Reassessing a ban on alcohol advertising post Covid-19

South Africa faces a myriad of health, safety and social concerns in relation to alcohol. Alcohol misuse costs an estimated R19.9-R86.2 billion a year (tangible costs), equating to 0.4-1.4% of South Africa’s GDP.

In 2016, the Department of Trade, Industry and Competition (the dtic) published a Liquor Amendment Bill proposing an increase of the legal drinking age to 21, more restrictive advertising, time and zoning restrictions of manufacturing and distribution, extended liability, and B-BBEE changes. 

Given the passage of time since 2016, and in light of major changes in the economy and alcohol bans as a result of Covid-19, Genesis was asked by Business Unity South Africa to independently re-assess the impact of these amendments and weigh the potential social and public health benefits against the potential economic costs.

We estimated the combined drop in aggregate consumption to be 3.51-4.44% among adults with minimal economic costs . Thus the benefits do outweigh the economic costs.

However, our broader takeaways from the report were:

• The bill is vaguely drafted, missing definitions, poorly observed constitutionality and is unrealistic, all of which makes it unlikely to be passed;
• The proposed amendments are not sufficient to address the known challenges. Rather a multi-sectoral approach to alcohol policy is needed;
• South Africa’s weak enforcement and policing undermine any possible impact; and
• Restrictions on trading hours and zoning of manufacturing and distribution are impractical and should be reconsidered.