The Drinks Federation of South Africa (DF-SA) commends the Minister of Finance’s unequivocal identification of the illicit alcohol trade as a critical threat to South Africa’s economy in his mid-term budget speech.
“South Africa faces a problem of illicit trade that threatens our economy, endangers consumers, and robs the fiscus of billions in revenue,” the Minister stated. “The growing markets for illicit cigarettes and alcohol pose serious risks to public health and undermine legitimate businesses.”
This declaration aligns with the stark findings of our sector. According to an independent 2025 study by Euromonitor International, commissioned by DF-SA, as of 2024, an estimated 18% of all alcohol sold in the country is illicit, directly costing the fiscus R16.5 billion in lost tax revenue—a dramatic increase from R6.4 billion in 2017.
“The Minister’s words validate the urgent warnings from our industry and signal a crucial step forward: the illicit alcohol market is not a peripheral issue; it is a full-blown national crisis,” said Angela Russell, CEO of DF-SA. “Every illicit bottle sold represents a direct drain on public revenue, an unfair disadvantage for compliant, job-creating businesses, and in the instance of counterfeit alcohol, a threat to consumer safety.”
Illicit alcohol in South Africa is not merely a compliance concern—it is illegal and forms part of the country’s wider organised crime economy. The Euromonitor research shows that illicit alcohol takes several forms, including untaxed products, products that are incorrectly classified for tax purposes, and a rapidly growing category of counterfeit or “fake” alcohol. Counterfeit alcohol now accounts for 31% of the total illicit market and poses serious health risks. Among those surveyed in the Euromonitor research, 49% knew someone who became ill, while 29% knew someone who lost their life due to consuming illicit alcohol.
This is a battle we are fighting on a global front. According to the Transnational Alliance to Combat Illicit Trade (TRACIT), illicit alcohol results in US $3.6 billion in global fiscal losses annually, reflecting a growing trend of criminal syndicates exploiting enforcement gaps worldwide.
“This is not just a revenue issue; it is a sophisticated, organised, and transnational criminal enterprise that demands a strategic and unified national response,” said Russell.
In response, DF-SA is championing a collaborative, multi-stakeholder offensive, grounded in reliable data, strengthened enforcement, and a shared commitment to public safety and economic growth. We stand ready to partner with government to turn the tide.
“We must unite across all sectors — government, industry, retailers, enforcement authorities, researchers, and civil society and leverage international partnerships,” added Russell. “The illicit alcohol crisis mirrors dangerous global trends and requires a coordinated national strategy to defeat it.”
DF-SA formally invites the Minister of Finance and the National Treasury to convene a dedicated dialogue with the alcohol industry. Together, we can develop targeted, long-term solutions that safeguard South African consumers, secure vital tax revenues, and ensure a fair and sustainable marketplace.
As the festive season approaches, DF-SA reminds all consumers and traders that responsibility doesn’t take a holiday. We urge the public to remain vigilant and purchase alcohol only from licensed, reputable retailers.
