Minister Reveals Shs2.654 trillion is Spent on Alcohol-Related illnesses Annually

The Minister of State for Primary Health Care, Margaret Muhanga has disclosed that Uganda expends over US$677,490,337 (Shs2.654 trillion) annually to treat alcohol-related diseases.

While presenting the government’s stance on the bill before the Joint Parliamentary Committees of Health and Trade on Wednesday, Muhanga revealed that this is as a result of unregulated and reckless increase in the consumption of alcohol.

“In the Ministry of Health, we estimate spending US$677,490,337 on treating diseases caused or worsened by alcohol consumption. We propose adding a clause to identify and support alcohol-related problems in the Alcoholic Drinks Control Bill 2023,” stated Margaret Muhanga.

Muhanga proposed for an increase in the legal age for alcohol consumption from 18 to 21 years. Arguing that raising the legal drinking age aims to mitigate brain damage during crucial developmental stages.

“Setting the legal drinking age at 21 is a public health measure to shield young individuals from the potential harms linked with alcohol consumption during critical periods of brain development,” she emphasized.

She further stated that the continuous development of the brain into the early twenties, with alcohol exposure during this phase could have enduring effects on cognitive function, memory, and decision-making abilities.

“Most people make regrettable decisions when intoxicated. Raising the legal drinking age to 21 helps minimize alcohol’s impact on developing brains,” Muhanga added.

The bill was initially introduced by Sarah Opendi, Member of Parliament for Tororo District with the aim to regulate the sale and consumption of alcohol.

Under the proposed bill, penalties would be imposed on those selling alcohol outside specified hours, such as before 5 pm or after 10 pm on working days.

While the bill intends to address public health concerns related to alcohol, it has raised apprehensions among farmers who supply grains to alcohol manufacturers and Artists in the entertainment industry. These farmers fear that restrictions on alcohol sales could reduce demand for their products, jeopardizing thousands of jobs in the industry.

Henry Magara Musinguzi, the chairman of the Kahungye-Butanda Barley Farmers’ Association, while appearing before the same committee last week explained the role of the alcohol industry in job creation, with over 53,750 grain farmers directly employed and 322,500 livelihoods supported annually.

Representatives from various business associations echoed these concerns, warning of the severe economic repercussions of the proposed bill. They argued that stringent regulations could adversely affect the entire value chain, from farmers cultivating barley and other grains to employees in the alcohol manufacturing sector.

Meanwhile, Onapito Ekomoloit, the Patron of the Uganda Alcohol Industry Association (UAIA), acknowledged the need for regulation but emphasized the importance of fairness and evidence-based policymaking. He called for a comprehensive assessment of the bill’s impact on all stakeholders, including those dependent on the food, beverage, and entertainment sectors.

Furthermore, the Private Sector Foundation (PSFU) urged lawmakers to prioritize addressing the issue of illicit alcohol instead of implementing restrictive measures. According to Dr. Julius Byaruhanga, the PSFU Director of Policy and Business Development, the bill’s exclusion of native alcohol from regulation could exacerbate the problem of illicit trade, leading to significant revenue losses for both the government and legitimate alcohol producers.

Martin Maku, the Agribusiness Sector Coordinator at PSFU, stated that alcohol has played a substantial contribution of the alcohol sector to government revenue, with UAIA members among the top taxpayers in Uganda.