COVID-19: No more booze for now says Ramaphosa

Booze manufacturers are likely to be fuming as President Cyril Ramaphosa shut down South Africa’s lucrative alcohol sales for the second time this year.

President Ramaphosa is under pressure to take decisive action as the COVID-19 pandemic is expected to kill up to 50,000 South Africans and ismonths away from its peak. Already it has seen 276,242 cases – with more than 100,000 in Gauteng alone and 80,000 in the Eastern Cape – with 4079 people losing their lives.

In his address to the nation from the Union Buildings in Pretoria, President Ramaphosa said many of the cases that came into hospitals were related to the consumption of alchohol that justified a ban on sales forthwith. He said this would also be strengthened by a curfew between 9 PM and 4 AM daily. as the state of national disaster was extended to August 15.

“We have to make sure there are sufficient beds in hospital and they are not occupied by people who are there because of alcohol,”says Ramaphosa.

It is only a matter of weeks that the ban on the sale of alcohol was lifted after the national lockdown of the entire economy in March.

The ban not only gave rise to a thriving black market, but also cost the drinks companies billions that it was starting to recoup with the resumption of sales.

Distell, the maker of the Savanna, Hunter’s Dry and Nederburg brands, says it saw a spike in demand as restrictions on selling of alcohol have eased. Even then volumes were down a bout a quarter year on year.

From July 1 2019 to the end of June 2020, its South African revenue was down by 18.3% and volumes by 25.6%, the liquor group said in a trading statement.

Many more losses are likely for the drinks companies in the months ahead as South Africa battles with a pandemic that looks far from over.

Partner Content

Mauritius-Africa, a partnership for shared prosperity

By: Mathieu Mandeng In the current complex and challenging circumstances that are testing the...


The City of eThekwini pulled out all stops to give fans of the annual Vodacom Durban July (VDJ). The Virtual Vodacom Durban...

GAUTRAIN – Why It Matters

Economic growth continues to be one of the focus areas for the Gauteng Provincial Government (GPG) and the Gautrain responds to that...

Tata International concludes a securitization transaction for its African Subsidiaries

UAE financial centers act as a gateway to benefit African businesses GCC, July 13th, 2020: Tata International Limited (TIL)...

Trending Now

Tech giants report strong earnings

The big four tech giants, worth nearly $5 trillion reported earnings last week defying the worst economic downturns on record. Joining CNBC Africa for more on the numbers is Henry Biddlecombe, Analyst at Anchor Capital.

Human trial for COVID-19 vaccine launched by Johnson & Johnson

Johnson & Johnson has confirmed that a human trial for a COVID-19 vaccine has begun in the United States and Belgium after positive results were seen in its study with monkeys.

SAVE CEO on the benefits of open banking amid COVID-19

COVID-19 has in a way increased the uptake of open banking solutions and with many consumers starting to use mediums such as services provided by fintechs, could this affect your banking choices, CNBC Africa spoke to the CEO and Founder of SAVE, Shema Steve for more.

Kenya’s domestic borrowings up in July amid COVID-19 response

Almost record monthly figures in regards to the Kenyan government borrowing marked the first month of the new fiscal year collecting over $2 billion through bills and Treasury bonds, but what does this mean if anything for the fiscal direction of Kenya, Callstreet Research Director, George Bodo spoke to CNBC Africa for more.

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

- Advertisement -