South Africa loses close to R7 billion a year because of illicit tobacco trade, according to Business Leadership South Africa (BLSA) who suggest that the largest share of the illicit cigarette market is occupied by those manufactured locally, with other brands smuggled from neighbouring countries like Mozambique and Zimbabwe making up the rest.
Research presented at a BLSA event in Johannesburg yesterday showed that the most popular illicit brands were priced below the set national price of R20.01. “Cigarette packs are being sold at an average of R10 a pack. The size of the illicit cigarette trade is estimated at 30-35 per cent of the total formal market and 42 per cent of the informal market,” said BLSA.
The BLSA research comes after Finance Minister Tito Mboweni announced in his 2020 Budget that there would be a renewed focus on curbing illicit and criminal activity in South Africa.
