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Kampala, Uganda | THE INDEPENDENT | Uganda Manufacturers’ Association (UMA) and Kampala City Traders Association (KACITA) have warned about the severe economic implications of Alcoholic Control Bill 2023, arguing that millions of jobs are at risk.
The Private Sector Foundation (PSFU) has also asked parliament to shift focus to address the underlying challenge of illicit alcohol that not only affects the health of consumers, but also deprives the government of billions in taxes lost.
Officials from PSFU, UMA and KACITA have in the past two days interacted with Members of Parliament on THE Health and Trade Committee who are scrutinizing the Alcoholic Drinks Control Bill 2023.
According to them, the bill is an attack on thousands of Ugandans who are employed in the alcohol sector both directly and indirectly, hence affecting over 300,000 livelihoods.
Section 14(1) of the Alcoholic Drinks Control Bill 2023 stipulates that a licensee shall not sell an alcoholic drink or native liquor before 17:00 hours and after 22:00 hours on working days and 12:00 hours and after 00:00 hours on public holidays and weekends.
“The bill is an attack on these jobs. This includes the entire value chain manufacturers, grain farmers, Distributors, Bars, and clubs. Bars in Uganda directly employ approximately 150,000 locals not counting the chefs in the prime bars, artists, comedians, boda boda cyclists who transport people, the people who sell foodstuff near the bars during late night hours, those who sell water, and many other businesses,” said Dr Ezra Rubanda, the UMA Executive Director.
UMA argued that the bill will also affect the whole value chain from the farmer who plants barley, rears chicken, and rears goats, to the manufacturer in the business, the employee of the factory, to the school-going child who will have no school fees.
According to statistics from the Uganda Bar Owners Association, there are approximately 50,000 bars in the country, implying that approximately 150,000 Ugandans benefit directly from these bars, near the bars, there is one “muchomo” or “Chapati” making gentleman who makes a livelihood totaling to 150,000 Ugandans.
All these might be left unemployed because of the time prohibition proposed in the bill. “It would also be important to understudy how politicians would hold rallies and gatherings of their constituents without any consumption of alcohol especially around Kimezas and local village discussions,” Rubanda said.
Dr Thadeus Musoke, the KACITA Chairman said that the fact that Alcoholic Drinks Control Bill 2023 doesn’t apply to the manufacture of native liquor for domestic consumption or ceremonies presents a risk of increased illicit trade which is already 65% of the total alcohol consumed in Uganda.
He said the presence of illicit alcohol in the market is bound to lead to a loss of revenue for the Government and legitimate alcohol producers.
“We recommend that the Bill be reviewed and should regulate all alcohol consumption and must not exempt any category including the currently unregulated home and traditional brews (native liquor),” said Musoke.
Earlier, officials from the Private Sector Foundation (PSFU) asked the Members of Parliament on Health and Trade Committee scrutinizing the Alcoholic Drinks Control Bill 2023 to shift focus to address the underlying challenge of illicit alcohol that not only affects the health of consumers but also deprives the government of billions in taxes lost.
According to Dr. Julius Byaruhanga, the PSFU Director of Policy and Business Development, the Alcoholic Drinks Control Bill 2023 does not apply to the sale of native alcohol.
“This is because most of the illicit alcohol is made under the guise of homebrew. The law here is counter-productive; it equally excludes by encouraging illicit (for home use). Bill extensively undermines the formal alcohol industry sector. There is an urgent need to regulate illicit alcohol production and trade because of the health implications it has on the population.
This provisions in the new bill, according to Martin Maku, the Agribusiness Sector Coordinator at PSFU will lead to a loss of income to farmers who supply raw materials. He said that brewers use sorghum, barley, cassava, and corn to manufacture alcoholic beverages.
“The bill is an attack on the national treasury. Government gets over 1 trillion in taxes from alcohol, the sector contributes over 35% of the tax base. UAIA members are named among the top 5 taxpayers in Uganda.”
The Alcoholic Drinks Control Bill was presented to Parliament on 14th November 2023 by the Tororo Woman MP Sarah Opendi, and the bill seeks to regulate the manufacture, sale, and consumption of alcoholic drinks among others.
“The alcohol sector is the biggest single employer of artists and performs in indirect jobs that include brand ambassadors, models, advertising agents, visual artists, designers, and vixens. It also engages them indirectly through sponsorships of events/shows and festivals,” Charles Batambuze, the Vice Chairman National Culture Forum stated.
