Johannesburg – While the selling of liquor may be lucrative for entrepreneurs, communities and citizens have the added responsibility to make sure they are aware of the businesses that are coming up around them.
Entrepreneurs looking to start a business may find selling alcohol to be a lucrative business.
Currently, South Africa has 34 500 licensed tavern owners, 10 000 shebeen permit holders, and 2 700 independent liquor store owners.
Over the last week, there have been multiple tavern shootings across the country resulting in the death of over 20 people, and leaving another 15 people injured. The shootings happened in Soweto, Sweetwaters in Pietermaritzburg, Katlehong and Mamelodi in Pretoria.
KwaZulu-Natal Police Commissioner Nhlanhla Mkhwanazi lamented the staggering number of taverns within the Sweetwaters area. There are about 160 taverns in the rural area of Sweetwaters.
“For this tavern to operate, the owner of this place applied for a licence and the liquor board sent a communication to the community and consulted them and asked them if they object to it and there was no objection by the community. If there is no objection the liquor board will issue the licence,” he said.
Mkhwanazi was making reference to the 28-day period the community is entitled to object to a liquor licence being issued to a property in the immediate vicinity.
Here are some examples of general objections that have been received in the past that entrepreneurs need to consider when applying for a licence.
- There are too many liquor licences in the area already.
- Liquor is abused within this community.
- High crime statistics in the area and people feel unsafe.
- Disturbing noise levels.
- There is no adequate parking at the specific premises.
- Premises are situated within a residential area.
There are strict regulations to be adhered to by entrepreneurs who seek to establish enterprises that sell liquor to the public. Liquor licences are applied for and granted in accordance with the provisions of each province's liquor act.
Acquiring a liquor licence can cost anything from R15 000 to R25 000.
Any person who is above the age of 18, can apply for a liquor licence. Businesses and Closed Corporations may also apply.
The following persons may not apply for a liquor licence:
1. Any person who received a jail sentence without the option of paying a fine.
2. Any person who was declared insolvent but not yet rehabilitated.
3. Any Company, Close Corporation, or Co-operative in which either persons mentioned in 1 or 2 above has a shareholding or member’s interest, or any partnership or trust that the person is involved with, are also excluded.
There are two types of liquor licences: on-consumption and off-consumption.
The first is to sell liquor that can be taken on the premises (like in a restaurant) and off-consumption where the liquor cannot be consumed on the premises but must be taken away. It is possible to get a licence that allows a combination of the two.
Licences must be renewed each year and if the renewal licence is not paid on time, the licence will lapse. You will then have to apply for a new licence. Make sure you are aware of when you must renew the licence so that you do not lose it.
The supporting documents required when applying for a liquor licence are certified copies of IDs of the applicant, business registration forms, proof of address, and premises layout approved by the municipality.
A South African Police Services (SAPS) police clearance certificate not older than three months from the date of issue is required.
You will need a tax clearance certificate and a BEE certificate, if applicable.
It is important to note that liquor licences are issued to the premises and not individuals. This means that it cannot be used at any other location other than the one it has been issued for.
Acquiring a liquor licence is straightforward, but keeping it may prove to be difficult.
They are implored not to sell alcohol to pregnant women, children, and already intoxicated patrons. Encourage members not to encroach on the rights of other community members by respecting allowed trading hours and respecting by-laws.
Abiding by these regulations will go a long way in ensuring that traders are found to be compliant with the law and ensure they do not have their licences revoked.
Jones Mnisi from South African Liquors Traders’ Association said: “We normally hold meetings to teach our traders how to comply with the regulations”.
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