By Delisa Thwala
“A significant positive impact could be realized if Eswatini Beverages ceased alcohol sales for a month and evaluated the outcomes.”
These thoughts were expressed by Motshane Member of Parliament (MP) Wilton Nkambule during a recent session of the House of Assembly, focusing on the Ministry of Commerce, Industry and Trade Portfolio Committee.
The committee members were participating in a workshop regarding the newly enacted Liquor Licensing Act, 2023, held at the Royal Villas Hotel on September 18, 2024.
Nkambule inquired whether Eswatini Beverages might consider pausing alcohol sales for a month to demonstrate their concern about alcohol abuse.
His question followed a presentation by Eswatini Beverages Country Director Doreen Tumureebire, who noted that the liquor sector contributed E260 million in taxes last year.
The MP acknowledged the liquor industry’s profitability and its substantial contribution to the national economy.
“Nonetheless, alcohol has led to the loss of lives and compromises our youth’s future. To illustrate your awareness of these negative effects, would you contemplate refraining from selling alcoholic beverages at least once a year?”
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he asked while recognizing that this could financially impact the sector.
In response, Eswatini Beverages Head of Legal and Corporate Affairs Mpumelelo Makhubu expressed uncertainty about the feasibility of halting liquor sales entirely.
He referred to the previous national lockdown due to the coronavirus pandemic, during which alcohol sales were prohibited.
Makhubu highlighted that people resorted to brewing their own drinks, and some even smuggled concentrated alcohol into the country, which was unsafe for consumption.
Furthermore, Makhubu explained that Eswatini Beverages produces beverages with lower alcohol content compared to other beers.
He mentioned options with zero alcohol, some with three per cent, and the highest alcohol content at six percent.
“Our products are milder compared to other alcoholic beverages. They resemble traditional beer (umqombothi) and are brewed similarly.
Thus, we encourage legislators to explore laws that promote consumer interest in our products.”
Notably, Eswatini Beverages Limited (EBL) is poised to benefit from the increasing beer demand in South Africa.
EBL Country Director Doreen Tumureebire shared that they addressed previous challenges hindering their export ambitions to South Africa (SA) towards the end of last year.
Tumureebire expressed that their goal for this year is to export at least 28,000 hectoliters, or 2.8 million liters, of beer to South Africa, translating to E30 million, with E10 million allocated for taxes.
She noted that since the beginning of the year, they have already exported 5,000 hectoliters to SA, aiming to boost that number to reach their target of 28,000 hectoliters.
Specifically, they are exporting Carling Black Label beer, which is currently in high demand in South Africa.
Tumureebire stated that local brewers are struggling to meet this demand, and EBL is prepared to increase production.
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To enhance exports to South Africa, they have requested a reduction in the export levy, as other countries like Mozambique have lower rates, allowing them to export to SA more easily than Eswatini.
Interestingly, in 2023, Anheuser-Busch InBev reported record volumes, with a 20 per cent revenue growth attributed to its flagship Carling Black Label beer,
which significantly contributed to the group’s overall revenue increase of 13.2 per cent to US$14.2 billion (approximately R260 billion) by the end of March.
The director emphasized that there are opportunities for growth, and collaboration with the government could pave the way forward.
Additionally, she highlighted the company’s recent digitization strategy, focusing on automation and mobile payment platforms that are adaptable for seamless integration and automated systems.
Globally, alcohol remains the most widely used drug readily available in stores. Its usage is associated with numerous health risks and other issues for individuals.
However, the repercussions of alcohol consumption extend beyond the individual drinker.
According to the Centers for Disease Control and Prevention (CDC), excessive alcohol consumption costs the U.S. nearly a quarter trillion dollars annually.
The impact of excessive drinking weighs heavily on the U.S. economy.
Economic costs are just one aspect of the toll; societal issues related to alcohol consumption are vast.
The effects of alcohol abuse reach far beyond financial burdens, influencing personal relationships and family dynamics.
Moreover, communities, schools, workplaces, and the healthcare system, as well as society at large, are affected.
Economic ramifications include heightened healthcare costs, decreased productivity, and legal expenses.
Health consequences arise from various alcohol-related health issues, accidents, injuries, and violence.
Legal issues encompass increased crime rates, drunk driving incidents, and other law enforcement challenges.
Family-related consequences involve child abuse, neglect, intimate partner violence, and substance use issues in children.
Educational challenges are linked to lower academic performance and achievement.
Such costs often correlate with individuals suffering from alcohol use disorders.
According to the 2021 National Survey on Drug Use and Health (NSDUH), 29.5 million individuals over the age of 12 (10.6% of the population) experienced an alcohol use disorder within the past year.
Estimates indicate that about 13.9% of Americans will experience severe alcohol use disorder at some point in their lives.
Research indicates that alcohol abuse and addiction contribute to intimate partner violence, create financial instability for families, impair decision-making abilities, and lead to child neglect and abuse.
Long-term alcohol consumption alters brain functions, affecting decision-making, emotional regulation, and self-control, thereby increasing aggression and the likelihood of violent behaviour among drinkers.
In South Africa, the government reports that alcohol is responsible for the loss of 3 million lives annually, accounting for 5 per cent of all deaths.
This statistic is concerning, given that alcohol is the most frequently abused psychoactive substance in the country, with high levels of binge drinking and associated harm.
Former Minister of Social Development, Lindiwe Zulu, characterized the issue by stating, “Alcohol is one of the most abused substances causing significant harm to many individuals in our nation.”
Alcohol abuse not only adversely affects individual health by damaging vital organs and increasing vulnerability to life-threatening diseases but also endangers the safety and well-being of others.
In efforts to address alcohol-related harm and identify effective regulatory practices, South Africa recently hosted the Global Alcohol Policy Conference (GAPC).
This marked the first time the conference took place in Africa and brought together policymakers, academics, community-based organizations, and NGOs from around the world.
The conference made significant strides in developing a global alcohol policy aimed at protecting children and vulnerable adults while discussing how regulating alcohol marketing could mitigate abuse.
During the conference, Minister Zulu committed to reviewing the Liquor Amendment Bill, which seeks to enhance regulations surrounding alcohol trading, marketing, and sales.
The proposed bill includes strong measures such as raising the legal drinking age to 21 and extending the radius restrictions for alcohol sales near educational and religious institutions.
It also assigns liability to alcohol retailers and manufacturers for any harm caused by regulations violations.