Cape Town – South Africa’s cigarette trade has been infiltrated by criminal syndicates, with three-quarters of the cigarettes sold being controlled by illegal sources, costing the country millions annually.
According to the South African National Defence Force (SANDF), South African loses roughly R28 million because of illicit cigarette trade, while approximately 30 000 vehicles are believed to illegally cross borders into neighbouring countries each year.
“These activities do not only undermine national revenue and economic stability but also place immense pressure on border protection resources,” said SANDF.
According to recent reports, South Africa loses an estimated R28 billion annually due to the illicit cigarette trade, while approximately 30 000 vehicles are believed to illegally cross borders into neighbouring countries each year.#SANDF#JointOperationsDivision#JSCD#MCDMV pic.twitter.com/EMLCo6vo4z
— SA National Defence Force 🇿🇦 (@SANDF_ZA) October 17, 2025
The statement comes after the Joint Standing Committee on Defence (JSCD) and the Portfolio Committee on Defence and Military Veterans (PCDMV) completed an oversight visit to Limpopo, which focused on the ongoing challenges of porous borders and illegal cross-border movements between South Africa and Zimbabwe.
The visit formed part of Parliament’s continued commitment to ensuring effective border management and the protection of national sovereignty.
These activities do not only undermine national revenue and economic stability but also place immense pressure on border protection resources.#SANDF#JointOperationsDivision#JSCD#MCDMV pic.twitter.com/rZZAo7q73n
— SA National Defence Force 🇿🇦 (@SANDF_ZA) October 17, 2025
According to The Citizen, South African Revenue Services (Sars) commissioner Edward Kieswetter told the parliament’s portfolio committee on health that Sars lost roughly R84 million from the illicit tobacco trade.
Sars data showed that between 2020 and 2025, an estimated R40 billion in legitimate tax revenue has been lost to the illicit cigarette trade, as criminal syndicates continue to exploit porous borders, weak law enforcement, and the disruptions caused by the Covid-19 lockdown to strengthen their grip on the market.
“We are confronting industrial-scale criminality involving sophisticated financial flows, front companies and complicit enablers across sectors – including banking and logistics,” said Kieswetter.
The South African Police said that the illegal tobacco market has now become a “national priority threat” to economic stability and state security.
The @SAPoliceService presentation continues, outlining some of the challenges that undermine their efforts in combating illicit tobacco trade @sarstax @EconoCluster @FinanceCluster @GovernanceClus1 @NewsroomAfrica1 @SABCNews @POWER987News @DefenceCluster @JustSecuCluster pic.twitter.com/kQzlHnvJca
— Health-and-social-Cluster (@HealthSocClust) October 22, 2025
During a meeting of the Portfolio Committee on Health, the Health and Social Cluster reported that Deputy Minister of Police, Dr. Polly Boshielo, highlighted key concerns about the growing involvement of criminal syndicates in the illicit tobacco trade.
“She emphasised the need to consider their financiers, manufacturers, distributors, dealers, and consumers, as well as the corrupt practices that obstruct law enforcement efforts.
“Dr Boshielo pointed out that low penalties for offenders worsen the situation. For instance she made mention of two individuals arrested for smuggling where each were fined only R50,000 an amount that enables them to persist in their unlawful activities.
In her presentation to the committee, Deputy Minister of Police Dr Polly Boshielo said key concerns regarding the involvement of criminal syndicates in the operation of illicit tobacco trade. She emphasised the need to consider their financiers, manufacturers, distributors,… pic.twitter.com/0oSbZYh7dr
— Health-and-social-Cluster (@HealthSocClust) October 22, 2025
Follow African Insider on Facebook, X and Instagram
Picture: Pixabay
For more African news, visit Africaninsider.com
Compiled by Anda Tolibadi
