The Uganda Manufacturers Association has warned that any attempt to enact the Alcoholic Drinks Control Bill 2023 in its current form will likely crash Uganda’s economy because it is targeting the formal sector that is regulated while leaving the informal sector to produce illicit alcohol which is detrimental to the health of consumers.
The warning was issued by officials of the Uganda Manufactures Association -UMA while appearing before Parliament’s Joint Committees of Health and Trade which are currently scrutinizing the Alcoholic Drinks Control Bill 2023 that was tabled by Sarah Opendi (DWR Tororo).
The Uganda Manufacturers Association also informed that the stringent laws and taxes imposed on manufacturers have seen over 41 of its members close shop in Uganda, in preference for other nations like Tanzania, and the provisions in the bill will likely drive more manufacturers out of Uganda.
Ezra Muhumuza, executive Director, of the Uganda Manufacturers Association questioned the timing and motive behind the enactment of the Alcoholic Drinks Control Bill 2023, arguing that Uganda has been a market for alcohol since time immemorial and the fight against alcoholism is coming at the time the manufacturers have started to adhere to Government’s call to increase production Uganda.
Muhumuza dared MPs to take the anti-alcohol campaign back to their constituencies and see what impact it will have on their political careers, arguing that alcohol has been part of Uganda’s social fabric and efforts should rather be focused on the behavioral aspect of alcohol abuse, instead of resorting to a new law.
The Association also rejected the provision in clause 5(5) of the bill which stipulates that for the grant of a license, alcoholic business premises will only be considered suitable if they are not within 400 meters of a school, a health facility, a residential area, place of worship and a fuel station; provision manufacturers describe as impractical.
They also warned Parliament that any provision in the alcohol legislation restricting the time of sale of alcohol will instead increase alcoholism among consumers and worsen cases of gender-based violence as was the case during the COVID-19 lockdown.
He warned that time restrictions will require that manufacturers set up multiple facilities to ensure other chain value players are effectively served, and this duplication of infrastructure will significantly raise operational costs including rent, utilities, maintenance, and transportation costs for particularly the employees.
