Local manufacturers fuel illicit cigarette trade in South Africa, warns BAT

BRITISH American Tobacco South Africa (BATSA) has pointed the finger at local manufacturers for exacerbating the illicit trade in cigarettes.

- TAWANDA KAROMBO

Their claims come on the back of a study released by the company, shedding light on the alarming prevalence of illegal cigarette sales in the country.

This issue, which was once largely perceived as a cross-border problem, has now morphed into a serious domestic challenge that threatens the economy and public health.

Speaking after the release of a BATSA-commissioned study into the pricing of tobacco cigarettes in South Africa on Tuesday, Johny Moloto, the company’s head of corporate and regulatory affairs said illicit trade in cigarettes was now a domestic concern for the country. “This is no longer just a cross-border issue. This is a homegrown crisis, fueled by local manufacturers who continue to operate with impunity while the state loses billions in revenue,’ said Moloto.

Illicit trade in tobacco cigarettes is worsening in South Africa, with over 70% of retail outlets selling the products below the mandated minimum tax price.

Commissioned by British American Tobacco (BAT) and independently conducted by Ipsos, the 2025 report outlines alarming national trends in the illegal tobacco trade, identifying South African manufacturers as the primary culprits behind the growing black market.