Article by Kotie Geldenhuys
Photos/images courtesy of FreePik and SAPS
Illicit cigarette trading has become one of the most profitable and low-risk crimes in South Africa. With minimal production costs, a few years ago as low as R2 for a pack of 20, and the ability to sidestep hefty taxes, smugglers are raking in profits that rival, and in some cases surpass, those of drug trafficking. Unlike narcotics, illegal cigarettes are easy to transport, virtually undetectable by sniffer dogs and carry far lighter penalties. While drug smugglers face imprisonment, those caught with illicit tobacco often walk away with nothing more than a fine (Pauw, 2020).
The illicit cigarette trade in South Africa is not merely a matter of smuggling tobacco; it is part of a much larger network of illegal activities that undermine national security and economic stability. Lt-Col Wouter Diamond, from the National Counterfeit Goods Unit told Servamus that 70% of cigarettes in the country are illicit. According to the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) (2018), the distribution, sale or manufacturing of cigarettes becomes illicit when it is conducted in contravention of legal restrictions or when required taxes are evaded. Lt-Col Diamond said that counterfeit cigarettes account for only 1% of the illegal cigarettes in the country. He emphasised that most illicit cigarettes are not counterfeit but are sold at prices below the proposed legal minimum.
[This is only an extract of an article published in Servamus: July 2025. This article is available for purchase.]