Gauteng liquor traders slam proposed licensing fee hikes as blow to township businesses

The Gauteng Liquor Traders Association, which represents thousands of liquor traders across Gauteng, says the proposed fee hikes are unaffordable and unjustifiable. TheGauteng Liquor Traders Association(GLTA) has rejected proposed increases in liquor licensing fees by theGauteng Liquor Board, warning that the move would disproportionately hurt township-based micro and small businesses already battling what it describes as a “broken and unworkable” regulatory system. The association, which represents thousands of liquortradersacross Gauteng, on Monday said the proposed fee hikes are both unaffordable and unjustifiable given ongoing structural challenges within the licensing regime.

“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.” In its formal submission to theGauteng Department of Economic Development, the GLTA outlined what it called “deep-rooted inefficiencies” in the licensing system. These include approval delays stretching up to 12 months, declining licence approval rates in township areas, and confusion surrounding the conversion of long-standing shebeen permits into formal licences.

Last month, theGauteng Liquor Board announced that it was unable to issue official annual renewal certificates due to ongoing supplier challenges. However, the board over the weekend announced that the 2026 renewal licence certificates have arrived earlier than anticipated and were available for collection from Monday. Gauteng Liquor Board announced that it was unable to issue official annual renewal certificates due to ongoing supplier challenges.

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According to the association, traders are already paying up to R6,000 annually in licensing costs, while facing penalties, excessive renewal requirements and inconsistent enforcement. It also flagged a rise in fraudulent licences circulating in the market, further complicating compliance efforts for legitimate operators. GLTA argues that zoning and land-use regulations designed for formal urban areas are often rigidly applied in townships, where historical spatial planning and informal property arrangements make strict compliance difficult.

“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,” Kraai said. “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.”

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