Illicit trade in South Africa is putting an estimated R67 billion in direct tax revenue and about 87,000 jobs at risk, according to the Consumer Goods Council of South Africa.
The council’s Abraham Nelson told eNCA that the illegal market affects a wide range of goods, including cigarettes, alcohol, clothing, food and pharmaceuticals.
Finance Minister Enoch Godongwana said illicit trade threatened consumers, jobs and legitimate businesses. He was speaking as government and industry renewed calls for stronger enforcement against criminal supply chains.
The trade includes products that are smuggled, counterfeit, stolen or sold outside tax and regulatory systems. Legitimate companies say this creates an uneven market because illegal operators avoid duties, safety requirements and other costs.
The R67 billion figure is an industry estimate and has not been presented as a final audited tax assessment. It nevertheless points to the scale of the concern among businesses whose products compete with untaxed or counterfeit goods.
Authorities including the South African Revenue Service, police and customs officials have run enforcement operations targeting illicit cigarettes, alcohol and counterfeit merchandise. The challenge extends from border control and manufacturing to informal and online retail channels.
The Consumer Goods Council says closer coordination between government agencies and businesses is needed to disrupt supply networks and protect legitimate employment.
Government has not announced a new national enforcement package linked to the latest estimate. Existing investigations and seizures remain subject to the relevant criminal and customs processes.
