Open letter to Provincial Liquor Boards

The National Liquor Traders has noted with increasing alarm the deliberate, discriminatory harassment of licensed township liquor outlets in a number of provinces, while formal establishments in the urban centres go unmolested.

This arbitrary harassment of small black-owned liquor traders continues a trend witnessed during the Covid-19 lockdowns, when township businesses were subjected to relentless raids and inspections apparently aimed at driving them out of business.

This short-sighted targeting of legal, licensed township businesses compounds the devastating effects of the alcohol bans which brought the sector to its knees, while driving up the illicit trade to unprecedented levels. Continuing to punish legal businesses while the rampant illicit trade flourishes and unlicensed shebeens operate under the radar is a recipe for increased informality and crime. This clampdown on legal liquor traders is being felt especially in the Western Cape, where the provincial government has announced the non-automatic renewal of liquor licences, along with a hike in fees, while municipal law enforcement authorities will now have powers to police and fine outlets.

The effect of this crackdown on legal establishments, in the absence of capacity or will to address either the unlicensed or illicit trade, is predictable, especially in light of the recent experience with alcohol bans: legal operators will be forced out of business while the underground market booms.

The authorities have failed to explore more sustainable alternatives, such as encouraging compliance by bringing more outlets into the formal sector or enabling their conversion to alternative businesses. Most importantly, the authorities have made no effort to work with the formal liquor industry to improve compliance, despite the notable successes achieved through this approach in the past.

Demonising and harassing the legal sector is a counterproductive strategy that will inevitably have unintended consequences, including a surge in illicit trade.

By Lucky Ntimane
Convenor, National Liquor Traders