The World Health Organization South Africa Country Office (WCO) commissioned study on alcohol affordability and the impact of excise taxes on alcohol consumption in South Africa. The purpose of the study was to increase the evidence base for, and support the development of, country level policies on the reduction of harms related to alcohol consumption.  The report focuses on the fiscal aspects related to alcohol policy in South Africa.  It consideres trends in alcohol taxation, tax revenues, pricing, affordability, consumption and prevalence, and how these interact with each other.

The study found that beer, wine and spirits in South Africa have generally become more affordable over time, despite the increase in real prices. Furthermore, a comparison with a large sample of countries shows that South Africa has amongst the cheapest and most affordable alcohol products in the low and middle income world and that alcohol products are cheaper and more affordable in South Africa than in some high income countries.

The study acknowledges the existence of effective and appropriate fiscal interventions to reduce the effects of the harmful use of alcohol.  South Africa’s has a related experience with successful increases of excise taxes on cigarettes resulting in reduced smoking prevalence.  As a result the study concludes that an increase in taxation of alcohol products would be an important step in reducing the harm caused by alcohol in South Africa.

The study was conducted by the University of Cape Town.