South Africa’s move to a stricter lockdown and restrictions will be the death knell for many businesses and jobs, warn industry groups.<\/p>\n
On Sunday evening (27 June), president Cyril Ramaphosa announced that South Africa will move to level 4 lockdown, with a complete prohibition on gatherings and the sale of alcohol imposed.<\/p>\n
Restaurants have also been stopped from offering sit-down meals, while the new curfew means that businesses will have to close by 20h00.<\/p>\n
The restrictions will remain in place for 14 days Ramaphosa said, and will be assessed thereafter. They take effect on Monday, 28 June, and will run until 11 July.<\/p>\n
The Beer Association of South Africa (BASA) said it is now seeking legal advice on the national government’s decision, in the interest of protecting jobs and livelihoods.<\/p>\n
“We have repeatedly communicated to the government how the previous three alcohol bans have devastated thousands of small businesses across the beer value chain leaving business owners, their employees and families destitute.<\/p>\n
“Many more businesses will now find themselves on the brink of closure as a result of the latest 14-day ban and no financial relief being made available by the government.”<\/p>\n
The group added that the prohibition of alcohol will not stop South Africans from drinking. Instead, consumers will purchase their alcohol from illegal outlets, putting their health and safety at risk.<\/p>\n
“Yet, despite this, the industry continues to bear the brunt of the slow roll-out of vaccines and failures within the national health system.”<\/p>\n
This was echoed by Wendy Alberts, chief executive of the Restaurant Association of South Africa (RASA), who said that businesses will not be able to rely on government financial support as in previous waves.<\/p>\n
“Yet again, restaurants will be the hardest hit, with no discussions, no Temporary Employer\/Employee Relief Scheme, no financial support,” she told Fin24<\/a><\/strong>.<\/p>\n “The industry is going to be destroyed. Deliveries won\u2019t save restaurants given the large commissions they need to pay third-party delivery groups,” she said.<\/p>\n Alberts added that thousands of restaurants had closed since the lockdown was first introduced in 2020, with the latest restrictions set to be the end for many more.<\/p>\n
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