BAT Says South Africa Losing $1.6 Billion to Illicit Cigarettes

South Africa has become one of the world’s biggest markets for illicit cigarette sales losing around 28 billion rand ($1.6 billion) a year to tax evasion, according to a new report.

While Africa’s most industrialized economy has long struggled to prevent cigarettes being smuggled from neighboring countries, domestic manufacturers have also increased under-the-counter production, spurred by the country’s pandemic-era cigarette ban.