Why minimum pricing on alcohol is not a solution for SA

Image by Alexa from Pixabay

The proposed policy to introduce Minimum Unit Pricing (MUP) on alcohol - setting a legal floor price per unit of alcohol - is being presented as a solution.

On the surface, it sounds promising. Raise the price, and you’ll reduce harmful consumption. But in practice, and especially in the South African context, the consequences are far more damaging than the theory suggests.

As the Beer Association of South Africa (Basa), we support the intention to reduce alcohol-related harm. But we strongly caution against using MUP as a policy tool.

Here’s why.

A policy that will hurt the poor

Minimum pricing does not impact all consumers equally. It hits the lowest-income drinkers the hardest - not just the heaviest drinkers. Instead of reducing consumption, many will turn to unregulated, illegal alcohol, which is often cheaper and far more dangerous.

We are not theorising - this is already happening across the country.

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Fuel for an already raging fire

The illicit alcohol market in South Africa is already a multi-billion-rand industry, siphoning off government revenue, undermining law enforcement, and endangering public health.

A poorly designed minimum pricing policy will act as fuel for this fire, pushing more consumers into the hands of criminal syndicates.

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The economic fallout

The beer industry supports close to 250,000 jobs and contributes more than R96bn to the national economy. The impact of MUP on small businesses, SMME brewers, and township retailers could be catastrophic. It risks formal sector shrinkage and will undermine job creation efforts in precisely the communities that need it most.

What we should be doing instead

We urge government to pivot to policies that work:

• Crack down on illegal alcohol production and sales
  
• Expand public awareness campaigns and responsible consumption messaging
  
• Invest in treatment and rehabilitation infrastructure
  
• Partner with the industry on education and community-based harm reduction programmes

Let’s not take shortcuts. Let’s be smart, collaborative, and deeply intentional in how we build a healthier society - one where responsible enjoyment of beer coexists with a culture of safety and care.