Cyril Ramaphosa's Address on COVID-19 and Its Effect on the Wine Industry

Current Context

In South Africa, the COVID-19 case numbers are rising once more. Following the announcement on May 31, Level 2 restrictions have taken effect again. For indoor gatherings, the maximum is 100 participants, while outdoor gatherings can have up to 250. The mandatory social distancing measures remain in place, and mask-wearing along with quarantine regulations continue to be enforced.

Facts and Figures

• 480,000 healthcare workers have received the Johnson & Johnson vaccine.
• 67% of all healthcare workers are fully vaccinated.
• 480,000 individuals received Biontech/Pfizer vaccines in the past two weeks, with the second shot scheduled for 42 days later.
• In the coming days, 1 million doses will be administered to high-risk groups.
• 3 million individuals are logged in the electronic vaccination registry.
• There are approximately 400 vaccination centers across the country.
• South Africa has secured vaccines for 40 million adults (with a total population of around 58.5 million), including 31 million doses of Johnson & Johnson (single-dose, produced in South Africa) and 20 million of Biontech/Pfizer. Johnson & Johnson distribution has been delayed due to issues in the United States.
• 1.3 million Pfizer doses have been delivered, with another 630,000 set to arrive; by the end of June, a total of 2.5 million doses are expected. Distribution to rural areas poses challenges due to cold chain logistics.

The South African Alcohol Industry

The alcohol and wine industry in South Africa has faced significant hardships under lockdown restrictions. Alcohol sales were prohibited domestically for months, causing around 80 wineries to shut down and leading to thousands of job losses. The industry views recent governmental decisions positively.

The South African Liquor Brandowners Association (SALBA) expressed support for President Cyril Ramaphosa's address on May 30, noting they stand behind pandemic containment measures and favor evidence-based, transparent policy-making.

Sibani Mngadi, chair of SALBA, highlighted the strategic importance of social gathering limitations. The allowance for taverns, bars, and restaurants to remain open under certain conditions is crucial for the tourism sector and the broader economic recovery.

The industry is against broad sales bans as long as targeted and effective measures exist. Previous restrictions resulted in severe economic ramifications, including a revenue loss of roughly 36 billion Rand, 29 billion Rand in lost tax income, and a potential impact on 200,200 jobs.

Additionally, illegal alcohol trade has surged, with sales currently exceeding those in the combined wine and cider sector, leading to estimated tax losses of around 11.3 billion Rand.

Kurt Moore, SALBA's CEO, views the acceleration of the vaccination rollout as essential for economic recovery. The industry has volunteered logistical support to expedite the vaccine distribution campaign.

Looking ahead, the alcohol industry aims to act as a reliable partner, promote responsible consumption, and collaborate with the government and civil society to establish a sustainable social pact.

For further reading on the topic, an insightful article is available from Weltspiegel dated May 22, 2021.