The South African Liquor Brand Owners Association (SALBA) welcomed President Cyril Ramaphosa’s address to the nation on Sunday, 30 May 2021. The alcohol industry and its stakeholders share the Government's concern over the pandemic and will continue to support meaningful measures to flatten the curve.
The alcohol industry remains committed to principles of mutual public accountability, evidence-based methods and transparency with data and reporting.
SALBA Chairman Sibani Mngadi said, “We welcome the decision of the Government to focus on restricting social gatherings and the new curfew hours. The decision to keep the alcohol trading environment open under the licence conditions and limitations of the curfew is welcome as taverns, bars, and restaurants are a critical part of the tourism business which we need to assist to recover,” said Mngadi.
The alcohol industry reiterates that it does not support restrictions on alcohol sales while alternative, effective and targeted interventions are available. Restrictions on the legal sale of alcohol are neither an effective nor sustainable measure to reduce pressure on the public health system.
Adherence to health protocols—such as limiting the size and frequency of gatherings, social distancing, hand sanitising and wearing a face mask in public—are still the first line of defence against infection, so the restrictions on numbers at gatherings is welcomed.
The alcohol industry plays an important role as an engine of economic growth in South Africa. Smaller players in the value chain have been particularly vulnerable. We have noted the destructive economic effects of previous bans, which led to R36 billion loss in sales revenue for the industry and R29 billion in tax revenue loss for the. Government, putting at least 200 200 jobs at risk.
In addition, the alcohol industry has documented the extraordinary growth in the illicit alcohol trade as a direct consequence of the alcohol bans – the illicit alcohol trade sales by volume have now overtaken the entire combined wine and cider sectors and have cost the fiscus around R11.3 billion.
CEO of SALBA Kurt Moore added, “The proposed vaccine procurement and rollout targets remain the ultimate solution to restrictions so that the economy can move toward recovery. We are eager to see the Government step up the vaccination programme. The industry has repeatedly said it is willing to provide whatever logistical assistance the Government requires to achieve this huge operational undertaking.”
The alcohol industry is committed to being a trusted partner committed to reducing the harmful use of alcohol, promoting the well-being of South Africans, and playing its role in the economic recovery of the economy. It seeks, in particular, a social compact with the Government, industry, and civil society to promote responsible trading and sensible alcohol consumption.