Empty gin bottles and other items which were seized by police during the operation against illegal alcohol production.
Image: SAPS
The Drinks Federation of South Africa (DF-SA) has welcomed President Cyril Ramaphosa’s recognition of illicit trade during his State of the Nation Address last week.
The President announced a national illicit economy disruption programme, which will be supported by data analytics and multi-agency coordination - a move the DF-SA describes as “an important and necessary step in protecting South African consumers, legitimate businesses, and the fiscus.”
Illicit alcohol, the federation notes, “undermines law-abiding traders, deprives the country of billions in tax revenue, and operates entirely outside the framework of responsible trade and lawful oversight.”
While DF-SA applauds the president’s prioritisation of illicit trade as a policy issue, it stresses the importance of effective implementation. “We are particularly interested in the establishment and implementation of the relevant levers that would assist in alleviating the illicit alcohol problem. We anticipate that this will happen in close collaboration with the alcohol industry for added effectiveness,” the federation said.
According to DF-SA, understanding the dynamics of the alcohol market, including the drivers of illicit growth, will be crucial for the success of the programme. “We therefore believe that collaboration is a necessity for clamping down on the illicit market,” the statement added.
The latest research on illicit market trends indicates that one in every five alcoholic drinks consumed in South Africa is illicit, resulting in a tax loss of R16.5 billion to the fiscus.
DF-SA emphasised its support for responsible alcohol production, sale, and consumption within a well-regulated framework. At the same time, it stressed the need for stronger enforcement of existing regulations. “Protecting the integrity of the licensed, legal, and compliant market is essential to safeguarding consumers and ensuring a fair and responsible trading environment,” the federation said.
The federation also announced the formation of the Responsible Trade Task Force (RTTF), which aims to provide a platform for structured engagement between industry and government to support national efforts to address illicit trade. DF-SA noted that while the industry will collaborate, “enforcement remains the responsibility of the relevant authorities.”
The organisation concluded that it looks forward to “working closely with government and law enforcement agencies to support the national effort to combat illicit trade, protect communities, and ensure that legitimate businesses can operate within a fair, responsible, and well-regulated environment.”