FINDING THE BALANCE FOR SOUTH AFRICA’S LIQUOR TRADE

By Nomcebo Dlamini

• End of year festivities often see a rise in alcohol consumption, providing both economic benefits and cause for concern as alcohol-related crimes and road traffic accidents rise significantly.
• South Africa’s alcohol consumption exceeds the global average, with the country ranked 5th in the world in alcohol consumption.
• As South Africa works to develop its National Drug Master Plan for 2025-2030, it is important for all stakeholders, from government, civil society, and the private sector, to work together to put effective strategies in place to balance economic benefits with protecting public health and safety.

The festive season in South Africa traditionally sees a surge in alcohol consumption, leading to both economic benefits and societal challenges.

In December 2024, the South African Medical Association (SAMA) expressed concern over the anticipated rise in emergency incidents due to the increased alcohol intake during holiday celebrations and highlighted the correlation between excessive drinking and a spike in road traffic accidents, noting that South Africa has one of the highest rates of alcohol-related fatalities.

Supporting this concern, recent reports indicate that alcohol consumption was a major contributing factor in assault cases during the festive period. In KwaZulu-Natal, more than 2 500 suspects were arrested for assault with intent to cause grievous bodily harm, crimes often committed under the influence of alcohol.

South Africa is ranked 5th in the world in alcohol consumption, underscoring the scale of the issue. The country’s per capita alcohol consumption significantly exceeds global averages, reflecting a high prevalence of heavy episodic drinking.

Despite these challenges, the liquor industry remains a significant pillar of South Africa’s economy.

In 2022, the legal alcohol sector contributed more than R226-billion to the economy, accounting for 3.6% of the nation’s gross domestic product (GDP). This industry supports approximately one million jobs and generates substantial tax revenues, with consumers paying almost R97-billion in excise taxes in 2022. The beer sector alone contributed R22-billion in direct gross value add to South Africa’s GDP and supported 180 000 jobs directly and indirectly.

However, the societal cost of alcohol misuse is substantial, imposing financial and emotional costs through injuries, alcohol-related diseases, and a variety of social ills, prompting calls for stricter regulation.

A study published in 2014 estimated that the combined total tangible and intangible cost of alcohol harm to the South African economy was between 10% and 12% of the 2009 GDP. The financial cost alone was estimated to be R37.9-billion, or 1.6% of the 2009 GDP.

A recent study by the South African Medical Research Council (SAMRC) revealed alarming trends in alcohol availability. In two communities studied – Ga-Rankuwa in Gauteng and Thembalethu in the Western Cape – the number of liquor stores located in residential areas significant, topping 96% in Thembalethu and 92.7% in Ga-Rankuwa. However, Thembalethu recorded an alcohol outlet density of 3.87 outlets per 1 000 people, while Ga-Rankuwa recorded 1.3 outlets per 1 000 people.

Most of these outlets were unlicensed, and trading hours were largely unregulated, with some operating 24 hours a day.

This proliferation is strongly associated with various social ills, including gender-based violence, youth drinking, child neglect, and crime.

Community feedback from the study painted a grim picture: instances of children being sent to buy alcohol, mothers neglecting their infants while drinking in taverns, and spikes in violence during alcohol-driven events. A faith sector participant noted: “Children are neglected and sexually assaulted … it usually is related to substance abuse, alcohol abuse.”

In response to these concerns, certain areas across the country have implemented measures to regulate alcohol sales during high-risk periods.

The City of Johannesburg, for instance, enforced a restriction on New Year’s Eve, requiring liquor outlets and entertainment venues in specific areas to cease operations at 6pm. This initiative aimed to curb alcohol-related incidents during the celebrations.

Similarly, in Limpopo, the amendment of the liquor regulations prohibiting sales after midnight offered an opportunity to balance the interests of the business community with the wellbeing of the community.

The Central Drug Authority (CDA) has emphasised that these measures are strategic steps to mitigate the harm caused by alcohol abuse.

As South Africa develops its National Drug Master Plan (NDMP) for 2025-2030, this is a pivotal moment to initiate a dialogue on liquor regulation. The NDMP provides a framework for addressing substance-related issues, including alcohol misuse. Stakeholders from government, civil society, and the private sector must collaborate to ensure that effective strategies are embedded in this policy.

The urgency of this issue cannot be overstated. The harms of alcohol extend beyond individual consumption, affecting families, communities, and the economy. Engaging in meaningful discussions now ensures that the NDMP aligns with the country’s need to balance economic benefits with the imperative to protect public health and safety.

By fostering collaborative efforts and prioritising this matter, South Africa can mitigate the adverse effects of alcohol misuse while preserving the economic contributions of its liquor industry.

Nomcebo Dlamini is the Deputy Chairperson of the Central Drug Authority.