COVID-19 lock-down: This is how much SA’s alcohol ban cost the economy

South Africa's economy is currently facing the harsh realities of the COVID-19 lockdown, particularly in the liquor industry. After a two-month ban on liquor sales, stores have finally reopened, and consumers wasted no time in replenishing their stock. This move is expected to lead to a spike in liquor sales in the coming days, offering a glimmer of hope for a struggling economy. However, the ban on sales during the lockdown has come at a steep cost, with over 117,000 jobs lost, according to the South African Liquor Brand Owners Association (SALBA). Kurt Moore, CEO of SALBA, discussed the challenges and potential ways forward in a recent interview with CNBC Africa. Looking at the reopening of trade after almost nine weeks without business, Moore commended the industry players and consumers for their commitment to safely resuming operations under alert level three of the lockdown. Despite the successful reopening, Moore acknowledged the job losses suffered during the ban and emphasized the need for the industry to contribute to economic recovery. In response to queries about the industry's revenue potential under the current restrictions, Moore highlighted the anticipated spike in sales as consumers eagerly return to the market. However, he also cautioned that the impact of restrictions on gatherings could dampen the industry's recovery, as alcohol consumption is limited to homes and outdoor settings, not in groups. Moore further discussed the industry's shift towards online sales, noting that the pandemic has accelerated plans to bring online platforms to the forefront. While acknowledging the potential for job creation in the online sector, Moore expressed uncertainty about whether all lost jobs could be regained in the short term. As South Africa's liquor industry navigates the challenges posed by the COVID-19 lockdown, stakeholders are urged to innovate and adapt to the changing landscape in order to rebuild a once-thriving sector and contribute to the country's economic recovery.