Urgent action needed in South Africa's battle against illicit trade

REPORT

- MANYANE MANYANE

A CALL has been made for the government to strengthen criminal penalties for illicit trade activities and appoint an inter-agency anti-illicit trade co-ordinator as the country continues to grapple with the effects of illegal activities across sectors.

These include alcohol, tobacco, foodstuffs, 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) in conjunction 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 inter-agency 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.

In terms of lost tax revenues, Business Leadership South Africa estimated that South Africa loses around R250 million a day.