Concerns over foreign nationals operating liquor outlets in KwaZulu-Natal

THE liquor industry in KwaZulu-Natal has come under scrutiny amid allegations that the majority of liquor outlets in many parts of the province are being run by foreign nationals.

- THAMI MAGUBANE

The claims have raised concerns about the proliferation of illicit alcohol, which poses a health risk and results in the loss of tax revenue for the country.

The outlets include taverns and bottle stores, which are more than 8 000 across the province.

These claims were raised by members of the Economic Development Committee during a meeting with the KwaZulu-Natal Economic Regulatory Authority (KZNERA) on Friday.

There has already been growing discomfort in some communities with foreign nationals being dominant players in the township economy such as operating tuckshops, very often pushing locals out of business.

The members of the Economic Development Committee reported that more than 60% of liquor outlets in areas around Newcastle are now operated by foreign nationals.

This situation, they warned, is enabling the proliferation of illicit alcohol, with a report tabled at the meeting revealing that the illicit alcohol market in KZN is estimated to be worth R2 billion, resulting in a loss of approximately R120 million in tax revenue annually.

Committee members demanded to know how it is permitted for foreign nationals to run liquor outlets, given the stringent process in place for South Africans to obtain a liquor licence.