Illegal alcohol trade a ‘serious threat’ to SA’s economy, says SALBA
The association said the problem could be curbed by various stakeholders working together.
THE South African Liquor Brand Owners’ Association (SALBA) reports that the increase in the illicit trade in alcohol has become a ‘serious threat’ to the South African economy.
In a report, the association noted this was due to the loss of taxation, including VAT and excise, as well as jobs it created through legal alcohol producers and merchants.
SALBA noted that in 2019, the alcohol sector accounted for 3.4 per cent (R173 billion) of South Africa’s nominal GDP and now estimates the government is set to lose about R6.4 billion per year due to the illegal trade of alcohol.
ALSO READ: Construction workers strike leaves learners stranded
“A 2017 study conducted by Euromonitor confirms that roughly 15 per cent of market share is accounted for by illicit trade or organised crime. That’s a significant portion of market share in the hands of syndicates who have only been further entrenched by the Covid-19 lockdown period,” said the chief executive of SALBA, Kurt Moore.
The top entries of illegal alcohol trading include border smuggling, round tripping and diversion, counterfeit products, hijackings and armed robberies of liquor stores and manufacturers.
“Inadequate prosecutions for offenders, porous borders and corruption are just some of the problems that led to illicit alcohol flooding the market and continue to agitate the situation,” said Moore.
Moore said the problem is widespread and all stakeholders, including the police, alcohol manufacturers, retailers, and consumers, would need to work together to combat it.
Caxton Local Media Covid-19 reporting
Dear reader, As your local news provider, we have the duty of keeping you factually informed on Covid-19 developments. As you may have noticed, mis- and disinformation (also known as “fake news”) is circulating online. Caxton Local Media is determined to filter through the masses of information doing the rounds and to separate truth from untruth in order to keep you adequately informed. Local newsrooms follow a strict pre-publication fact-checking protocol. A national task team has been established to assist in bringing you credible news reports on Covid-19. Readers with any comments or queries may contact National Group Editor Irma Green (irma@caxton.co.za) or Legal Adviser Helene Eloff (helene@caxton.co.za). At the time of publication, the contents of this feature mirrored South Africa’s lockdown regulations.
Do you want to receive alerts regarding this and other Highway community news via Telegram? Send us a Telegram message (not an SMS) with your name and surname (ONLY) to 060 532 5409. You can also join the conversation on Facebook, Twitter and Instagram. PLEASE NOTE: If you have signed up for our news alerts you need to save the Telegram number as a contact to your phone, otherwise you will not receive our alerts. Here’s where you can download Telegram on Android or Apple.
