ABUJA: The illicit trade in cigarettes has stabilised and is showing decline, Deputy Police Minister Maggie Sotyu said.
The Tobacco Institute of Southern Africa maintains that the country leads the continent, and is among the top five markets globally, in the illicit trade of tobacco.
The government loses R4bn annually in excise duty and taxes because of the illicit trade.
The quantity of illicit cigarettes consumed in SA has been declining since 2013. In 2013, a total of 31% of all cigarettes consumed in the country were illicit. This has plunged to 23% in 2015, according to the Tobacco Institute of Southern Africa.
The institute represents tobacco growers, leaf merchants, processors, manufacturers, importers and exporters of tobacco products in SA.
“This reduction is not a coincidence … it is because regional law enforcement agencies, such as the Southern African Regional Police Chiefs Co-operation, have put in effort to address this problem,” Ms Sotyu told delegates attending the annual anti-illicit trade conference in Cape Town on Tuesday.
The conference brings together stakeholders — including law enforcement agencies, revenue and customs organisations, among others — as part of efforts to tackle the illicit tobacco trade in sub-Saharan Africa.
Ms Sotyu said police chiefs in the region consider cigarette a priority crime.
States in the region have held cross-border operations to disrupt smuggling. Such exercises include Operation Usalama (SA, Swaziland and Mozambique), and Operation Tugela, a joint operation with Mozambique, Malawi and Lesotho.
Ms Sotyu said the South African National Defence Force is also disrupting “mules” crossing borders with illicit products.
Tobacco Institute of Southern Africa CE Francois van der Merwe said the declining numbers are encouraging, but warned that organised crime is a moving target that shifts its focus when the going gets tough.
More state collaboration is required to curb the problem, said Mr Van der Merwe.
“We need to (probe) … rogue manufacturers and revoke licences when the law is contravened,” Mr Van der Merwe said.
The World Health Organisation Framework Convention on Tobacco Control, known as the Illicit Trade Protocol, suggests adopting a track and trace system for all products either imported or manufactured across the entire supply chain to curb the scourge.
“We believe that the most critical area of track and trace is an authentication and verification system. The authorities need to be able to trace products back to a manufacturer so that the excise due can be verified.
“There are digital options available which will allow revenue services to monitor manufacturers and control where their product goes,” said Mr Van der Merwe.