Gauteng’s proposed increase in liquor licence fees has drawn sharp criticism from industry associations, political parties, and township traders, raising fears of job losses, business closures, and a surge in unlicensed operations.
The Gauteng Liquor Board (GLB) has indicated that annual licence fees, currently costing up to R6 000, could be increased, a move that critics say comes at a time when many small and independent operators are already under severe economic pressure.
The Beer Association of South Africa (BASA) told the Saturday Star that while it supports a well-regulated and responsible liquor licensing system, poorly timed fee hikes could deepen the strain on already struggling businesses.
“The Beer Association of South Africa supports a well-regulated and responsible liquor licensing system, as it plays an important role in ensuring compliance and public safety,” BASA said.
“However, many licensed liquor outlets, particularly small and independent businesses, are already operating under severe economic pressure due to rising costs, energy disruptions and constrained consumer spending. Significant increases in licence fees at this time could place further strain on these businesses.”
BASA warned that the consequences of poorly considered increases could be far-reaching.
“If adjustments are not carefully considered, there is a risk that some operators may be forced to shut down, resulting in job losses, or that financial pressure could unintentionally drive growth in illicit and unlicensed trading, outcomes that would undermine regulatory objectives,” the association said.
The association added that liquor licensing has traditionally followed a fair and consultative approach.
“This process has been fair and consultative. The last time GLB increased fees was in 2014 due to a concerted effort to understand the economic factors, C-19 and many other impacting influences,” BASA said.
It also highlighted the administrative burdens on smaller operators, including the need for municipal consent, police clearances, and public participation processes, which can be complex, time-consuming, and difficult to navigate for new entrants.
“The Beer Association of South Africa recognises that the liquor licensing process plays an important role in ensuring responsible and compliant trading. However, the current administrative requirements… can be complex, time-consuming and, in many instances, difficult for small or new entrants to navigate,” BASA said.
The Gauteng Liquor Traders Association (GLTA) echoed these concerns, stressing that township-based micro and small businesses are particularly vulnerable.
“These increases are being pushed onto traders operating in an environment where the system itself is failing them,” said GLTA spokesperson Jongikhaya Kraai.
“You cannot raise fees on small businesses when you haven’t even fixed the basics, from a backlog of almost two years in licence approvals to red tape that makes it nearly impossible to comply.”
Kraai said township traders face mounting challenges, from high licensing costs and penalties to delays in processing applications, some stretching up to 12 months.
“Small township businesses are being drowned by paperwork, delays, and inflexible rules that make it impossible to succeed, and then they are told to pay more for the privilege. This is not just a licensing issue, it’s a failure to enable growth, formalisation and job creation in the communities that need it most.
Political figures have also joined the debate. Mike Moriarty, DA Gauteng Shadow MEC for Economic Development, criticised the GLB for its administrative failures and warned of the consequences for jobs and law enforcement.
“Licence holders and law enforcement agencies in Gauteng are in limbo following the Gauteng Liquor Board’s announcement that it is currently unable to issue official annual renewal certificates due to ongoing supplier challenges. If restaurants and other hospitality businesses lose money through loss of customers they will be forced to close, causing job losses,” Moriarty said.
“It is unacceptable that the GLB is unable to execute its mandate as stipulated in the Gauteng Liquor Act, which requires that every liquor licence be renewed annually. This administrative failure exposes MEC Maile’s failure to provide leadership and hold this department accountable.”
Moriarty warned that the GLB’s inefficiency could drive businesses into illegal operations, creating further economic harm and corruption risks.
“Some businesses may decide to operate illegally, which normally involves corruption and bribery, leading to lawlessness, economic harm and further job losses. But proper leadership can turn the situation around.”
Anita Nkonki
iol.co.za
