While the liquor sector supports thousands of jobs across manufacturing, retail, tourism and hospitality, it must also confront serious challenges such as illegal trading, underage drinking and alcohol abuse.

This is according to Economic Development, Tourism and Environmental Affairs (Edtea) MEC Musa Zondi, as reported by The Witness.

KZN’s liquor industry is under the spotlight as government and key stakeholders convene for the KZN Liquor Indaba and Business Expo, aimed at driving economic growth while strengthening regulation and social responsibility.

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The two-day engagement, hosted by Zondi, in collaboration with the KwaZulu-Natal Economic Regulatory Authority (KZNERA), began on Friday at Sibaya Casino and is expected to conclude on Saturday.

Addressing delegates, Zondi said the indaba is a critical platform to shape the future of the liquor sector while balancing economic opportunities with public safety.

“This platform allows us to engage meaningfully on the future of the liquor industry, its contribution to economic growth, and the collective responsibility to ensure responsible trade and consumption,” he said.

Speaking about the challenges the liquor sector must confront, Zondi outlined several government interventions already under way.

These include targeted compliance operations, a new equitable licence fee model aligned to business turnover, and the introduction of a Public Interest Assessment Policy to ensure community considerations in licensing decisions.

Zondi said there were ongoing legislative reforms and digital innovations, including an online licensing system aimed at improving efficiency and reducing bureaucratic delays.

The portal was officially launched on Friday and is available on the KZNERA’s website.

Adding to the discussion, KZNERA board chairperson Mbali Myeni provided a detailed account of the authority’s performance, and progress made since the previous indaba.

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Myeni said the sector continues to play a vital role in both economic participation and job creation, while also requiring careful regulation to address social harms.

“We must strike a careful balance between reducing alcohol-related harm and unlocking economic opportunities within the sector,” she said.

She outlined key focus areas for the indaba, including responsible trade and compliance, tackling underage drinking, addressing illegal liquor operations, strengthening regulatory reforms, and improving processes through digital innovation.

Myeni also revealed several key highlights achieved by KZNERA. She said the entity generated R704m in tax revenue, along with R32m in liquor-related fees, boosting provincial finances. She added that 5 935 jobs were facilitated across the liquor and gambling value chains.

The authority has since issued 759 licences, with 85% awarded to black-owned SMMEs.

“Intensified compliance operations, conducted with law enforcement agencies, led to the seizure of over 48 000 litres of illegal alcohol and 151 illegal gambling machines, strengthening regulatory enforcement.

“Social responsibility programmes reached nearly 3 900 individuals, particularly learners, with awareness campaigns on alcohol and gambling-related harm,” said Myeni.

She acknowledged ongoing challenges in the licensing process but said steps are being taken to address inefficiencies through legislative review and improved systems.

She added that there are proposed amendments to the KwaZulu-Natal Liquor Licensing Act aimed to tackle issues such as red tape, trading hours, licence renewals, and the negative effects linked to alcohol abuse and illegal trading.

She called on stakeholders to use the indaba to move beyond discussion and deliver practical solutions.

“This must be a genuine indaba defined by listening, accountability and co-creation. The success of this platform will depend on all of us,” said Myeni.

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