Illicit trade in South Africa

South Africa is one of the largest and most diversified economies in Africa, and it is the only African country represented in the G20 and BRICS economic groupings. However, despite being an important contributor to growth and trade regionally and on the global economic stage, it also faces challenges from illicit trade on multiple fronts. For South Africa to restart and grow its economy, it must formulate policies and implement programs that deter and preclude illicit traders from consolidating roots in the post-pandemic economy. Left unaddressed, illicit trade and its associated criminal activities will continue to rob the government of essential tax revenue and deter investments in the country.

Featured Report

South Africa's Fight Against Illicit Trade: A Strategic Review (2025)

The TRACIT Report on South Africa's Fight Against Illicit Trade: A Strategic Review (2025) reviews the state of illicit trade in the country and evaluates South Africa’s performance using findings from the 2025 Illicit Trade Index—a global framework measuring resilience to illicit trade across 158 countries. This updated assessment provides policymakers with insights into evolving risks, implementation progress, and areas requiring renewed focus.

Associated materials:

Featured Events

6 May 2025 - TRACIT, in collaboration with Business Unity South Africa (BUSA), launched the report "South Africa’s Fight Against Illicit Trade: A Strategic Review 2025", outlining how illicit markets erode tax revenues, displace legitimate businesses, and undermine governance and the rule of law. The high-level event convened government, industry, and enforcement leaders.

Event program

30 May 2023 - Business Unity South Africa hosted event on “Tackling South Africa’s Illicit Economy – a Threat of National Importance”. This forum gave TRACIT the opportunity to release its report on illicit trade in South Africa among representatives from both the government and the private sector.

Summary of event and outcomes

Past Publications

Organized Crime, Corruption and Illicit Trade: Spotlight on South Africa (February 2023) shows that illicit trade is one of the biggest threats to stability and economic growth in South Africa. In providing an update on longstanding structural challenges, the report underscores how recent inflationary pressures, high levels of unemployment, widespread corruption, sophisticated organized crime networks and lingering effects from the COVID-19 pandemic have turbo charged the illicit economy.
lllicit Trade in South Africa: Challenges and Solutions (October 2019), originally presented at the 2019 International Law Enforcement Intellectual Property Crime Conference in Cape Town, hosted by INTERPOL, delves into South Africa's situation and highlights a number of regulatory and legal mechanisms that the government can implement to better control and combat illicit trade.

Media Center

Read the Daily Investor article on Minister Schreiber’s call to fund the BMA as the best investment to curb illicit trade, echoing TRACIT’s findings
Read TRACIT's letter to Dr Duncan Pieterse, Director-General, National Treasury, Republic of South Africa, on addressing the impact of illicit alcohol trade through strategic excise tax policy adjustments
Moneyweb Podcast: Illicit trade is ‘top 5’ risk to SA economy
South Africa suffers ‘staggering losses’ of around R100 billion a year due to illicit trade, counterfeiting

Illicit Trade in South Africa

Past Publications