Page 34 - Estimates of Public Entities Revenue & Expenditure 2023

PROVINCE OF THE EASTERN CAPE ESTIMATES OF PUBLIC ENTITIES REVENUE AND EXPENDITURE 2023/24

The entity continues to implement strategies that will assist the industry in promoting sustainable
businesses, transformation in the industry and skills development in the liquor sector as well as

creating full value chain participation. Furthermore, over 109 liquor traders have been trained on
business principles, and the increase in the number of liquor associations introduced to the big liquor

manufacturers to bulk buying.

To enhance effective compliance, the entity conducted 564 preregistration compliant inspections,

1751 compliance monitoring inspections and 83 blitz operations conducted with law enforcement
agencies to enforce liquor legislation. As a result, over 218 persons operating illegal liquor trading
outlets were referred to the criminal justice system for prosecution; and 144 illegal liquor traders were

issued with the Notice to Appear in Court with an option to pay a fine (J534) amounting in total to R178
000 and confiscated alcohol to the value of R154 440.

Over and above the effects of COVID-19, the socio-economic challenges faced by communities have
contributed to the increase in alcohol abuse. The entity directed its focus to strengthen its plans to
educating more communities about the dangers of alcohol. The social accountability programmes are

conducted through school-based education and awareness campaigns, community outreach, and
mass media campaigns. During the period under review, over 260 awareness interventions were
conducted, and 65 672 people were reached through these campaigns.

7.2. Key Challenges

• Growing cases of alcohol abuse, which has escalated to issues of all forms of abuse including
Gender-Based; underage drinking at schools resulting in increase in teenage pregnancies.
• Increasing number of liquor traders who allow underage children in their outlets.

• Finalisation and implementation of the new Eastern Cape Liquor Authority Act (2018).
• Increasing numbers of illegal liquor outlets, that is putting more pressure for the entity.

• The need to increase the number of critical personnel in the Compliance Enforcement division as
well as Social Accountability as this continues to impact on the organisational performance.

• There are very few previously disadvantaged participants in the higher levels of the liquor industry
value chain, even those participating are insignificant in terms of the overall market value share.

• Introduction of black entrepreneurs into the micro manufacturing sector, as potential development
finance institutions demonstrate lack of appetite for the liquor industry.
• The liquor industry structure is very monopolistic and is dominated by international companies

who get licenced at national level by the National Liquor Authority (NLA) to operate in the country.
• This challenge is further compounded by the absence of industry-wide charter and other

instruments to guide transformation. In essence the absence of the charter encourages reluctance
from big players in the industry to transform.

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