R30bn lost to illicit trade

REPORT: ANNUAL REVENUE LOSSES FROM BOOZE, CIGGIES KEEP GROWING

- Ina Opperman

South Africa loses about R30 billion in revenue every year due to the illicit trade in cigarettes and liquor according to a new report, almost three times as much as government wanted to collect by increasing VAT.

According to the Transnational Alliance to Combat Illicit Trade (Tracit) report for 2025 published yesterday, South Africa is doing worse now than in 2019 and 2023 in combating illicit trade and other illicit economic activities across sectors including alcohol, tobacco, foodstuffs, agrochemicals, pharmaceuticals, counterfeiting, mining and wildlife trafficking.

Tracit is an independent, private sector initiative established to drive change to mitigate the economic and social damages of illicit trade by strengthening government enforcement mechanisms and mobilising businesses across the industry sectors most affected by illicit trade.

Business Unity South Africa launched the report in partnership with Tracit.

The report is important because it examines the scale, complexity and socioeconomic consequences of illicit trade in South Africa and proposes urgent, coordinated steps to address it.

South Africa was placed at 60 out of 158 countries and fourth out of 47 African countries surveyed for the report.