Illicit cigarette trade blamed for factory closure

THE planned closure of a British American Tobacco South Africa manufacturing plant has reignited warnings that South Africa’s failure to curb the illicit cigarette trade is destroying jobs, draining public revenue and undermining the rule of law — with consequences that extend to the Western Cape.

- MURRAY SWART

British American Tobacco South Africa (Batsa) announced it will shut its Heidelberg factory in Gauteng by the end of the year, ending local cigarette production after years of declining legal sales blamed on the rapid growth of the illicit market.

The decision places about 230 jobs at risk and threatens the livelihoods of workers’ families and surrounding communities.

Tax Justice SA said the closure was a predictable outcome of the state’s failure to act decisively against organised criminal networks operating in the tobacco sector.