WORKING PAPER
The Illicit Tobacco Trade in Zimbabwe and South Africa: Impacts and Solutions MARCH 2019
INTRODUCTION
Simone Haysom is a Senior Analyst at the Global Initiative against Transnational Crime, an expert network that provides analysis, convening, and programmatic activities with the objective of achieving a coherent and effective international policy response to transnational organised crime
SIMONE HAYSOM
T
his study was conducted to explore how the illicit trade in licit goods supports organized crime, corruption, and erodes state structures. The illicit tobacco trade in southern Africa occupies a prominent place in southern African politics, due to its prominent role in the ‘state capture’ scandals that characterized politics in South Africa between 2013 and 2018. Indeed, the illicit tobacco trade occupies a prominent place in public debate in South Africa, both about crimes that may have been committed in the last five years, and about how the current administration responds to the illicit economy right now. Conflict—overt and covert, violent and non-violent—over who makes the most money from illicit tobacco, who controls it, and how the state responds to it, is a major feature of South Africa’s, and to a lesser extent Zimbabwe’s, political economy. This conflict now takes places in the midst of huge political transitions within the ruling parties of both countries. This case study maps the key dimensions of the illicit cigarette trade in Zimbabwe and South Africa, including the key actors, the pathways of trade and the accompanying ‘modalities’ of criminality, as well as other important dimensions of the illicit cigarette market in southern Africa. It then identifies ‘good-faith actors,’ primarily in South Africa, whose positions could be strengthened by policy and technical interventions, explores opportunities for such intervention, and assesses the practical solutions that can be applied to combat illicit trade and tax evasion in the tobacco industry. The paper contributes to expanding awareness among policymakers and the public of the nexus between the illicit trade in licit goods, corruption, and organized criminal networks.