14 Mar 2021

Assistant Minister of Investment, Trade and Industry, Mr Molebatsi Molebatsi has told Parliament that the government acknowledges and is concerned about the adverse impact of the COVID-19 pandemic on the liquor trade and its value chain.

Answering a question in Parliament during Minister’s Question Time on Friday, Mr Molebatsi said in response to the challenges faced by the alcohol industry, government had introduced interventions to support businesses to stay afloat since last year.

Mr Molebatsi said after the advent of the pandemic, government supported businesses through the wage subsidy scheme administered between April and June 2020, with approximately P22 million disbursed to the liquor sector.

Further, the ministry through its parastatal Citizen Entrepreneurial Agency (CEDA) assisted about 83 liquor businesses from April 2020 to February 2021 to the value of P82.5 million.

He said this helped create and sustain jobs as well as keep businesses operating. The ministry would keep looking at means to revive the industry, including reviewing the Liquor Act of 2003 to ensure smoother trade in the liquor trade.

Mr Molebatsi revealed that the alcohol industry in Botswana consisted of manufacturers such as Kgalagadi Breweries Limited (KBL), Okavango Craft Brewery and Big Sip Company (Big Sip Co), as well as retailers such as wholesalers, distributors, bars, bottle stores and others.

He said in January 2020, the investment level of the three manufacturers stood at a cumulative P3.6 billion with approximately 710 employees. The loss incurred due to restrictions on the alcohol industry led to decline on revenue amounting to around P880 million and employment level dropping to 520, with one of the manufacturers, Big Sip Company closing down and being currently under liquidation.

He further said that as at March 2020 there were 4 893 licensed liquor outlets with an employment level of 15 910 Batswana and 1 191 restaurants that employed 23 820 people.

Mr Molebatsi said 650 of the liquor outlets had closed down.

The minister disclosed that since alcohol posed a high risk to the potential spread of the Coronavirus, which spread quicker where there was a high concentration of people, liquor outlets were among the first to be closed down when COVID-19 restrictions were introduced.

Mr Molebatsi said from March 2020 to date, alcohol sale was suspended for a total number of 103 days in 2020, and a further 56 days in 2021.

This posed a negative impact for the alcohol trade and its value chain such as logistics, utilities, services such as travelling, lodging and advertising, he said. Nightclubs had been the most affected as they had not operated since March 21, 2020 and the ministry would asses ways to assist them, Mr Molebatsi stated.

But he added that they were concerned about some traders and patrons continuing to violate set regulations, with offences such as operating beyond stipulated hours and failure to adhere to COVID-19 regulations recorded by law enforcement.

Mr Molebatsi was responding to a question posed by Selibe Phikwe West MP, Mr Dithapelo Keorapetse on the state of the alcohol industry in the country.

Mr Keorapetse said the liquor industry had been pushed to the brink of collapse by measures instituted since last year, including lockdowns and numerous alcohol sale restrictions and prohibitions, with businesses and livelihoods affected.

He sought to know the extent of the damage caused to the alcohol industry by COVID-19 restrictions; how much the industry contributed to the gross domestic product (GDP) before the pandemic; what was the volume of alcohol beverages imported, the quantity brewed locally and the value in Botswana Pula.

Mr Keorapetse also sought to ascertain the number of Batswana with jobs tied to the alcohol industry, how they had been affected, and what interventions were being undertaken to assist the alcohol industry. Ends