MER aims to stimulate economic growth in liquor industry

The Mpumalanga Economic Regular brought stakeholders together to deliberate on challenges in the liquor trading industry.

The CEO of the Mpumalanga Economic Regulator (MER), Vusi Mtsweni, said the regulatory body is committed to fostering the economic growth of liquor traders while ensuring that communities are safeguarded from the harmful effects of alcohol misuse.

He also emphasised the need for harmonised regulations and stronger partnerships with communities to address social issues related to alcohol abuse.

He said this during his address at the two-day Mpumalanga Liquor Indaba held at the Steve Tshwete Banquet Hall in Middelburg on October 8 to 9.

“We are dedicated to creating a liquor industry that not only thrives economically but also operates responsibly and sustainably. The Mpumalanga Liquor Indaba is seen as a significant step forward in balancing economic development with responsible regulation, ensuring the long-term sustainability and well-being of communities across the province,” he said.

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The indaba was attended by community members, stakeholders, liquor traders and representatives of organisations in the liquor sector, who took part in discussions to drive economic transformation while ensuring responsible alcohol regulation in the province.

Some of the attendees raised concerns that included some liquor outlets that are located near places of worship and educational institutions. Mtsweni clarified that there is currently no legislation in South Africa that prohibits liquor outlets from operating in close proximity to such areas.

“However, the MER takes such concerns into account during the licensing processes while often adjusting trading hours for outlets near these sensitive locations to minimise disruption.”

To foster economic growth while protecting communities and promoting sustainable practices, recommendations were deliberated at the indaba. These included support for township traders through skills development and business funding, amendment of the liquor laws to address the evolving challenges within the industry that will ensure a more responsive and effective regulatory framework, development strategies by local municipalities for full compliance by traders, and establishment of a fraud and corruption hotline to report illegal activities in the liquor industry.

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While echoing Mtsweni’s address, Charlene Louw, who represented the Beer Association of South Africa, emphasised the importance of maintaining a balanced approach to liquor regulation.

“It is crucial to weigh the costs and benefits of the alcohol industry. You cannot simply wish alcohol away or regulate it into extinction. Doing so would open the door for illicit alcohol to flourish, causing greater harm. Governments would lose tax revenue and healthcare costs would rise significantly,” Louw said.

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