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On 1 November 2021, due to the municipal elections, the government has halted alcohol sales for 24 hours. As a result, the Beer Association of South Africa (BASA) is afraid that the day-long ban may not end there.
BASA’s CEO Patricia Pillay says BASA is concerned the government may impose further arbitrary limitations on alcohol when the fourth wave of Covid-19 infections arrives in December as predicted.
The organisation has written to Minister of Trade, Industry, and Competition (DTIC) Ebrahim Patel, bracing for the worst. BASA is requesting Patel’s urgent intervention at a Cabinet level. This is to ensure that irrational alcohol bans are no longer imposed.
Especially over the festive season, which is critical for the local beer industry and the thousands of jobs, it supports.
Because of the previous four prohibitions, the beer sector has lost 161 days of revenue since March of last year. As a result, the livelihoods of 240 000 people were endangered. In addition, SA gov lost R34.2 billion in tax income. Additionally, BASA stated that South Africa lost R10.2 billion in excise revenue.
“No government funding or relief has been provided to assist our sector throughout this crisis, which has resulted in many small businesses being forced to close their doors permanently, including 27 craft breweries. South Africa currently has the highest unemployment rate in the world – any further job losses within the alcohol industry will have a devastating impact on our economy,” Pillay stresses.
Therefore, the beer industry has repeatedly requested that the government share the scientific facts and proof on its decision to enforce prior alcohol prohibitions.
Given such arbitrary decision-making, BASA believes that the local beer sector will face the repercussions of government restrictions again in the run-up to summer.
“This concern has been reinforced by Minister Cele announcing that alcohol sales will be banned on municipal election day, with no reason given for government’s decision or any consultation with the industry having taken place,” Pillay adds.
BASA continues to urge the government to communicate with the public before enacting additional measures to combat the spread of Covid-19 in the coming months.
“Our industry, and the over 450 000 livelihoods it supports, can simply not afford the President announcing another immediate ban on the legal trade of alcohol without any prior warning or an opportunity to properly engage with government. BASA firmly believes that as the Minister responsible for trade and industry, Patel should listen to our plight and take up our concerns in order to help us save a sector so vital to our economy and job creation. It has therefore requested an urgent meeting with him to discuss government’s plans to save lives and livelihoods ahead of the festive season,” concluded Pillay.
With thousands of companies and jobs still in danger across the beer value chain, BASA says that quick action is necessary to keep people employed and families nourished during the holiday season.
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