Dti to host liquor industry transformation seminar

Wednesday, September 20, 2017

The Department of Trade and Industry (dti) will on Thursday host a liquor industry transformation seminar in Midrand.

Discussions at the seminar will revolve around transformation within the sector and its impact on the South African economy.

Minister Rob Davies said the seminar is motivated by the slow pace of transformation in the liquor sector and compliance challenges on provisions regarding Broad-Based Black Economic Empowerment (B-BBEE), as outlined in the B-BBEE Act and sector codes.

“Studies we commissioned reveal that we have on our hands an industry that is characterised by a few large and dominant companies that are characterised by high levels of both horizontal and vertical integration, but our smaller players struggle to make an impact or even survive in this landscape,” said Minister Davies. 

Minister Davies said he hopes the outcomes of the seminar will aid in the promotion of economic transformation so as to enable inclusive and meaningful participation of black people in the mainstream economy of the country.

Acting Deputy Director General of Consumer and Corporate Regulation at the dti, Macdonald Netshitenzhe, said while there has been a gradual increase in the issuing of liquor licences to black role players, a significant change in equity has been found lacking.

“The number of active and viable registrants with a turnover in the million-rand bracket is still predominantly white. The business model of black registrants appears to be distributing to taverns and shebeens, with none venturing into wine manufacturing, importing and exporting, compared to their white counterparts,” said Netshitenzhe.

Netshitenzhe would like to see black entrants making inroads into wine manufacturing and importing and exporting for a change.

The seminar aims to create a platform where stakeholders will discuss areas of challenges regarding transformation in the sector.

The seminar will be held at the Development Bank of Southern Africa (DBSA) premises and will get underway at 9:30am. – SAnews.gov.za

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