South Africans have experienced a decline in wealth while alcohol consumption has increased, according to a new analysis by the University of Cape Town. The study, which examines economic trends and health behaviors, suggests that the claim by the alcohol industry about a 55% growth in the illicit market may not be accurate. As the South African government considers raising alcohol taxes, the research highlights a growing disparity between economic hardship and increased alcohol use.

The findings challenge the industry's narrative and raise questions about the effectiveness of current policies. Researchers note that the data does not support the reported rise in the illegal alcohol trade, suggesting possible misreporting or underestimation of legal sales. This discrepancy has sparked debate among policymakers and public health officials.

The study also points to broader social and economic challenges, with poverty levels rising despite government efforts to improve living standards. Public health experts warn that increased alcohol consumption could exacerbate existing health issues, particularly in lower-income communities. The research underscores the need for more transparent data and targeted interventions to address both economic and health concerns.