KwaZulu-Natal Premier, Honourable Thamsanqa Ntuli, held a productive engagement with the leadership of the Drinks Federation of South Africa, with discussions focusing on the growing threat posed by illicit goods, particularly illicit alcohol, to the economy, legitimate businesses and public health.
During the engagement, the Federation raised serious concerns about the increasing prevalence of illicit alcohol and other illicit products in South Africa.
According to research presented during the meeting, illicit alcohol production and sales were valued at approximately R25 billion, while the country was estimated to have lost R16.5 billion in 2024 as a result of the illicit alcohol trade.
Premier Ntuli expressed deep concern about the scale of the challenge and said the fight against illicit goods should become a major priority for government, law enforcement agencies, industry and society.
He warned that the illicit economy undermines legitimate businesses, suppresses economic growth, deprives the fiscus of much-needed revenue and exposes communities to serious health and safety risks.
The Premier said businesses that operate within the law should not be forced to compete with illicit operators who evade regulatory, tax and compliance requirements.
“We must unite and intensify the fight against illicit goods. This is not only an economic challenge; it is also a serious public health and law-enforcement concern. We need all stakeholders to come together and develop a comprehensive response that protects our economy, our businesses and our communities,” said Premier Ntuli.
Premier Ntuli called for organisations, industry bodies, law-enforcement agencies and other stakeholders involved in combating illicit trade to work together in developing a coordinated response.
As part of this approach, the Premier proposed the convening of a summit or roundtable discussion that would bring together key stakeholders to identify practical and sustainable interventions to address the growing illicit economy.
He emphasised that effective action would require stronger coordination, information-sharing, enforcement and cooperation between government and the private sector.
Premier Ntuli further noted that KwaZulu-Natal’s economic potential cannot be fully realised while legitimate businesses continue to face unfair competition from illicit operators.
The engagement reaffirmed the Provincial Government’s commitment to protecting legitimate economic activity, strengthening regulatory compliance and working with industry and law enforcement to safeguard communities from the broader consequences of illicit trade.
KwaZulu-Natal, Inspiring New Hope.
Follow the KZN Provincial Government
For additional images, videos and up-to-the-minute content, follow the KwaZulu-Natal Provincial Government on social media:
Facebook: www.facebook.com/KZNGOV
X/Twitter: www.x.com/kzngov
Instagram: www.instagram.com/kzngov