another industry where it serves as an input. By examining a country’s input-output table, analysts gain a clearer idea of what resources are being used for what purposes, and how much value added is generated through the production of goods and services.

The Social Accounting Matrix (or SAM) that is related to the Input-Output tables, in turn, examines the national accounts in a more disaggregated fashion to determine how incomes and employment are distributed among different industries, regions, social groups, and households. The SAM represents flows of all economic transactions that take place within the economy studied. It is a statistical and static representation of the economic and social structure.

Some of the key findings include: