The beer gamble that threatens Zanzibar’s economy
Beer
Partygoers will continue to dig deeper into their pockets as prices of beer and other alcoholic beverages continue to surge in Zanzibar amid limited supply.
The situation could also derail Zanzibar’s ambition to attract more tourists, especially those who prefer to have booze to unwind.
The shortages began after the Zanzibar Liquor Control Board refused to renew licences of alcohol importers. The Board didn’t give reasons for its prohibition.
With Zanzibar having no local brewery, people scrambled for what was available from the Tanzania mainland leading to a hike in prices.
At the Sauti za Busara fete last weekend, thousands of tourists showed up to take part in this annual occasion. But something was missing from their merry. Liqour.
At the Ngome Kongwe, only Tanzania Breweries Limited products were available. Usually, imported brands such as Heineken, Windhoek and Savannah are common here. Now even local brands are selling fast.
Players in the local tourism sector now fear that the continued price hikes and fluctuations could turn the archipelago into a very expensive destination. Tourism accounts for 30 percent of Zanzibar’s GDP.
Bar owners, too, fear that the continued scarcity could affect their quarterly tax returns.
They largely spoke on the low, fearing appearing to contradict local government policy.
Insiders believe that the Zanzibar Revenue Authority could have lost close to $10 million in the past 45 days across the entire value chain.
But even as such fear remains constant, the Zanzibar Revenue Authority Commissioner Yusuf Mwenda said it is too early to gauge the effect of the scarcity of alcohol on revenue collection from the entire value chain in the first quarter of 2024.
“We are so far in the first month of January 2024, there has been no effect in revenue collection on the entire value chain. However, we are making close monitoring on the trend and business,” said Mr Mwenda.
He said the tax body is on the ground monitoring the situation.
“Our people are on the ground monitoring the trends and market. Thereafter, with the data we may establish the reality,” he said.
Ironically, just last week Mr Mwenda called for a meeting with three suppliers to discuss various issues including the reality of insufficient supply of beverages and how it affects revenue collection.
“One of the areas where we collect considerable revenue is in the tourism value chain, which include hotels and entertainment, therefore the insufficient supply of beverages affects our revenue collection,” Mr Mwenda told the importers
Mr Francis William Kessy from Kifaru Holdings, one of the new suppliers, is confident that after clearing the initial hitches they have the capability to stablise the market.
However, he, too, could not give any timelines.
Miss Nicole Verjus, from Bevco said they have ironed out importation issues with Tanzania Revenue Authority to make the business stable.
As the three players pull up their socks, retailers who spoke to the Citizen claimed the root of the problem lies with the Zanzibar Liquor Control Board.
The Citizen
