Cape Town - Less than a week into a fresh ban on the sale of alcohol, the liquor industry said it is seeing signs of a rise in illicit trade.
The convener of the Liquor Traders Formation, Lucky Ntimane, said: “Alcohol is being sold at ridiculously high prices. It’s happening and these prices are going to go up every week that we are closed.
“We are well aware of the numbers and we are concerned but it was expected. Our members and myself are concerned about livelihoods and some balance needs to be struck.”
Ntimane said the industry would struggle to recover from the latest ban.
“The black market is thriving. The independent liquor traders are worried about the rent and that they lose their licences. We urgently need the government to reconsider the current situation,” he said.
The legal alcohol sector contributes R72 billion to the government’s fiscus by way of taxation, VAT and excise. In 2019 the alcohol sector contributed 3.4% (R173bn) of the nominal GDP.
Beer Association of SA chief executive Patricia Pillay said: “Before Covid-19, the World Health Organization had estimated that a quarter (24%) of all alcohol consumed in South Africa was sold illicitly.
“The rise in the illicit manufacture, trade and consumption of alcohol caused by prohibition poses serious health risks as health and safety standards are bypassed.”