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Lifting the alcohol ban no ‘quick fix’ for the sector – SALBA
The South African liquor industry has said that the lifting of the alcohol ban comes a little too late for small businesses who were affected by the COVID-19 pandemic
Photo: Unsplash
While the South African liquor industry has welcomed the lifting the alcohol ban, it has also warned that the already devastating economic impact on the sector will not be resolved overnight.
President Cyril Ramaphosa announced on Monday, 1 February 2021, that the country would stay on Alert Level 3 of the lockdown, however the sale of alcohol would be permitted – a move which is a relief for the industry. Alcohol can now be sold from Monday to Thursday from 10:00 to 18:00.
However, the alcohol industry has said it will not easily recover from the ban, having already had to shed 165 000 jobs.
Alcohol ban had the industry ‘on its knees’
The South African Liquor Brandowners Association (SALBA) has called on government to work with the sector as it navigates the damage caused by the ban.
“As an industry, we welcome the President’s decision to ease the restrictions on alcohol sales for on and offsite consumption and are extremely relieved that partial areas of alcohol sales are to be opened up again,” CEO Kurt Moore said.
“However, after this six-week ban that has left the industry on its knees, this development is no quick fix for our longterm economic survival. We call on Government to work together with us to find a workable solution going forward that protects lives, while preserving the livelihoods of around one million people who rely on some form of income from this sector.”
SALBA CEO Kurt Moore
Government has maintained that the ban on alcohol was necessary to ease pressure off the health system.
The ban, which is the third since the country went into lockdown in March 2020. According to the sector, the last prohibition on alcohol sales decimated the industry and threatened its long-term survival.
The industry has calculated that the decrease in excise tax contribution to the fiscus has declined more than 28% from R47 billion in 2019/20 to R34 billion in 2020/21. It added that the R13 billion loss in alcohol tax revenue could have covered the investment needed in the procurement of vaccines and other measures needed to curb the impact of COVID-19.
The alcohol sector has also pledged its commitment to strongly support measures to reduce the spread of coronavirus infections and adopt the Government’s COVID-19 regulations.
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