Economist: Stricter booze regulations ‘could cripple economy’
Econometrix economist Dawie Roodt has warned that the imposing of stricter regulations on the sale of alcohol or a revised curfew will have a negative impact on the economy.
President Cyril Ramaphosa will address the nation on government’s plans to curb Covid-19 ahead of the festive season.
It comes amid reports that government could limit the sale of alcohol and impose a stricter lockdown in areas experiencing a surge in coronavirus infections.
Also Read: Ramaphosa set to address nation on Covid-19 ahead of festive rush
Roodt believes the economy needs to remain open.
“According to rumours at least, it seems as if the president is going to make certain announcement regarding the sale of alcohol, regarding the curfew and so on. So, the reality is that whatever the president is going to announce will have an impact on economic activity.
“Unfortunately, it seems as if we are in for even more economic suffering. I believe that it is a wrong approach, I believe the correct approach must be to open up the economy. But of course, to put the necessary measures in place to protect the vulnerable. It is of the outmost importance to get an economy on life support to get it grow as fast as possible.”
South Africa recorded more than 4 000 new Covid-19 infections for the first time in months on Wednesday.
Roodt says regulations on the sale of alcohol will cripple liquor outlets and restaurants.
“Any restrictions on restaurants, hotels, and taverns, any restriction on the sale of alcohol or any other product will have a negative impact on the South African economy.”
