Assessing socio-economic impacts: the case of 2 SABMiller subsidiaries in Uganda and Honduras

SABMiller is one of the world's largest brewers with brewing interests and distribution agreements across six continents. A recently published independent report (pdf, 20 pages), written by Professor Ethan Kapstein of INSEAD, reveals the socio-economic impact, or footprints, of SABMiller's subsidiaries, Nile Breweries (Uganda) and Cervecería Hondureña (Honduras) in their countries of operation.

The analysis shows that, in 2007, Nile Breweries (NB) and its employees were directly or indirectly responsible for generating value added of US$ 92 million (including US$ 76 million generated by NB itself) and, in the process, the company supported approximately 44,000 jobs throughout the Ugandan economy. For every job directly based at NB, therefore, approximately a hundred farmers and workers depended upon the company for some part of their livelihood.

Cervecería Hondureña (CH), in contrast, generated value added of US$ 405 million (including US$ 389.5 million generated by CH itself). The total impact of CH’s presence, in contrast, generates approximately 100,000 jobs, for a job multiplier of about thirty-three times. This reflects the differences in the structures of each economy and also the intensive use of local agriculture in the Uganda case.

The report analyzes a wide range of other aspects: 

• In which sectors are the jobs generated?
• Where are the companies’ supplies being sourced?
• What are some other economic benefits generated?
• What are some of the broader social and environmental impacts?
• The report also suggests a number of ways in which the companies could be even more supportive of the local economies

More information on the topic of impact assessment

• For a brief overview on the report, see Ethical Corporation's article The cost-benefit analysis of beer
• Access the report: The Socio-Economic Impact of Nile Breweries in Uganda and Cervecería Hondureňa in Honduras (pdf, 20 pages)
• What gets measured gets done - Measuring Impact Framework produced by the World Business Council for Sustainable Development (WBCSD)
• Additional impact assessment cases and reports