South Africa: Tobacco lobby continues legal battle despite lifting of sales ban

The Fair Trade Independent Tobacco Association (Fita) in South Africa has said it will continue its legal action[1] facing the government regarding the ban on tobacco sales despite the easing of measures linked to the announced gradual deconfinement.

On Saturday, August 15, 2020, South African President Cyril Ramaphosa confirmed that as of August 17, the country will embark on a gradual deconfinement with the removal of "almost all restrictions" on economic activities, including the sale of tobacco and alcohol.

The tobacco industry has been very critical[2] regarding the ban during the lockdown period. Many companies such as British American Tobacco South Africa (Batsa), Philip Morris South Africa (PMSA) and Japan Tobacco International (JTI) as well as smaller local tobacco companies had urged the government to reverse the ban while taking legal action to have it overturned. According to the Fair-Trade Independent Tobacco Association (FITA)[3], the ban on the sale of tobacco products would harm both the industry and individuals and would have no basis.

The court dismissed the tobacco industry's claim[4], rejecting FITA’s argument that tobacco products should be considered “necessary.” The judges also noted that FITA failed to take into account the context of the sales ban, which was part of the government’s rapid response to the pandemic. Despite this decision, FITA is considering seeking damages from the government for revenue losses caused by the sales ban.

The argument of illicit trade to counter the measure[5]

The tobacco industry has argued that the ban would force consumers to break the lockdown and that the measure would reduce government revenue. It has also argued that the illicit tobacco trade is fuelling it. Yet South African tobacco companies do not appear to have slowed down cigarette production or exports since the ban began.

Telina Snyckers, an independent expert on illicit trade and a former executive with the South African Revenue Service, said huge quantities are exported to neighbouring countries such as Botswana and Namibia.[6], with volumes far exceeding demand in these markets. These are then illegally redistributed in part to South Africa. In 2019, South Africa exported 3,700 tonnes of cigarettes to Namibia (approximately 300,000 kg per month). In May 2020, at the time of the country's national cigarette ban, these exports more than doubled to 733,653 kilograms of cigarettes for Namibia. [7].

  Keywords: South Africa, Lobby, Tobacco, illicit trade ©Generation Without Tobacco

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[1] FITA to persist with court action on tobacco ban, Internation Independent Online, August 15, 2020, accessed August 17, 2020 [2] South Africa: Cigarette companies' opposition to government measures, Generation Without Tobacco, July 16, 2020, consulted on August 17, 2020 [3] In South Africa, cigarette companies oppose COVID-19 measures, Generation Without Tobacco, April 27, 2020, consulted on August 17, 2020 [4] Justice: New defeat for the tobacco industry in South Africa, Generation Without Tobacco, June 29, 2020, consulted on August 17, 2020 [5] Big Tobacco accused of hypocrisy over South Africa ban, Africa Times, July 22, 2020, accessed August 17, 2020 [6] Ruan Jooste, Dirty Tobacco: How the cigarette ban backfired, Daily Maverick, July 30, 2020, accessed August 17, 2020 [7] Edward-John Bottomley, Namibia should have a huge pile of cigarettes. Mysteriously, they are nowhere to be found, Business Insider South Africa, August 3, 2020, accessed August 17, 2020 National Committee Against Smoking |