The Parliament of Uganda last week rejected the Alcoholic Drinks Control Bill, 2023, after extensive deliberations revealed concerns about the bill’s lack of clarity and its failure to address key issues within the alcohol industry.

The bill, introduced by Tororo district Woman MP Sarah Opendi Achieng, aimed to regulate various aspects of alcohol production, sales, and consumption in Uganda. However, it was ultimately dismissed on November 14, 2023, due to its vague objectives and potential negative impacts.

The bill sought to impose regulations on the manufacture, importation, sale, and advertising of alcoholic beverages. It proposed significant restrictions, including a ban on the sale of alcohol in sachets and plastic bottles, as well as prohibiting online alcohol sales.

Despite these intentions, the bill faced scrutiny from MPs and stakeholders who felt it did not adequately define the problems it aimed to solve.

The legislative process for the bill began on November 8, 2022, when Opendi was granted permission by Parliament to introduce it. The bill’s progress was initially hindered by the absence of a required certificate of financial implication from the Ministry of Finance, Planning, and Economic Development. However, Speaker Anita Among allowed the bill to proceed under Section 76(4) of the Public Finance Management Act, 2015, bypassing this obstacle.

The bill was referred to the Committees on Health, Tourism, Trade, and Industry for further review. These committees engaged in consultations with 30 key stakeholders, including the Uganda Revenue Authority (URA), Uganda Alcohol Industry Association (UAIA), and the Kampala Capital City Authority (KCCA), among others. Despite these efforts, the committee’s final report highlighted several shortcomings.

One major concern was the bill’s exemption of native alcohol intended for domestic use and traditional ceremonies from regulation. MPs argued that this exclusion could exacerbate the issue of illicit alcohol, which already constitutes about 65% of Uganda’s alcohol market.

The committee noted that unregulated homebrews often enter the market under the guise of personal use, undermining the formal alcohol sector, which is subject to taxes and quality controls.

The committee also criticized the proposed regulation of alcohol sales hours, noting that such restrictions could harm businesses and reduce tax revenues.

MPs pointed out that peak alcohol sales often occur during late-night hours, and limiting sales could negatively impact the economy, especially for sectors reliant on raw materials like sorghum, barley, and millet.

Additionally, the bill’s provision to regulate the packaging of alcoholic drinks to a minimum of 500 millilitres was seen as counterproductive. The committee argued that this could encourage greater consumption rather than support controlled, smaller packaging.

Ultimately, the committee concluded that the bill lacked a clear focus and did not adequately address critical issues such as illicit trade, alcohol abuse, and enforcement mechanisms. They recommended that Parliament should not move forward with the bill in its current form.

Stakeholders in the alcohol industry welcomed Parliament’s decision. Emmanuel Njuki, the country lead for legal and corporate affairs at Nile Breweries Limited, expressed satisfaction, stating that the bill would have disproportionately affected the regulated alcohol sector while allowing the illicit market to flourish.

Jackie Tahakanizibwa, chairperson of the Uganda Alcohol Industry Association, also supported the rejection, emphasizing the need for clear and balanced regulations that address the real issues within the industry.

The decision by Parliament reflects the need for a more comprehensive and well-defined approach to regulating Uganda’s alcohol industry, one that effectively tackles both the formal and informal sectors while safeguarding economic interests and public health.