A revised draft regulation from the Ethiopian Food & Drug Administration Authority (EFDA) could see sweeping changes to the advertising practices of brewery companies in Ethiopia. The proposed regulation aims to outlaw the advertisements and promotion of alcoholic beverages on social media platforms, roadside billboards and sporting arenas, determined to toughen the rules covering health warnings and age restrictions in promotion materials.

Despite the broad sweep of the proposed regulations, the dialogue between the Authority, legal experts, and the brewery companies is far from over. As breweries prepare for a potential sea change in the marketing landscape, industry insiders call for regulations that balance protecting public health and ensuring the economic viability of a significant industry. The exact impacts of this legislation, should it come to pass, will only be seen in the coming days.

The Authority’s officials have argued that the real motivation behind these new regulations is to control the safety of food products better and fight the harmful effects of alcohol and tobacco. They hope the revised legislation will enhance the effectiveness of a law passed in 2019, banning the promotion of alcoholic beverages on broadcasting outlets.

Fireselam Fikre, the Authority’s legal department head, noted that the bill has been in the works for several years. Throughout this period, numerous meetings have been held to allow brewery companies to provide their input and feedback on the proposed regulations.

“Two brewery companies have submitted their comments,” Fireselam told Fortune.

The most recent meeting, held two weeks ago, centred on a newly proposed restriction on brewery advertisements on social media platforms. The bill will be sent to the Ministry of Health for further review.

However, the draft regulation has drawn criticism from industry representatives.

The brewery industry, which has roots dating back to the 1920s, has seen significant changes over the past century. Initially, the government controlled most of the brewery companies. However, the late 1990s saw the entrance of foreign companies, such as Castel Group and Heineken, with extensive marketing strategies and substantial financial backing. These entities sought to establish a firm foothold in the burgeoning Ethiopian market.

BGI Ethiopia, a subsidiary of the international beverage and brewery production company Castel Group, entered the Ethiopian market in the late 1990s after acquiring the state-owned St. George Brewery. With operations in over 53 countries, the Group has acquired five brewery companies under the BGI-Ethiopia umbrella. Its executives participated in the recent consultation meetings over the revised regulation.

Nega Mihrete, BGI-Ethiopia’s legal and corporate affairs director, fears the restrictions in the proposed regulation could effectively kill the brewery business.

He argued that the substantial revenue contributions of breweries, which rank among Ethiopia’s top taxpayers, have not been adequately considered by the regulation's authors. Nega believes that an enabling environment should be provided for beverage companies to promote and sell their brands while balancing public health considerations with the need for economic development.

Several advertising companies shifted their focus to digital platforms, away from the traditional broadcasting services, following the law Parliament enacted four years ago wholly banning the promotions of alcoholic drinks on radio and television broadcasts. They tried to capitalise on Ethiopia’s 20.86 million internet users.