IPSOS found that illicit cigarettes are available in roughly three out of four stores (76.6%), with some packs selling for as little as R5 per 20-pack. On the streets, a pack of cigarettes might seem harmless. In South Africa, they are anything but.
Illicit tobacco is more than a smuggling problem – it’s a multi-billion-rand industry that robs the country of revenue, fuels organised crime and exploits financial gaps that once landed South Africa on the Financial Action Task Force (FATF) greylist. Revenue from these activities has contributed to high-level corruption, political party funding, and other criminal endeavours, making the consequences of illegal cigarettes a concern for every South African, according to the Institute for Security Studies (ISS). For ordinary South Africans, this means less money for public services, weakened law enforcement, and risks that extend far beyond smoking.
In fact, illicit trade in tobacco and alcohol alone is estimated to cost the government R30 billion a year in lost revenue. This is according to theSouth Africa Illicit Economy 2.0 Report, launched by the Transnational Alliance to Combat Illicit Trade (TRACIT) in conjunction with Business Unity South Africa. “Illicit trade continues to pose a serious threat to South Africa’s economic stability, governance, and international standing,” the report said.
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The illegal cigarette trade forms part of a broader illicit economy, according to Richard Chelin, a researcher, and Rumbidzai Nyoni, a digital communication officer with the ENACT project at the ISS. They have written that this economy also includes counterfeit goods, motor vehicles, clothing and textiles, movies and music. “The revenue from this has also contributed to high-level corruption, political party funding and other criminal endeavours,” they said.
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