South Africa: Widespread Relief as South Africa Lifts Alcohol Ban but Uncertainty Remains

On February 1, South African President Cyril Ramaphosa partially lifted the ban on the domestic transportation and sale of alcohol beverages. While the lifting of the alcohol ban has been met with widespread relief, there still remains uncertainty on how government could handle future alcohol bans. The impact of alcohol bans to the domestic liquor industry and associated supply chains has been substantial, and has placed the sustainability of these sectors at risk. Alcohol bans have also resulted in entrenched criminality and unfavorable trade between South African trading partners, including the United States. U.S. exports to South Africa decreased by 46 percent to US$11.6 million in 2020, and this may worsen if the South African government continues implementing ad hoc alcohol bans in 2021. South African wine comes into the United States duty free under the African Growth and Opportunity Act (AGOA).

South Africa: Widespread Relief as South Africa Lifts Alcohol Ban but Uncertainty Remains