The Uganda Manufacturers’ Association (UMA) and Kampala City Traders Association (KACITA) have warned about the severe economic implications of the Alcoholic Control Bill 2023. They argue that millions of jobs are at risk.
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.
Dr. Ezra Rubanda, the UMA Executive Director, stated, “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.”
While interfacing with the Parliament’s Committee on Health and Trade, which is scrutinizing the Bill, Dr. Rubanda said that the bill would 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.
“It would also be important to understand how politicians would hold rallies and gatherings of their constituents without any consumption of alcohol, especially around Kimezas and local village discussions,” he added.
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. Dr. Rubanda emphasized that regulation must be reasonable in its requirements and penalties, promote fair competition, and not place an undue burden on businesses nor stifle their ability to innovate and grow.
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.
Allan Senyondwa, Director of Policy at UMA, stated that the time restriction will require manufacturers to set up multiple facilities to ensure other value chain players are effectively served, leading to increased operating expenses.
Dr. Thadeus Musoke, the KACITA Chairman, expressed concern that the bill doesn’t apply to the manufacture of native liquor for domestic consumption or ceremonies, which presents a risk of increased illicit trade.
Tom Bright Amooti, the MP for Kyaka Central County in Kyegegwa, argued that it is not necessary for the Government to regulate alcohol now because there are more pressing issues such as teenage pregnancies and domestic violence.
Francis Mwijukye, the Buhweju County MP, questioned how the bill would affect the tourism sector, seeking clarity on its potential impact.
