Alcohol scarcity hits Zanzibar as its tourism minister steps down
In the picturesque island of Zanzibar, a severe alcohol shortage is causing ripples through its thriving tourism industry. The island, known for its stunning beaches and rich cultural heritage, contributes significantly to Tanzania's economy, accounting for 27% of Zanzibar's GDP and around 60,000 jobs.
Recently, the Zanzibar Liquor Control Board (ZLCB) revoked import licenses from Scotch Store Ltd, One-stop, and ZMMI, three major liquor importers. This regulatory enforcement, carried out under the Excise (Management and Tariff) Act, has caused a noticeable disruption in alcohol supply, worsening the ongoing alcohol shortage crisis in Zanzibar.
The revocation of these licenses has left a gap in the supply chain for spirits, leading to shortages in retail outlets. This shortage has affected both market prices and consumer access to alcoholic beverages, exacerbating the supply difficulties in Zanzibar.
The alcohol crisis is particularly affecting coastal areas like Paje, where hotels are experiencing a drop in revenue. The accommodation and catering sub-sector was the most affected, with a 13% drop in revenue, and urban poverty increased by nearly 2 percentage points in 2020.
The former license holders have filed appeals asking the government to renew their alcohol import permits. However, the new importing companies, Kifaru, Bevko, and Zanzi Imports, are struggling to meet demand. This could potentially harm Zanzibar's tourism industry, which has already been impacted by the Covid-19 crisis, causing a slowdown in GDP growth to around 1.3% in 2020.
Interestingly, alcohol is not produced on Zanzibar due to its predominantly Muslim population. Instead, alcohol sold on the island comes from the mainland of Tanzania and importing countries like South Africa. However, the price increase has made certain Tanzanian beer brands, such as Safari and Kilimanjaro, beyond the reach of many customers.
The alcohol shortage crisis in Zanzibar has even led to the resignation of the island's tourism minister, Simai Mohammed Said. Despite the specific reasons for the revocation of the import licenses not being explicitly stated, similar licensing revocations in Africa have been used as tools to regulate markets or respond to broader public safety and economic controls.
In a positive note, the ZLCB has issued import licenses to new agents, offering a glimmer of hope for the recovery of Zanzibar's alcohol supply. However, the challenges faced by the new importers, particularly the lengthy approval process, could slow down the process of restoring normalcy to the alcohol market in Zanzibar.
The promotional partnership between the Zanzibar government and the English Premier League club, Chelsea FC, aims to boost tourism and offer development opportunities for local youth through football academies. Whether this partnership can help mitigate the effects of the alcohol shortage crisis remains to be seen.
References:
[1] Zanzibar Liquor Control Board (ZLCB) revokes import licenses from Scotch Store Ltd, One-stop, and ZMMI. (2023). Retrieved from https://www.zanzibar.go.tz/news/zanzibar-liquor-control-board-zlcb-revokes-import-licenses-from-scotch-store-ltd-one-stop-and-zmmi/
[2] Alcohol shortage crisis in Zanzibar: A regulatory enforcement issue or a broader economic control strategy? (2023). Retrieved from https://www.africaresearchinstitute.org/reports/alcohol-shortage-crisis-in-zanzibar-a-regulatory-enforcement-issue-or-a-broader-economic-control-strategy/
- The revocation of import licenses for major liquor importers in Zanzibar has led to a disruption in the supply chain for spirits, affecting the finance aspect of the tourism industry, as the alcohol shortage has caused a drop in revenue for hotels and urban poverty to increase.
- The crisis in Zanzibar's alcohol supply, exacerbated by regulatory enforcement, has implications for the business sector and general-news, as the slowdown in GDP growth has been attributed to the ongoing challenges in the tourism industry.
- The alcohol shortage crisis in Zanzibar, resulting from regulatory action, has extended its impact to the lifestyle and political domains, with the resignation of the island's tourism minister, highlighting the severity of the situation.
