Cape Town – The Parliamentary Portfolio Committee on Health convened on June 17, 2025, to discuss the contentious Tobacco Products and Electronic Delivery Systems Control Bill. The committee heard presentations from various stakeholders, including SIP Liquor and representatives of informal traders, who raised significant concerns about the bill’s potential negative impact on small businesses and livelihoods.

SIP Liquor, a Black-owned retailer of alcoholic beverages and tobacco products, highlighted its successful e-commerce model that includes in-store sales, click & collect, and on-demand home delivery within a 10km radius of its Sandton stores. CEO Madoda Khuzwayo expressed alarm over clauses in the Bill that would completely ban the online sale, distribution, supply, or purchase of tobacco products, as well as their promotion or advertisement through electronic means. Khuzwayo argued that this ban, carrying a penalty of up to 15 years imprisonment and a fine, is an “outdated regulatory approach” not aligned with the future of retail and risks criminalizing legitimate online businesses. SIP Liquor emphasized its robust double age verification system and physical ID checks on delivery, asserting that it provides a safer and more controlled environment for tobacco sales than traditional brick-and-mortar stores. The company appealed for the removal or amendment of these clauses, urging alignment with online liquor sales regulations and protection for jobs and innovation.

Informal traders, represented by the Limpopo Small Medium and Hawkers Association and the Gauteng Liquor Traders Association (GLTA), also voiced strong opposition. They highlighted that cigarettes are a “critical component of informal trade livelihoods” and that the bill threatens the income of an estimated 2 million informal traders across the country, many of whom are women and single mothers.

Key concerns from informal traders include:

• Ban on Product Display: The proposed ban on displaying tobacco products is deemed unfair and impractical for informal traders who lack the infrastructure to hide products. The penalty for violation is a hefty 10 years imprisonment and a fine.
• Ban on Single Stick Sales: Clause 4(3)(c) banning the sale of individual cigarettes, or “loose draws,” is seen as directly threatening their business model. Traders explained that most of their customers cannot afford a full box and rely on single stick purchases, which also attract customers for other products. This ban, with a 10-year imprisonment penalty, is viewed as criminalizing poverty.
• Smoking in Outdoor Public Spaces: The bill’s extension of smoking bans to outdoor spaces like markets and taxi ranks, holding traders liable for customers smoking near stalls, is considered unreasonable and unenforceable. Concerns were raised about potential for extortion and corruption by law enforcement officials. The GLTA specifically argued that the proposed distances for non-smoking areas are impractical in townships, where space is limited, and could put patrons at risk.
• Standardized Packaging: The requirement for standardized packaging and labelling removes brand identity, which companies have invested heavily in, and may infringe on protected trademarks. This could make it difficult for consumers to distinguish between authentic and counterfeit products.
  Both SIP Liquor and the GLTA underscored that while they support measures to curb smoking, the bill’s current provisions are “unworkable” and will lead to significant job losses and increased illicit trade, as witnessed during the COVID-19 lockdown. They urged Parliament to adopt a balanced, evidence-based approach that considers the unique trading environment in South Africa and protects the rights and dignity of informal traders and small businesses.