Lockdown in SA: Alcohol industry bemoans possible restrictions

With speculation rife that President Cyril Ramaphosa is expected to soon announce tighter lockdown restrictions, the alcohol industry has expressed concern over another possible ban.

It has been reported that Ramaphosa will hold more engagements on the country’s COVID-19 strategy ahead of the Easter weekend.

Reports have suggested that the sale of alcohol could be limited to Monday until Thursday, under the tighter lockdown restrictions. However the industry says there is no reason to justify another alcohol ban, which has led to a loss of at least R36 billion in revenue since the lockdown in March 2020.

“The only outcomes the country can expect from the decisions to increase gatherings and ban alcohol sales is the hastening of the onset of the third wave of Covid-19 pandemic while further collapsing the struggling economy,” SA Liquor Brandowners Association (SALBA) chairperson Sibani Mngadi has said.

“Job losses as a result of these unjustified bans are exceptionally damaging to society and the economy”

SALBA: Another alcohol ban will affect the GDP

SALBA has further taken issue with the argument that booze alone is the contributor to a rise in trauma cases at our country’s hospitals.

“While it is undeniable that some people have an unhealthy relationship with alcohol that could lead to harmful behaviour, to single out alcohol as the root of all trauma is wrong. Weighed against the evidence, the negative impact of a further blanket ban on alcohol seems unjustifiable,” it said.

The industry is worried about a total ban and has said government would essentially be going against much needed advice, should it forge ahead with the prohibition.

“If the reports are true, the government will be going directly against Nedlac proposals by yet again shutting down the alcohol sector impacting on its R173 billion contribution to the GDP of the country,”Mngadi added.

Under the current Lockdown Level 1 restrictions, alcohol is sold throughout the week – with the exception of curfew, which is 00:00 until 04:00. The alcohol industry has managed to slightly recover the past several bans which have been implemented since the first lockdown was put in place.

With the first two bans, alcohol excise tax contribution to government declined by more than 28% from R47 billion in 2019/20 to R34 billion in 2020/21.