By Sitha Maliwa:
South Africa is waging a war against illicit tobacco, but experts warn the fight is far from over. Stefano Betti, Deputy Director General of the Transnational Alliance to Combat Illicit Trade (TRACIT), has sounded the alarm, describing the country’s struggle as “deeply concerning” and calling for urgent, decisive action.
Speaking at the EMEA Security Conference & Exhibition in Cape Town on Wednesday, Betti laid bare the scope of the problem: entrenched illegal networks, under-declared production by local manufacturers, and a sprawling informal economy that provides fertile ground for crime.
“There is much more that can be done,” Betti said, highlighting the gaps in legislation and the pressing need to strengthen controls against money laundering linked to the illicit tobacco trade.
He warned that the legal battles currently underway, involving the South African Revenue Service, are painstakingly slow. “Even when enforcement actions succeed, the underlying infrastructure that supports illegal tobacco distribution often remains intact,” Betti said.
The roots of the problem, he noted, run deep. “The networks and infrastructure created by the cigarette ban during the Covid-19 lockdown don’t just disappear. That is what makes this so difficult to eliminate.”
Recent estimates paint a grim picture: illicit cigarettes may comprise between 50% and 75% of the market. Taxes on a legal pack can reach around R25, while illegal products are being sold for as little as R5, creating a “completely uneven playing field,” Betti said.
The illicit trade extends far beyond tobacco. Alcohol and other sectors have been hit hard, with billions lost in revenue and, in some cases, fatal consequences for consumers of contaminated products. Organised crime thrives in this shadow economy, while corruption remains a persistent threat, with up to half of customs officials estimated to be vulnerable.
Yet, amid the grim statistics, there are signs of hope. The establishment of the Border Management Authority in 2023, combined with strengthened prosecutorial capacity, is aimed at improving coordination and tackling complex economic crimes, including asset recovery. Internationally, South Africa’s removal from the Financial Action Task Force grey list signals improved compliance with global anti-money laundering standards.
Still, Betti warned that progress is fragile unless political will translates into concrete results. “The picture is mixed,” he said. “There is recognition at the highest level that something needs to change. But that commitment must now be turned into real, operational impact.”
Law enforcement is stepping up. Brigadier Kobus Lategan, head of the South African Police Service Emerging Economic Crimes Unit, revealed that a national operation targeting illicit trade is being launched under direct instruction from President Cyril Ramaphosa.
Describing the initiative as “massive,” Lategan said it will coordinate multiple government entities to tackle intellectual property crime and counterfeit goods. The strategy will rely on intelligence-led enforcement, proactive disruption, targeted raids, strengthened investigations, and careful public communication.
“We cannot do this alone. If we don’t work with other departments and the private sector, we won’t achieve the results,” Lategan warned. The battle against illicit tobacco-and broader organised crime-is far from over. But with stronger legislation, tighter enforcement, and unwavering political follow-through, South Africa may yet reclaim control over an economy under siege. – @NewsSA_Online
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