Experts have suggested partnerships between government and business should be used to combat illicit trade in South Africa. The Transnational Alliance to Combat Illicit Trade 2.0 Report reveals that the South African economy loses nearly R30 billion annually from illicit trade in tobacco and alcohol alone.
Government officials have also noted that illegal imports and illicit trading are key drivers of de-industrialization, which ultimately undermines economic growth.
Former Director-General of the Department of Trade, Industry and Competition Lionel October has called for the addressing of illicit trade to be treated as a national priority.
October says illicit trade surged significantly after 1994, playing a major role in the collapse of the textile industry during the 1990s.
Speaking at the official launch of the second report, a collaborative effort between Business Unity South Africa and TRACIT, he says formalizing the township economy is also key.
