Uganda’s Alcoholic Drinks Control Bill, 2023 to regulate alcohol sale, drinking hours

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Summary:

• The proposed Alcoholic Drinks Control Bill, 2023, in Uganda, introduced by Sarah Opendi, faces resistance from stakeholders due to its contentious provisions, including restrictions on alcohol sales and packaging, raising concerns about potential economic impacts and the need for a balanced regulatory approach.

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The proposed Alcoholic Drinks Control Bill, 2023, put forth by Sarah Opendi, the Women’s representative for Tororo District, has sparked significant debate, primarily due to its controversial provision suggesting a restriction on alcohol sales in bars from 5:00 pm to 10:00 pm on weekdays.

This regulation, aimed at overseeing alcohol consumption, is facing resistance, especially from stakeholders in Uganda’s night economy. Emmanuel Njuki, the country lead for legal and corporate affairs at Nile Breweries Limited, has voiced concerns about the potential adverse impact on Uganda’s overall economic activity, emphasizing the crucial role of the night economy. He questions the enforceability of the bill’s restrictions on nightclubs and highlights potential unintended consequences, such as pushing consumers toward illicit alcohol markets.

According to Njuki, “If this law is passed in its current form, it would devastate the livelihoods of everyone in the sector, including those in formalized operations. It infringes on the rights of farmers who supply raw materials for licit alcohol production; we use sorghum, barley, cassava, and corn to manufacture alcoholic beverages.”

Juliana Kagwa, corporate relations director at Uganda Breweries Limited (UBL), supports the idea of regulating the alcohol trade but expresses reservations about the current form of the bill. She anticipates adverse effects on production, consumption, and demand for their products, with potential repercussions on employment opportunities and contributions to the national tax base.

Kagwa also addresses environmental concerns, supporting the ban on plastic bottles but expressing worries about the potential rise in production costs affecting micro companies.

In Kagwa’s words, “Plastic bottles are not biodegradable and can take centuries to decompose. Discarded in landfills and water bodies, they contribute to the growing problem of plastic waste. Moreover, illicit alcohol is often packaged in plastic bottles. Banning plastic will help mitigate the negative impact of illicit alcohol. Therefore, we fully support this aspect of the bill.”

“While we are open to the idea and necessity of regulating alcohol trade, we believe the bill lacks sufficient data on the socio-economic and financial impacts of implementing some of its recommendations,” Kagwa adds. “Some proposals, such as the operating hours for bars being capped at 5 pm to 10 pm on weekdays, seem impractical in the short or medium term.”

The bill, introduced on November 14, 2023, by Opendi, seeks comprehensive regulation of various aspects of alcohol in Uganda, including manufacture, importation, sale, consumption, and advertisement.

Despite facing procedural challenges and debates, the bill advanced to its first reading in Parliament without a certificate of financial implication from the Ministry of Finance, Planning, and Economic Development. However, this hurdle was overcome when Speaker Anita Among invoked Section 76(4) of the Public Finance Management Act, 2015.

The bill introduces stringent regulations for licensing, operating hours, packaging, and penalties for non-compliance, specifically targeting the sale of alcoholic drinks to minors, setting packaging standards, and addressing the prevalence of illicit alcohol trade. Opendi’s goal is to address social, health, and economic challenges associated with alcohol consumption in Uganda.

The proposed legislation mandates obtaining a license for anyone involved in alcohol-related activities, with licenses issued by the town clerk, the Kampala Capital City Authority (KCCA), and chief administrative officers, valid for 12 months. The bill outlines specific operating hours for alcohol sales, restrictions on packaging, and severe penalties for non-compliance.

One significant provision of the bill focuses on selling alcoholic drinks to minors, imposing a hefty fine or imprisonment for individuals convicted of selling alcoholic beverages to children under 18. The legislation also restricts alcohol consumption in specific public settings and mandates strict age verification for alcohol purchases.

Opendi’s regulations extend to the packaging of alcoholic drinks, prohibiting packing, importing, or selling them in sachets, plastic bottles, or similar forms. Violation of this regulation incurs a serious offense, attracting a fine or imprisonment. The bill also sets a minimum packaging size for alcoholic drinks, aiming to control excessive alcohol consumption.

The economic challenges associated with illicit trade in Uganda’s alcohol market are highlighted, emphasizing the need for effective regulation to safeguard public health and contribute meaningfully to national revenue.

Uganda’s alarming alcohol consumption rates, as reported by the World Health Statistics 2023 Report, underscore the urgency for implementing public health strategies to combat alcohol abuse. The historical perspective on Opendi’s bill and the challenges faced by similar legislative initiatives in the past shed light on persistent efforts to regulate the alcohol industry in Uganda.

Stakeholders in Uganda’s nightlife industry express concerns about potential job losses and adverse effects on the night economy due to the proposed regulations. Balancing responsible drinking and maintaining a vibrant nightlife is identified as a significant challenge, drawing lessons from the UK’s experience.

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