South Africa Chamber of Commerce and Industry (Sacci) on Monday said restricting marketing on liquor will have a negative effect on the liquor industry and the nation’s economy.

“Restrictions on marketing will not only have negative consequences for an important South African industry, but will also have a ripple effect on businesses in other areas such as the advertising, retail and hospitality industries,” Sacci CEO Neren Rau said in a statement.

Last Friday, the inter-ministerial committee (IMC) to combat alcohol and substance abuse chaired by Minister of Social Development, Bathabile Dlamini agreed to submit the draft Control of Marketing of Alcohol Beverages Bill during the next Cabinet cycle.

According to the committee, “Research has shown that the prevalence of alcohol and drug abuse among adults in South Africa (is) expanding rapidly to the destruction of the families, community and society.”

It noted that moves by the industry to curb harm caused by drinking alcohol, such as promoting responsible drinking, were not yielding results.

But Rau said banning alcohol would not produce the required result sought by the committee.

“Alcohol abuse is a symptom of more serious socio-economic and unemployment challenges that face the country. Alleviation of alcohol abuse will be achieved if these challenges are addressed,” Rau said.

The Control of Marketing of Alcoholic Beverages Bill though in its earliest stages, could restrict alcohol advertising, and ban liquor-backed sport sponsorships.

About R1.7 billion ($168 million) is spent on alcohol advertising every year.

Marketing analyst Chris Moerdyk said the mass media industry would lose about R2.6 billion ($250.3 million) in (advert) revenue and a lot of people are going to lose their jobs if the bill is passed into law.

A similar bill was passed into law on tobacco in 2000 led to the ban on tobacco advertising and increase in taxes.