Beer dealers cry foul, claim losses of Shs550b
Alcoholic beverages distributors say they have suffered massive losses. PHOTO | FILE
What you need to know:
- Jumpstarting covid-19 affected businesses. Nile Breweries also recently said it had launched a Shs100m campaign in which it will seek to provide capital to jumpstart businesses that have been impacted by Covid-19.
Distributors of alcoholic beverages and related products have said they have lost more than Shs550b in the last eight months since government ordered the closure of bars and night clubs in March.
In a joint press briefing attended by top distributors, Mr Herbert Tumwesigye from Great Lakes Regional Distributors, said whereas they appreciate the need for an aggressive response to Covid-19, there was need to look into the welfare of people involved in the value chain, some of whose businesses have collapsed due to debts.
The continued closure of bars and night clubs by extension, he said, had had devastating effects not only on businesses in the value chain but on the economy as a whole.
“On behalf of distributors and retailers of beverages in Uganda, we are here to tell you the damage that the prolonged closure has had on us,” Mr Tumwesigye said, noting many of the businesses in the value chain, among them distributors, bars and night clubs had been forced to downsize and made a painful decision to lay off staff.
Early this month government eased restrictions on cinemas, saunas, gyms and casinos, among others but maintained restrictions on bars and night clubs, which distributors said has occasioned them massive losses and the threat of business collapse.
In March, government imposed restrictions on a number of sectors of the economy, some of which were lifted in June.
Mr Godfrey Seruta of Premier Distributors, said the continued closure of bars is a tremendous burden to the retail and distribution business, noting that “while we are cognizant of the fact that the reopening of bars presents a risk, we believe something can be done in the way of collaborative efforts to ensure the safety and wellbeing of the public”.
Majority of beverage distributors are classified as small and medium enterprises (SMEs).
SMEs contribute up to 45 per cent of Uganda’s total employment, making up more than 70 per cent of the economy and more than 30 per cent of gross domestic product.
Last week, manufacturers Uganda Alcohol Industry Association, demanded for the reopening of bars, noting they had developed strict standard operating procedures, which they had submitted to the ministries of Trade and Health for consideration.
“Places of worship, schools, international borders, airports were closed because they presented a threat but these places have been reopened gradually. We recommended distancing of three meters instead of two, registration of all patrons, opening bars between 3pm and 8pm to observe the curfew hours” Mr Onapito Ekomoloit, the Uganda Alcohol Industry Association chairman and head of corporate and legal affairs at Nile Breweries, said.
