Alcohol ban at Eastern Cape schools threatens institutions’ revenue streams, say opponents

When Dale College, one of the Eastern Cape’s oldest boys’ schools, was forced to move its 164th annual reunion off-campus, it wasn’t because of a lack of school spirit but rather a sweeping new alcohol ban.

A recent directive from the Eastern Cape Department of Education has outlawed the sale and consumption of alcohol on all public school premises in the province, a move that has upended long-standing fundraising traditions at numerous former Model C institutions.

For years, at least 38 Quintile 5 schools have had permanent licensed establishments which could sell alcohol during sports days, alumni reunions and parent gatherings. The schools insist that these occasional, tightly controlled alcohol sales were not about indulgence but about providing a crucial revenue stream for maintenance, bursaries and school development.

No more exceptions

In a circular issued in March, the head of the Eastern Cape Department of Education, Sharon Maasdorp, announced an outright ban on the sale of alcohol on public school premises. The circular said the department had been “inundated with requests” from schools seeking support for liquor licence applications, a practice that the department now considered unlawful and inconsistent with its core mandate.

The circular revealed that some schools had, for years, held permanent liquor licences, often granted through consent from school governing bodies (SGBs) or principals. Maasdorp said that such consent was invalid without explicit approval from the provincial MEC for education.

“Any application for a business to engage in the sale of liquor from school premises will not be approved,” said the circular. “The sale of liquor is prohibited from school premises. This prohibition applies to both permanent and event liquor licence holders.”

South African law is unambiguous when it comes to alcohol in schools. The Basic Education Laws Amendment (Bela) Act explicitly bans alcohol sales at educational institutions, reinforcing earlier provisions in the South African Schools Act, which prohibit the possession, sale or consumption of liquor on school grounds or at school activities with very limited, tightly controlled exceptions. These exceptions require formal application, approval by the SGB and consultation with the provincial head of department.

The circular declared all schools in the province to be alcohol-free zones, a move the department said was aligned with the national strategy to combat alcohol and drug use among learners.

The department also cited changes in liquor law enforcement as part of the rationale. The updated Eastern Cape Liquor Act, effective 1 March 2025, prohibits alcohol outlets within 500m of schools and other public institutions. Schools were specifically instructed to object to any new licence applications near their grounds and told to cancel existing ones.

Not about booze, but budgets, say parents and schools

The blanket prohibition on alcohol sales at schools, including during private, after-hours fundraising events, has been criticised. Several schools argue that such events are not about promoting alcohol, but about plugging funding gaps left by the department, particularly for basic maintenance, infrastructure upgrades, equipment and learner support.

A parent from one of the affected schools, who spoke on condition of anonymity, said that critics may not fully understand how these events operate. The parent said that at many former Model C and private schools, alcohol had been sold strictly to adults, usually parents attending reunions, sports days or other school functions as part of controlled, long-standing fundraising efforts.

“This has been happening for more than 20 years. It’s nothing like a bar or nightclub, and children are never allowed to purchase alcohol. If you're unfamiliar with how these events work, I’d encourage you to visit one of these schools and see for yourself,” she said.

“I’ve attended one of these luncheons, and it’s not a bar. It’s never caused problems, and that’s why you’ve never heard any complaints before. I’ll continue to support the fundraising initiative, even if they have to sell vouchers at a nearby venue. The money goes to infrastructure, sports teams, bursaries or maintenance — even sporting tours. It goes a long way and it makes a real difference to the school.”

The parent raised concerns about the wider implications of the ban, questioning how it would affect major cultural events held on or near school grounds. She pointed to the Makhanda National Arts Festival, where the beer tent has long been a central attraction and with the festival already shrinking due to declining support, further restrictions could undermine its viability. Many schools depend on such festivals for much-needed income, particularly from hiring out school facilities during holidays, she said.

In another example, this year’s Kirkwood Festival was forced to relocate, resulting in a financial loss for the host, Kirkwood High School, which had benefited from the event being held on its grounds during the break.

Another parent, from another affected school, pointed out that many people were missing the bigger picture, saying that schools often hired out their facilities after hours to raise funds for essential maintenance and operational costs. He said the issue wasn’t about parents drinking on school grounds, but about schools losing a reliable way to bridge the growing funding gap left by the state.

“We can all agree that South Africa has a well-documented alcohol abuse problem, but this ban does nothing to address that or the root causes. Schools with a liquor licence are not selling tequila to 14-year-olds or encouraging irresponsible drinking. They do not want to create a drinking nest but just need extra funds for the school,” he said.

According to the Daily Dispatch, more than 10 schools in the Eastern Cape have come together to challenge the education department's ban on alcohol sales on school premises, arguing that the ban has caused them substantial financial losses.

Alumni fundraising takes a hit

Phiwe Ndinisa of the Old Dalian Union (ODU) explained that in the mid-1990s, alumni from Dale College built a dedicated clubhouse complete with a bar as a gathering place for old boys. The liquor licence, he noted, was always registered in the name of the ODU, not the school itself, which creates confusion under the new rules.

“For the first time in our history, we had to host our reunion off-site,  away from the very venue that was built for it,” he said.

The ban led to a significant drop in attendance and revenue, as the union struggled to find suitable venues and faced increased costs for this year’s reunion.

While Ndinisa could not provide exact revenue figures, he said that most of the funds raised during these events went back into supporting the school, with the remainder used to maintain the ODU office.

He said the intention was never to operate a bar for profit, but rather to create a space for connection, especially as more than 90% of alumni no longer lived in Qonce.

Ndinisa highlighted the practical challenges of implementing the ban, including the lack of prior consultation and understanding.

“There’s a school where across the road there is a tavern that is operating and no one is saying anything, so it feels like this ban is beating the wrong people, because that tavern, whatever money is generated, goes to the business owner and not the school,” he said.

Education department and liquor board unite 

Eastern Cape Liquor Board spokesperson Mgwebi Msiya confirmed that 38 schools across the province had been affected by the ban.

He explained that in the past, the board had granted liquor licences based on recommendations from SGBs, which were considered the schools’ official accounting authorities. Msiya said the board fully supported the Department of Education’s decision.

Eastern Cape Education MEC Fundile Gade has framed the alcohol ban as a matter of principle, with South Africa’s drinking culture being a growing concern. The country has the highest per capita rate of alcohol consumption in Africa.

He clarified that during his tenure as MEC, he has never approved a single request for a school to sell alcohol.

“It happened by default. I am correcting that now, to ensure we create an environment that is conducive for learners,” he said.

Daily Maverick asked the Eastern Cape Department of Education for comment, but none had been received by the time of publication.

BLC Attorneys director Guy Dakin, who is representing 10 unnamed schools from across the province, has lodged a dispute against Maasdorp and Gade. Dakin told Daily Maverick he is representing a mix of schools from different quintiles.

“Some hold liquor licences and others only utilise a special event registration when required,” he said.

Asked if he considers the department’s interpretation of the SA Schools Act, particularly section 36, as legally sound in prohibiting alcohol sales, especially considering the prior licensing and established practices, Dakin said no.

“Section 36 only requires MEC consent in select instances, irrespective as to whether liquor is part of the equation or not. An SGB using a liquor licence to enable it to host certain events using the school premises falls outside the ambit of S36,” he said.

Dakin said no formal objections were raised by the Department of Education or the ECLB before this directive.

“Some have held liquor licences for over 30 years, and others for a long time. There has never been a complaint from either the ECLB or the DOE (or by a third party to the ECLB) regarding those schools holding liquor licences. There are approximately 36 schools with permanent liquor licences in the province. Schools or organisations wanting to use school premises for an event also apply for Special Event Registrations when required and these applications have been routinely approved by the ECLB since it was established in 2003,” he said.

Dakin said the ban restricts the schools from using their premises to host events to enable SGBs to fulfil their obligation to raise funds to assist the government to maintain school premises, assist with education tools and SGB appointments.

“Most schools have introduced annual reunion dinners, using their halls to bring past pupils back to visit their schools and commit to donating monies to assist the school they attended,” he said. DM