By Mbongeni Shabangu
In recent years, the proliferation of illicit liquor products has become a significant concern for both public health and the economy. The unchecked spread of these illegal beverages poses a grave threat to our society, and it is imperative that we take decisive action to address this issue.
Illicit liquor, often produced in unregulated and unsanitary conditions, can contain harmful substances that pose serious health risks to consumers. These products are frequently sold at lower prices, making them attractive to individuals who may not be aware of the dangers they present. The consumption of such liquor has led to numerous cases of poisoning, long-term health complications and even fatalities. A recent survey conducted by Euromonitor International showed that 49% of the respondents knew of someone who was physically harmed by consuming counterfeit or unregulated liquor products, while 29% of the respondents knew of individuals who unfortunately died as a result of consuming these dangerous products.
Moreover, the illicit liquor trade undermines legitimate businesses and deprives the government of valuable tax revenue. Licensed producers and retailers, who adhere to strict regulations and quality standards, find themselves at a disadvantage as they compete with the lower-priced illegal alternatives. This not only affects their profitability but also impacts the broader economy by reducing tax collections that fund essential public services. The current fiscal loss is estimated to be around R16.5 billion in 2024, and has grown significantly from R6.4 billion in 2017.
To combat this growing scourge, a multi-faceted approach is required. Firstly, law enforcement agencies must intensify their efforts to identify and dismantle the networks involved in the production and distribution of illicit liquor. This includes conducting regular raids on suspected illegal operations and imposing stringent penalties on those found guilty. At the recent awareness and training workshop of all relevant liquor industry stakeholders, conducted by the Gauteng Liquor Board (GLB), in conjunction with the Drinks Federation South Africa (DF-SA) and the South African Brandowners Association (SALBA), it became evident that some of the biggest obstacles to successful and sustainable convictions lied in fragmented enforcement operations, and outdated and inconsistent regulatory frameworks .
Secondly, public awareness campaigns are crucial in educating consumers about the dangers of illicit liquor. By highlighting the health risks and the legal consequences of purchasing and consuming these products, we can reduce demand and encourage individuals to make safer choices. Unsafe, unregulated liquor products are increasingly circulating in vulnerable communities. These products are often contaminated with methanol and industrial-grade ethanol or manufactured in unhygienic, uncontrolled environments.
In addition, the government should consider implementing measures to make legitimate liquor products more accessible and affordable. This could involve reducing taxes on legal beverages or providing subsidies to licensed producers, thereby narrowing the price gap between legal and illegal options.
Finally, collaboration between various stakeholders, including law enforcement, health authorities, and the alcohol industry, is essential. By working together, we can develop comprehensive strategies to tackle the issue from multiple angles and ensure that our efforts are effective and sustainable. The legitimate alcohol value chain supports almost 500 000 jobs and about 1.1 million livelihoods, from farming and manufacturing to logistics, retail, hospitality and tourism.
In conclusion, the fight against illicit liquor products is a battle that we cannot afford to lose. The health and well-being of our citizens, as well as the integrity of our economy, depend on our ability to clamp down on this illegal trade. It is time for us to take a stand and protect our society from the dangers of illicit liquor.
Mbongeni Shabangu is the director responsible for law enforcement and compliance at the Gauteng Liquor Board