PSFU boss Stephen Asiimwe (C) greets a guest as Amelia Kyambadde looks on
The business community has called for Government intervention over the increasing cases of illicit alcohol on Ugandan market, saying this isn’t only hurting the formal alcohol manufacturers but also endangering lives of Ugandans who consume the illicit alcohol.
The concerns were first raised by Stephen Asiimwe, Executive Director of Public Sector Foundation Uganda (PSFU) during the launch of Alcoholic Beverages Responsible Marketing Code at Kampala Serena Hotel, where the alcohol manufacturers came together through self regulations to address concerns of drink- driving, heavy episodic drinking in order to promote responsible drinking.
“As PSFU, we are concerned about the loss of revenue that is accrued from the informal sector. A lot of illicit is taking place in open spaces and the lack of enforcement in our view is what is hurting this industry. I would rather that they put more resources in controlling these places. The other thing is that that employment isn’t registered, regulated, managed and isn’t enforced yet these guys are creating many jobs that are traceable, manageable and they can even set standards,” Asiimwe said.
He cited the case of PSFU that has in its records 380 formal bars and these are employing over 8000 people.
Harriet Ntabazi, State Minister for industry commended the alcoholic beverages dealers for coming together through their umbrella body Uganda Alcohol Industry Association to champion responsible alcohol consumption, saying this is step in the right direction towards formalising other alcohol producers who are dealing it illegally.
“I am so happy that the country has reaped a lot in alcohol because it is one of the areas where our nation reaps in terms of taxes. The alcohol industry is generating over Shs800Bn in terms of taxes annually, this is a lot of money,” She explained, adding: “You can’t underrate such a sector which generates such money because this is about 37.8% of the total taxes of this nation. And even if they impose taxes, people continue taking because alcohol is a need, to other people it is medicine.”
Amelia Kyambadde, Presidential Adviser on Industry who warned some of the political leaders who have embarked on regressive laws targeting the alcohol industry, warning that such laws if enacted are likely to cripple the sector.
“We have people who are talking about abolishing this and abolishing that but they forget that they are shooting themselves in the foot. We are hurting the economy, we are hurting the workers because this is employment, we are hurting our exports, technology advancement through the agriculture value chain. So we need to think through some of these things while we are designing them. When you look at the market value it is about US$7.3Bn but there is a problem of illicit,” said Kyambadde.
Julianna Kaggwa, Vice Chairperson Uganda Alcohol Industry Association highlighted that the code will ensure that members of the association in their marketing messages aren’t designed to appeal to minors below age of 18years, don’t use their brand names, logos, trademarks on children’s clothing, toys, place their marketing on media platforms where audience can be reasonably expected to be above 18years.
The code will also ensure that the members aren’t used to sponsor sports, celebrities or events that appeal to minors and members who flout the code will be charged Shs10M.
The Code’s principles include responsible marketing, responsible consumption, good taste and decency, product ingredients and alcohol content, health messages, drink driving, digital marketing among others.
