Smugglers coining it, as calls grow for govt to act

A CALL has been made for the government to strengthen criminal penalties for illicit trade activities and appoint an Interagency Anti-Illicit Trade Coordinator as the country continues to grapple with the pervasive effects of illegal activities across sectors.

- MANYANE MANYANE

These include alcohol, food items, agrichemicals, pharmaceuticals, counterfeiting, mining, and wildlife trafficking.

This was said in the South Africa Illicit Economy 2.0 Report, launched by the Transnational Alliance to Combat Illicit Trade (Tracit) with Business Unity South Africa (Busa).

Tracit is an independent, business-led initiative that works to mitigate the economic and social impacts of illicit trade by reinforcing enforcement mechanisms and mobilising private sector collaboration across sectors, most affected by illicit activity.

The report recommended that the government appoint an Interagency Anti-Illicit Trade Co-ordinator in conjunction with the private sector, such as Business Against Crime South Africa, Busa, and affected stakeholders.

Illicit activities have been undermining businesses, depleting tax revenues, undermining international trade, and exacerbating social and economic inequalities.

The South African Revenue Service estimated that illicit trade costs the country's economy R100 billion annually.

Business Leadership South Africa estimated that South Africa loses about R250 million a day.

Tracit director of programmes, Estaban Giudici, said the South African government must prioritise efforts to combat illicit trade and the underlying conditions that facilitate it.