Gauteng Government responding to disingenuous DA exploitation of the British American Tobacco South African (BATSA) closure

The Gauteng Provincial Government has noted with disappointment the statement issued by the DA regarding the planned closure of the British American Tobacco South Africa (BATSA) Heidelberg facility due to the illicit cigarette trade.

The DA’s statement blames Premier Panyaza Lesufi and the Gauteng Provincial Government for what is a complex, national crisis of illicit trade. In response, the Gauteng Provincial Government released a statement asserting that the DA’s accusation is not only factually misleading but also reveals a staggering hypocrisy in its policy position and political responsibilities. The provincial government further noted that the DA itself is a partner in the national governance structure and has failed to address the root causes of the issue.

British American Tobacco South Africa (BATSA) announced last week that it will close its operations by the end of 2026, resulting in the loss of 230 jobs. BATSA has long warned against the illicit cigarette trade, highlighting its severe financial impact since 2017.

A study conducted by Tobacco Induced Diseases, titled “Illicit trade in South Africa: New evidence from nationally representative surveys,” reveals that the illicit cigarette trade in South Africa grew from 30% in 2017 to 60% in 2021. The survey also found that 75% of cigarettes sold in informal shops (spaza shops) are illicit, and over 90% of these illicit products are produced by local manufacturers.

The Gauteng Provincial Government emphasized that the SAPS Provincial Counterfeit Unit, in collaboration with other law enforcement agencies, continues to work tirelessly in conducting operations against illicit and counterfeit goods.