JOHANNESBURG – Cigarette smuggling exploded in South Africa during its nearly five-month ban on legal sales under anti-COVID-19 measures, and even though legal sales have been re-allowed, many in the tobacco industry will continue.
South Africa has imposed an unprecedented ban on preventing COVID-19-related respiratory disorders, but few smokers have been deterred, thanks to the burgeoning illegal market.
There was an avalanche of cigarette sales when the ban was lifted on August 18, however, some South African cigarette brands say they are concerned that the expansion of the illegal market during the blackout era will have a lasting effect and lower legal sales.
South Africa “has the world’s largest illegal tobacco industry,” said British American Tobacco, the world’s largest tobacco group, which claims to have an estimated 78% of legal cigarette sales in South Africa.
Hours before the official lifting of the ban came into force, BAT called on South Africa to “urgently” ratify the World Health Organization’s protocol for the illicit tobacco industry.
During South Africa’s ban on the sale of cigarettes, about 93% of smokers bought their cigarettes from illegal vendors, according to a Cape Town University published in July.
The large scale of illegal cigarette sales in South Africa was one reason why another cigarette producer, Japan Tobacco International, stopped manufacturing here, according to Bongani Mshibe, JTI’s communications director in South Africa. He said during the ban illegal trading “would have grown in terms of distribution, in terms of their availability.”
Most illegal cigarettes in South Africa are smuggled from Zimbabwe, which grows tobacco and makes cigarettes.
The Beitbridge border crossing, 500 kilometres (310 miles) north of Johannesburg, is known as Zimbabwe’s main access point for illegal cigarettes. Generally, one of Africa’s busiest border crossings, the border crossing has been closed to non-essential traffic since 18 March.
Aware of the smuggling trade, South Africa built a fence 40 kilometers (25 miles) long and 1.80 meters (5.9 feet) high in April to deter crossings of individuals potentially carrying COVID-19.
But neither the fence nor the Patrols of the South African army seemed to be effective in hindering smuggling. Just weeks after its construction, the $2.1 million fence was riddled with holes made through smugglers, who ridiculed it as a “joke.”
“I cross the border almost every day, twice a day,” said Jonathan, a smuggler in his 20s, in July. “HOW do you see? It takes five minutes to make your way. It’s absolutely unnecessary. You can fix it, we’re going to cut it. They’re going to fix it again and we’re going to cut it. He refused to make his genuine call to avoid arrest.
Less than two months after the final touch of the fence, more than 50 holes were noticed in a 20-kilometre stretch.
During the ban, illegal cigarettes were discovered without problems on the streets of South Africa, especially in municipalities, but occasional vendors also proposed new tactics to succeed customers.
In the most aflofious suburbs, citizens shared phone numbers to receive cigarettes in their homes. Following President Cyril Ramaphosa’s announcement that the ban had been lifted, one of those well-organized networks with several hundred consumers sent a message selling illegal cigarettes, even providing a partial refund for certain products.
Smuggling activity in Beitbridge has declined particularly while profits have fallen overnight, according to a smuggler.
“At this time, other people don’t cross because they don’t value each other,” said Hopewell, who spoke on anonymity condition when arrested. During the ban, he said, he can simply buy a box of 50 cartons from a local cigarette logo for the equivalent of 5,000 rands in Zimbabwe, smuggle it across the border and sell it for 11,000 rands.
“Now they’re promoting only 4,000 rand,” he says.
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