Gauteng Liquor Traders warn of breaking point as shebeen permit delays enter eighth year

The Gauteng Liquor Traders Association (GLTA) warned on Thursday that township liquor traders are approaching a “breaking point” as delays in converting shebeen permits into full licences stretch into an eighth year, leaving thousands of businesses stuck in legal and economic uncertainty.

The association said regulatory inconsistencies, stalled reforms and municipal bottlenecks have trapped an estimated 70% of Gauteng’s liquor traders in a temporary permit system that offers no security, succession rights or pathway to formalisation.

Shebeen permits were introduced as a transitional measure to bring informal taverns into the regulated economy. In 2017, the Gauteng High Court ordered the Gauteng Liquor Board (GLB) to create a lawful process to upgrade the permits within two years. After the Board failed to act, the Gauteng Liquor Forum secured a second ruling in 2019 compelling the GLB to extend existing permits indefinitely until a licensing framework was finalised.

Eight years after the first judgment, the core issues remain unresolved.

“These are honest traders who have tried for years to regularise their operations,” GLTA chairperson Fanny Mokoena said. “Instead of being supported, they are caught in a cycle of red tape, mixed messages and unlawful delays. It is impossible to build a business or invest in your community when the regulatory system is stuck in limbo.”

Permit contradictions

Traders say the GLB is telling police that shebeen permits are non-transferable, contradicting the 2019 ruling which reinforced permit succession rights. Families taking over long-running shebeens after an owner dies or retires are reportedly being told they cannot continue operating.

The GLTA says this is devastating micro-enterprises that often serve as the sole income source for households in Gauteng’s townships.

Municipal bottlenecks

At municipal level, many traders applying for full licences are rejected because township sites do not meet zoning, parking or land-use requirements designed for formal commercial areas. Without municipal approval, the GLB cannot issue licences, creating a province-wide bottleneck and entrenching informality.

The association argues that these spatial requirements fail to reflect township realities and are effectively shutting out thousands of viable businesses from formal participation in the economy.

Economic stakes

Township liquor traders underpin significant local economic activity, supporting direct employment, suppliers and secondary micro-enterprises, the GLTA said. With township and informal trade accounting for roughly one-third of South Africa’s employment, the organisation warned that unresolved licensing policies threaten broader economic stability.

“A full liquor licence brings legitimacy, security, the ability to grow, and the possibility of transferring a business to your children,” GLTA executive Jongikhaya Kraai said. “Keeping traders trapped in an outdated permit system is not regulation — it is an economic barrier.”

The association urged the Gauteng government to implement the recommendations of the 2022 Shebeen Task Team Committee (STTC), which proposed a phased-in shebeen licence under the Gauteng Liquor Act, recognition of succession rights and township-appropriate trading conditions.

The GLTA welcomed recent engagements with the Gauteng Provincial Legislature’s Committee on Economic Development but said real progress depends on coordinated action by the Department of Economic Development, the GLB and trader representatives.

“The people keeping the township economy alive are traders doing their best to comply despite constant obstacles,” Mokoena said. “If the province wants growth, transformation and safer communities, resolving shebeen licensing is one of the most urgent and impactful steps it can take.”

The association said it remains committed to working with government on responsible trading and community safety, but warned that without decisive action, the crisis will deepen.

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