South Africa loses billions of rands each year to the illicit economy. Tax Justice South Africa (TJSA) says President Cyril Ramaphosa must act. The organisation was responding to the President’s 2026 State of the Nation Address.
He announced a National Illicit Economy Disruption Programme and plans to use AI and data analytics. High-risk sectors include tobacco, alcohol and fuel.
“We must swap slogans for substance,” said TJSA leader Yusuf Abramjee. “Strong words are not enough. We need visible action. Shut down illegal factories. Prosecute the masterminds. Restore billions to the fiscus.”
TJSA is calling for dedicated resources for SARS’ illicit trade task team. Investigators must be specialised. Technology must track supply chains. SAPS units must be trained to build cases against organised criminal networks. The NPA must prosecute kingpins, not just street vendors.
Abramjee said cigarette manufacturing is a good place to start. Tax evaders control 75% of the market. The country loses around R30 billion a year to illicit cigarettes. “Manufacturers must allow SARS to install CCTV in factories,” he said. “This is responsible governance, not an invasion of privacy.”
Illicit alcohol sales have grown by 55% since 2017. Counterfeit pharmaceuticals, electronics, clothing and food are also widespread. The Consumer Goods Council estimates the illicit economy is roughly 10% of GDP.
“These illegal operations feed organised crime,” Abramjee said. “They destroy jobs. Hollow out industries. Erode trust in the rule of law. Every month of delay costs more jobs and more revenue. The country cannot afford another year of talk. It is time for concrete action.”
