The Gauteng Liquor Traders Association (GLTA) has rejected the Gauteng Liquor Board’s proposed increases in liquor licensing fees, warning that the move would disproportionately punish township-based micro and small businesses already crippled by a broken, unworkable regulatory system.
GLTA, which represents thousands of liquor traders across Gauteng, says the proposed fee hikes are unaffordable and unjustifiable, especially given the deep structural issues that continue to undermine township liquor businesses, including systemic delays and inconsistent licensing outcomes, policy contradictions, and bureaucratic gridlock.
“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.”
GLTA’s submission to the Gauteng Department of Economic Development outlines how local traders are already struggling to keep up with licensing costs, often paying up to R6,000 a year, while facing penalties, excessive renewal requirements, and ongoing confusion around shebeen permit conversions.
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GLTA also flagged a sharp rise in fraudulent licences, delays in processing legitimate applications (some stretching to 12 months), and declining approval rates, particularly in townships, where zoning and land-use regulations designed for formal urban areas are misapplied.
“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,” says Kraai.
“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, and where the country’s growth and jobs present a material opportunity.”
The GLTA warns that fee hikes will only widen the gap between formal and informal traders, especially given the unfettered growth of corporate supermarkets in the township ecosystem.
GLTA has instead proposed a set of alternative reforms that would boost revenue without crushing township-based small businesses, including the formalisation of the sector, a sliding-scale fee model based on business size and turnover, issuing temporary trading permits for survivalist entrepreneurs, and fast-tracking the finalisation of all shebeen licence applications.
GLTA has also called for the implementation of the Shebeen Task Team’s 2022 recommendations, which remain ignored.
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“We are not opposed to contributing fairly to the provincial fiscus, but that contribution must be based on a system that works,” says Kraai.
“Right now, the system is broken. And until it is fixed, fee hikes will only drive more businesses into informality and further weaken compliance.”
GLTA reaffirmed its willingness to engage in meaningful partnership with the government, but emphasised that this must start with recognising the realities of township traders, and designing and implementing policy accordingly.
According to trade and industry analysis, the alcohol value chain contributes an estimated 3-4% to South Africa’s national GDP, with Gauteng accounting for a major share due to its concentration of retail, wholesale, and entertainment activities.
“GLTA plays a vital role in the province, and our members are key to the township economy. They create jobs, support families, and uphold livelihoods. If Gauteng is serious about growth, creating jobs and safety, it must start by supporting them, not pricing them out,” said Kraai.
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