Industry urges South Africa to curb illicit trade as report reveals economic losses

INDUSTRY players are urging the South African government to prioritize policies to curb illicit trade through the crafting of an anti-illicit trade strategy, strengthening border controls and utilising technology in securing supply chains. This follows the release of the Transnational Alliance to Combat Illicit Trade (TRACIT) report reviewing South Africa's fight against illicit trade this week.

- TAWANDA KAROMBO

The report, released in conjunction with Business Unity South Africa (Busa), highlights how South Africa’s economy continues to be threatened by illegal trade, specifically in sectors such as alcohol, tobacco, food items, pharmaceuticals, agri-chemicals, counterfeiting, mining, and wildlife trafficking.

It notes that illicit trade in tobacco and alcohol alone was costing South Africa as much as R30 billion a year in lost revenue. “Illicit trade deprives the government of critical revenue, fuels organised crime, and puts legitimate businesses at a disadvantage,” said Philippe Van Gils, director of illicit trade prevention at Philip Morris International on Tuesday.

Philip Morris International is thus urging the South African government to consider crafting of a national anti-illicit trade strategy, integrating smart tax policies, robust regulatory enforcement, and corruption safeguards.