Business Report

Ramaphosa unveils programme to combat illicit trade in South Africa

Mthobisi Nozulela|Published

President Cyril Ramaphosa has announced a national crackdown on illicit trade, unveiling a new Illicit Economy Disruption Programme

Image: Supplied

President Cyril Ramaphosa has announced a national crackdown on illicit trade, unveiling a new Illicit Economy Disruption Programme aimed at targeting the illegal tobacco, fuel, alcohol and counterfeit goods.

This comes as illicit trade continues to surge across key sectors, with recent reports showing that up to 75% of cigarettes sold in South Africa are now illegal. Last month, IOL reported that BAT South Africa (BATSA) has reached its limit in trying to deal with the illicit cigarette trade in South Africa and is walking away from its production business.

Delivering his State of the Nation Address on Thursday, Ramaphosa said the initiative will bring together law enforcement agencies and the private sector, using data analytics and artificial intelligence to dismantle criminal syndicates operating in high-risk sectors of the economy.

"We are establishing a national illicit economy disruption programme that brings together key state agencies and other stakeholders, including the private sector. Through effective use of data analytics and AI, we will be targeting high-risk sectors like tobacco, fuel, alcohol and other counterfeit products," Ramaphosa said.

He also said that the programme will focus on stronger coordination between government departments, faster investigations, and stricter enforcement of existing laws to ensure that illegal operators are held accountable.

Ramaphosa emphasised that the crackdown is not just about revenue loss, but also about protecting jobs and stabilising the economy.

"Organised crime is now the most immediate threat to our democracy, our society and our economic development."

Ramaphosa also touched on the economy, saying that growth is underway and that government remains focused on creating jobs, supporting businesses, and strengthening key sectors.

“Our economy is growing, and we are taking decisive steps to support investment, create employment opportunities, and stabilise industries affected by illicit trade and other challenges,” he said.

mthobisi.nozulela@iol.co.za

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