Alcohol ban South Africa: More direct jobs and value chain opportunities got killed off by the ongoing alcohol ban. In an official statement on August 4th, Consol Glass revealed the suspension of a new glass plant in Ekurhuleni, Gauteng. The news follows the production shutdown of Heineken SA. That also contributed to more job losses and a lack of investor confidence. The giants teeter after SARS announced more lost revenue than both huge COVID-19 relief loans. We reported the outcome arrived because “the…banning of cigarettes and alcohol…hollowed out the country’s coffers.”
Alcohol ban kills more employment opportunity – ripple effects
Consol Glass planned a new plant in Gauteng. In fact, that promised at least “120 direct jobs” and approximately “2,600 opportunities across the value chain,” Businesstech noted. Now suspended “indefinitely,” the company lays the blame on the ongoing alcohol ban. To date, it has no official end date.
Ripple effects mean that Ross Mould based in Wadeville halts an expansion project. That could have resulted in an expansion of their workforce by 25 percent. Ross Mould’s Africa’s “largest mold-manufacturing company.” Additionally, that also means the Nigel plant project valued at R1.5 billion sees further losses. Those involved the loss affect mining investments as demand for raw materials declines.
COVID-19 alcohol ban, restricted consumption regulations impact big industry
“On-premises consumption” plus “lost compound growth” brings an estimated drop of “15 percent in the next year.” Directly related to the alcohol ban, the outcome seems sadly similar to the suspension of a “R6 billion investment” by Heineken. We reported that the “expanded operations on the North Coast anticipated at least 400 new jobs.”
Consol Glass also reported the suspension and cutbacks in the face of the alcohol ban means more uncertainty. A maintenance and expansion budget of “R800 million” got put on hold. Mike Arnold, the CEO of Consol Glass said that other countries never saw a huge reduction in demand. In their cases, no major alcohol bans and zero tolerance restrictions applied. As it stands, no demand for products justifies no expansion in Nigel.
The government won’t commit to end date of the alcohol ban
The government claims the alcohol ban won’t last forever. However, the uncertainty created means that big business players simply can’t plan ahead. CEO Arnold noted the lack of a “clear time frame” relating to “a return to trade.” Notably, it means “a loss of confidence.“ In fact, the market looks “severely compromised.”
In layman’s terms, business confidence falls as the government fails in engaging in meaningful dialogue or a clear path forward. Notably, the tobacco and alcohol bans already brought incredible hardship. And, fears mount over job losses and poverty. In fact, those in the workplace fear more deaths and hardship from job losses than from COVID-19, itself.
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