Monday, May 23, 2022
  • Login
Upgrade
The Southern African Times
  • Home
  • Southern Africa
  • Global
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
  • Opinion
  • Sports
  • Lifestyle
    • Health
    • Culture
    • Food and Drink
    • Entertainment
  • SAT Jobs
No Result
View All Result
  • Home
  • Southern Africa
  • Global
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
  • Opinion
  • Sports
  • Lifestyle
    • Health
    • Culture
    • Food and Drink
    • Entertainment
  • SAT Jobs
No Result
View All Result
The Southern African Times
No Result
View All Result
Home Business

Alcohol bans have cost South Africa US44 billion: industry

by SAT Reporter
July 27, 2021
in Business, in Southern Africa, Just In, South Africa
0
Alcohol bans have cost South Africa US44 billion: industry
0
VIEWS

JOHANNESBURG, (The Southern African Times) – The South African Liquor Brandowners Association (Salba) says the relaxation of lockdown restrictions will help some liquor traders, but warned that the last 15 months of bans have come at a significant financial cost to the economy.

South Africa has faced complete alcohol sales bans on four separate occasions since the end of March 2020 as part of the country’s lockdown restrictions.

Salba chief executive Kurt Moore said that the bans have been harmful to both government and business revenue, and are a serious threat to jobs.

“248,759 jobs are still at risk across the industry – about 1.59% of the national total of formal and informal employment for 2020.

“In addition, the alcohol industry lost 161 days of trading between 26 March 2020 to 25 July 2021 due to the government’s alcohol bans.

“Even before the cost of the looting to the alcohol industry is factored in, the four alcohol bans have already cost the country’s GDP an estimated R64.8 billion or 1.3% of GDP,” said Moore.

He said that the industry has repeatedly warned and demonstrated via research that the bans had fuelled illegal activity, particularly among crime syndicates whose positions were significantly strengthened during prohibition.

It will be difficult to reverse this, as syndicates have become entrenched, Moore said.

“Illicit trade has reached 22% of total market volumes in South Africa—worth R20.5 billion in sales value.

“This has cost the fiscus R11.3 billion in tax revenues at a time when the country can least afford it,” said Moore.

Not of the woods

Under the country’s adjusted level 3 lockdown, which came into effect on Monday (26 July), the sale of alcohol from retail outlets for off-site consumption will be permitted between 10h00 and 18h00 from Monday to Thursday.

Alcohol sales for on-site consumption will be permitted as per licence conditions up to 20h00.

Sibani Mngadi, chairperson of Salba, said the partial opening of sales as well as three months deferment in excise tax payments due on alcoholic beverages is a huge relief.

However, he said that the industry is ‘nowhere near being out of the woods’, especially for off-site consumption outlets that continue to be restricted to trading from Monday to Thursday.

“The government’s use of prohibition in response to the Covid-19 pandemic has had devastating consequences.

“There was no justification for the prohibition—implemented with no warning, no consultation and poor empirical justification—that prevented legitimate businesses supporting more than 1,000,000 livelihoods across South Africa from operating.

“These include businesses in the agriculture, tourism, hospitality and manufacturing sectors, and importantly, hundreds of thousands of SMEs.”

Mngadi stressed that legal businesses needed to be allowed to trade without the continual risk of further bans.

Previous Post

Mozambican President confirms presence of Rwandan troops

Next Post

Equatorial Guinea to close embassy in London

SAT Reporter

Related Posts

Meet Mukuru one of Africa’s fastest-growing Fintech firms in 2022
Finance

Meet Mukuru one of Africa’s fastest-growing Fintech firms in 2022

by SAT Reporter
May 23, 2022
West African Startup Autochek Acquires Morocco’s Online Car Market Kifal
African Start ups

West African Startup Autochek Acquires Morocco’s Online Car Market Kifal

by SAT Reporter
May 23, 2022
Biden launches economic framework aimed at countering China
Asia

Biden launches economic framework aimed at countering China

by SAT Reporter
May 23, 2022
African leaders to attend 2022 World Economic Forum in Davos
Business

African leaders to attend 2022 World Economic Forum in Davos

by SAT Reporter
May 23, 2022
Senegal president to visit Moscow, Kyiv for the African Union
International news

Senegal president to visit Moscow, Kyiv for the African Union

by SAT Reporter
May 23, 2022
Next Post
Equatorial Guinea to close embassy in London

Equatorial Guinea to close embassy in London

Premium Content

Botswana government pledges to create conducive environment for businesses

Botswana government pledges to create conducive environment for businesses

December 21, 2020
British and Irish Lions and South Africa Rugby agree to keep 2021 tour as originally scheduled

British and Irish Lions and South Africa Rugby agree to keep 2021 tour as originally scheduled

March 23, 2021
African female entrepreneurs tackling climate change challenges and much more

African female entrepreneurs tackling climate change challenges and much more

December 8, 2021

Browse by Category

  • African Continental Free Trade Area
  • African Start ups
  • Algeria
  • Analysis
  • Angola
  • Asia
  • BOTSWANA
  • Botswana
  • Burkina Faso
  • Burundi
  • Business
  • Business
  • Cameroon
  • Central Africa
  • China
  • Climate Change
  • Climate Changev
  • Congo Republic
  • COVID 19
  • Culture
  • Democratic Republic of Congo
  • Eastern Africa
  • Egypt
  • Entertainment
  • Environment
  • Ethiopia
  • Europe
  • Fashion
  • Finance
  • Food
  • Food and Drink
  • Foods
  • Ghana
  • Global
  • Guinea
  • Health
  • Immigration
  • in Southern Africa
  • International news
  • Just In
  • Kenya
  • Lesotho
  • Libya
  • Life Style
  • Lifestyle
  • Malawi
  • Malawi
  • Mali
  • Markets
  • Middle East
  • Mozambique
  • Namibia
  • Nigeria
  • North Africa
  • Opinion
  • Politics
  • Rwanda
  • Senegal
  • Seychelles
  • South Africa
  • South Sudan
  • Sports
  • Startup Africa
  • STOCK EXCHANGE
  • Tanzania
  • Tech
  • Togo
  • Travel
  • Travel
  • Tunisia
  • Uganda
  • Uncategorized
  • West Africa
  • World
  • World
  • ZAMBIA
  • Zambia
  • ZIMBABWE
  • Zimbabwe

Browse by Tags

African business news Africa New Africa News african footballer African investments African manufacturing industry African news African start-up Business Classic Content coronavirus Cyclone Idai Egypt Explore Bali Finance Foods football Health Hopewell Mauwa kwacha Life Style mali news Market Stories MthuliNcube news Odion Ighalo Oilandgas Pandemic Premium reserve bank of Zambia Russia soccer South Africa Southern African News sports Stay Home United Stated Vaccine Work From Home Wuhan Zambia Zimbabwe Zimbabwe Harare Manufacturing Africa Employment creationn Zimbabwe job creation

WHO WE ARE

The Southern African Times is a regional bloc digital newspaper that covers Southern African and the world news. The paper also gives a nuanced analysis on news and covers a wide range of reporting which include sports, entertainment, foreign affairs, arts and culture.

Facebook Twitter Youtube Instagram Rss

Copyright © 2022 The Southern African Times | Powered by The Southern African Times

Privacy Policy

Terms and Conditions

  • Home
  • Southern Africa
  • Global
  • Business
    • African Start ups
    • African Continental Free Trade Area
  • Tech
  • Opinion
  • Sports
  • Lifestyle
    • Health
    • Culture
    • Food and Drink
    • Entertainment
  • SAT Jobs

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?