EU warns SA to lift ban on alcohol sales
SA alcohol industry said it is important for government to consider the overall effect of the ban when deciding on the next steps in response to Covid-19.
The South African alcohol industry noted the concerns raised by spiritsEUROPE at the start of the Women’s Day long weekend regarding imbalances in trade between South Africa and the European Union (EU) as a result of the continued ban on alcohol sales in SA.
The EU is said to be SA’s biggest trading partner.
According to the SA alcohol industry, the Economic Partnership Agreement signed between the two parties in 2016 allows for export of 110 million litres of South African wines into the EU region duty-free. In return, the EU exports mainly spirit products to Southern Africa. This trade is now constrained due to the extended ban on alcohol sales.
In a statement issued last week, spiritsEUROPE urged the SA government “… to cancel alcohol prohibition quickly or risk devastating consequences at home and abroad”.
The organisation, which represents the largest producers of spirits in the world, urged the SA government to provide a clear and reliable timeline to quickly lift the total ban on the sale of alcohol imposed as part of the response to Covid-19 outbreak.
Ulrich Adam, Director General of spiritsEUROPE said, “Banning sales also means banning imports of European spirits, while South Africa continues to export particularly wine, which has a 110 million litres quota duty-free export into EU under the EPA – contributing to R5,7 billion in net exports earnings for SA on alcohol.
“Our member companies operating in South Africa are deeply concerned about the uncertainty of current trading conditions.
The lack of clarity on whether and when the ban might be lifted makes business planning impossible. We, therefore, need a clear and reliable timeline.”
Sibani Mngadi, spokesperson for the SA alcohol industry, said it is important for the government to consider the overall effect of the ban when deciding on the next steps in response to Covid-19.
“With progress being made in the health response to the pandemic, it is critical for the government to limit further the negative impact of the ban on the local economy, and on our international obligations as a country,” said Mngadi.
South Africa’s economy has already lost an estimated R13 billion in direct capital investments, with South African Breweries, Heineken and Consol Glass all having halted their capital expansion projects last week due to the ban.
