Alcohol consumers and producers in South Africa are facing tighter regulations after President Cyril Ramaphosa outlined a renewed crackdown on alcohol abuse during his 2025 State of the Nation Address.

Ramaphosa said government is intensifying efforts to address social problems linked to excessive drinking, including child developmental issues, road fatalities, violence and crime. He highlighted alcohol consumption during pregnancy as a contributor to child stunting and called on provinces to strengthen liquor regulations.

Among the measures under consideration are limiting the number of liquor outlets, shortening trading hours, banning large-volume alcohol sales, introducing minimum unit pricing, increasing excise duties, and tightening advertising rules. While some steps could be implemented quickly, others will require consultation.

The push aligns with action from other departments. The Department of Transport recently proposed lowering the legal blood alcohol limit for drivers to zero. Transport Minister Barbara Creecy has called for a full ban on drinking and driving, potentially in place by Easter, with support from Parliament’s Portfolio Committee on Transport.

The proposal follows festive season data for 2025/26 showing road crashes fell 5%, but alcohol-related violations surged. A total of 8,561 drivers tested positive for alcohol — a 144% increase year-on-year. The department plans to amend Section 65 of the National Road Traffic Act to introduce a zero-tolerance approach.

Separately, the EFF has tabled legislation seeking a complete ban on alcohol advertising, while advocacy groups are lobbying to raise the legal drinking age to 21 or 23.

Industry braces for tax pressure

The alcohol industry is also anticipating financial strain. Finance Minister Enoch Godongwana is set to present the 2026 Budget on 25 February, with further increases in “sin taxes” widely expected.

National Treasury has traditionally raised excise duties on alcohol and tobacco above inflation. In 2025, tobacco taxes rose 4.8% and alcohol duties climbed 6.8%, affecting beer, wine, ciders, fruit-based beverages and spirits.

Industry bodies, including the Beer Association of South Africa, have urged government to avoid further above-inflation hikes, warning that higher taxes squeeze margins, deter investment and hit smaller producers hardest. They argue rising input costs have already outpaced inflation for several years.

The association also cautioned that escalating taxes and tighter regulations could drive consumers toward illicit and unregulated alcohol markets. Beer producers, it said, already shoulder both corporate income tax and excise duties.

While excise increases are intended to reduce consumption, the industry maintains that price hikes mainly burden lower- and middle-income consumers and risk shifting demand to cheaper, unsafe alternatives rather than curbing drinking overall.

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