jobs job Cyril Ramaphosa hails teachers

Photo: GCIS / Flickr

What to expect tonight with the President’s address to the nation

The hospitality, liquor industry, and other businesses have called for a lift of the current restriction. Will that be the case? Here is what to expect tonight.

jobs job Cyril Ramaphosa hails teachers

Photo: GCIS / Flickr

President Cyril Ramaphosa is expected to announce relief for the hospitality industry and other businesses tonight by easing lockdown restrictions for South Africa.

Ramaphosa will be addressing the nation on Sunday evening at 8pm.

The updated restrictions are expected to include:

  • Increase the number of people allowed at outdoor venues from 100 to 250, and from 50 to 100 for indoor venues;
  • The curfew is expected to be pushed back to between 23h00 and 04h00;
  • Fewer restrictions on the sale of alcohol.

The president is also expected to outline the government’s plans to introduce a Covid-19 vaccine passport as part of a push to achieve herd immunity in the country.

Earlier this week, the South African liquor industry has warned in a recent statement that continued alcohol restrictions will lead to thousands of job losses.

The Consumer Goods Council of South Africa (CGCSA) and the Liquor Traders Association of South Africa (LTASA) recently commissioned research on the impact of COVID-19 Regulations on the Liquor Industry, particularly the off-site consumption liquor sector.

The research concluded that the four-day trade restrictions imposed on retail liquor stores are unjustifiable, discriminatory and uncompetitive.

The restrictions have also fuelled the illicit market with significant revenue losses for the government.

ALSO READ: Warning over further alcohol restrictions for South Africa

According to the study, liquor retailers have been losing about 50% of revenue they would have earned from Thursday to Saturday, yet overhead costs have remained unchanged. The revenue losses for small liquor outlets were as high as 65% of weekly turnover between Friday and Sunday.

“To put this in perspective, aggregate loss in sales since the inception of lockdown stands at approximately R8.5 billion; sales volume has dropped by 20%-50% across the retail formats per month and with 60% of convenience trading being done mostly post 5 pm on weekdays and on weekends these figures are predicted to continue on a downward scale with great harm to business and jobs.”

It furthermore said in addition to cutting staff and costs, retailers have been negotiating with landlords to reduce rentals, which in turn affects the revenue of commercial property owners.

CGCSA warns that the longer the government continues to restrict the off-site consumption and the more it imposes restrictions on the alcohol industry and value chain, the higher the probability that illegal trade will become further institutionalised, whilst many licensed liquor traders will face bankruptcy as they continue to lose a significant portion (three days) of their weekly revenue.