Adapted from Agri SA press release
Thousands of jobs are in jeopardy because of the renewed ban on alcohol sales. The following steps – intelligent management and implementation of best practice in terms of alcohol sales – would have produce better results.
The South African wine industry contributed R49 billion to the SA economy in 2019 and, in the process, created 290 000 indirect and direct jobs. Approximately 40 000 people work on wine farms and in wine cellars.
The industry paid R7,5 billion in excise duties and VAT to the fiscus in 2019 and is the biggest agricultural exporter after citrus. The industry earns more than R9 billion in foreign exchange per year, of which R7 billion is generated through bottled exports and R2 billion through bulk exports.
What should be done instead
To avoid the full-scale collapse of the industry, the government should instead focus on intelligent management and implementation of best practice in terms of alcohol sales, including the following:
- Allow for e-trading in alcohol;
- Limit volumes in areas where alcohol abuse is rampant;
- Set an earlier and longer curfew for weekends;
- Apply stricter penalties for those who drive under the influence of alcohol, those who arrange parties where alcohol is consumed in abundance and those found guilty of domestic violence; and
- Make sure that all hospitals have sufficient resources and are effectively managed.
The answer lies in intelligent management and implementation of international best practice to prevent further spread of the pandemic and also to protect the economy and promote job creation.
Photo by Tim Mossholder on Unsplash
View the “Wine and wine grapes” page on the AgribookDigital website.