A sobering thought on government’s booze ban

The new puritans in the ANC – those who abhor smoking and drinking with a religious fervour – are relishing the success of their clampdown on cigarettes and booze under the aegis of the disaster act regulations.

While the intention may have been logical – to help cut down on the socialising which smoking and drinking often cause and which increases the potential spread of the coronavirus – there will be unintended consequences.

Firstly, the illegal cigarette market is, by all accounts, booming. And because of that – because legal brands may not be sold – government has already lost out on hundreds of millions of rands in excise duties.

The same is true for alcohol, where South Africa might find that a prohibition on booze could be just as ineffective as the one in the US in the 1920s.

Bootleggers might become an even larger gangster class, as happened there.

The obvious impact of the alcohol ban is already evident, however, in the toll it is exacting on the industry.

The biggest player in the booze sector – and one of this country’s most successful multinational business groups – is South African Breweries (SAB) … and it is being hit hard.

It seems that jobs cuts of around 500, or 8% of its total workforce, are inevitable.

And if a financially strong company like SAB is going to take a hit, then spare a thought for the microbrewers in the beer sector, who say they may never reopen if the restrictions are not lifted soon.

SAB is also considering destroying 130 million litres of beer currently in its brewing tanks because, under the restrictions, it is not allowed to bottle it and store it.

This may suit the ANC, though.

You have no job, no food. But at least you are sober.

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