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Four minutes and 28 seconds. That’s the time it took for a News24 reporter to find cigarettes, which were banned under the Level 4 blocking regulations, that were available for purchase at one of many places in South Africa.
With the Level 4 blockade in place and the sale of cigarettes banned, smokers have not had to search for a long and difficult solution, as the offer has been made available on the black market, it seems.
A recent investigation by the Human Sciences Research Council (HSRC), carried out in April, said that “a quarter of people in informal settlements could buy cigarettes.”
This was double the number in formal areas.
Across South Africa, overall, cigarettes were four times easier to access than alcohol, the sale of which is also prohibited, according to the data.
“One in five people in South Africa currently smokes, and about one in ten smokers were able to access cigarettes during confinement. Continuous access to cigarettes in informal settlements could involve informal trade,” said the HSRC.
News24 took to the streets of two of the country’s main metropolitan areas, Cape Town and Pretoria, to discover how readily available tobacco products were found during the shutdown. We also spoke to smokers who had found access points.
Loosies, boxes and cartons
In Cape Town, it took just four minutes and 28 seconds to find the first pack of cigarettes for sale. Another three minutes to find a second box. And, in less than an hour, News24 had found a full box to buy: 10 packs of 20. The brands: Stix, Derby and Sharp.
In Pretoria, it took just 15 minutes for News24 to find its first distributor, after approaching a man in Mamelodi who indicated he had cigarettes by placing two fingers to his lips, gesturing as he took a cigarette.
The man offered five Camel filter packs and two Dunhill Courtleigh mix packs, for R60 each, and said he could buy other cigarettes. These were the only conventional cigarette brands that News24 managed to find in Pretoria.
In Pretoria, News24 traversed CBD, where loose draws were freely available to R5 per cigarette. In Pretoria West, a dealer was selling a brand called Sharp for R70 per package.
In the upscale suburbs of Pretoria East, News24 found a local cafe that had no cigarettes, but was still willing to sell cigars and tobacco (a smokeless tobacco product) at retail prices.
Another local grocery store admitted to selling cigarettes during the shutdown, but said they were out of stock. The cashier informed News24 that they would get Sharp shares later this week.
A parking lot guard at a shopping complex sold a brand called Remington Gold for R70 per package, while a farm security guard sold Sharp and Paul Mall at R65 per package.
A security guard holds a Remington Gold box during the Level 4 crash. (Image: Alex Mitchley / News24)
In Cape Town, News24 sought to buy cigarettes at service stations, franchised by the major retail gasoline chains.
Under the counter
At more than half a dozen sites, staff said cigarettes were either unavailable or “prohibited”. The shelves of cigarette stocks appeared empty, at the cashier stands above or behind service personnel. In several places, notices were placed informing customers about the unavailability of cigarettes.
At major supermarket and retail chains, cigarettes were also unavailable. There were no exceptions to this.
But third, in non-franchised supermarkets or in smaller commercial stores, cigarettes were widely available. They were generally not found in major retail centers, but in smaller retail blocks, in communities.
In none of these stores were cigarettes openly available.
But for buyers willing to ask, the staff behind the boxes then paused, evaluated people in sight or hearing, and then asked for a preference on the brands. These are generally numbered only two or three. Some stores offer only one brand.
Cigarette boxes were taken from under the counter, literally. The cost per box ranged from R30 to R45.
In a store, the staff member asked, “Would you like a box or a cardboard?”
The price was quoted at R400 for a carton of 10 boxes of 20 cigarettes. The cardboard was taken from a warehouse at the back of the store, and wrapped in newspaper, and placed in a package, to hide the contents.
However, the store would only accept cash, and refused to collect any card payments.
Fourth, cigarettes were occasionally found in small makeshift stores, which generally sell a limited range of products.
Cigarettes bought by smokers and supplied to News24 after investigation. (Image: Alex Mitchley / News24)
WhatsApp lists
Multiple smokers in the Pretoria area, who did not stock up on cigarettes before the shutdown began on March 27, told News24 that during the first two weeks of shutdown, many renowned grocery stores were still selling their surplus stocks.
After conventional brands ran out, these stores stopped selling. However, some stores managed to obtain unconventional cigarettes, including brands like Sharp and RG.
A smoker said he was able to buy Stuyvesant Blue for a while, but when it was over, he started buying Sharp and RG from auto guards, security guards, and gasoline pump attendants in his area.
Cigarettes purchased during confinement by a smoker in Cape Town. (Image supplied to News24)
Two other smokers managed to find people who distributed cigarettes per box, and also smuggled where you could buy alcohol at a higher price.
According to these smokers, they are sent a list of available stocks, where conventional cigarette cartons cost R1,000 to R1,500 for one carton, sometimes three times the price of what a carton normally costs.
The same contacts have also been selling Sharp cardboard boxes for between R500 and R800 per box.
Other smokers told News24 that they had contacts in clubs and bars that had been selling their remaining shares.
R1.7 billion lost in tax revenue
During a briefing on the impact of Covid-19 on revenue collection this week, SA Revenue Service Commissioner (SARS) Edward Kieswetter said excise duties had come down and about R1.7bn had been lost. in tax revenues from cigarettes and alcohol The closure began.
Kieswetter said SARS was concerned about the loss of revenue from these sin taxes, but was more concerned with driving the illicit sale of cigarettes and alcohol.
“Illegal trade and criminal economic activity is a scourge, which undermines not only our revenue collection, but it distorts our local economy and deprives South Africans of honest and harsh employment opportunities,” said Kieswetter.
“We cannot allow criminals to continue to prosper in our economy and, sadly, when we have the Covid-19 misfortune, criminals use this as an opportunity to practice their trade.”
Meanwhile, HSRC research “highlights the need for tobacco control interventions to prevent smuggling and smuggling.”
“The results also call for better regulation of tobacco sales in informal markets.”
The HSRC recommended that a health promotion strategy be required, including “health behavior change, health literacy, information and policy.”
‘No products are manufactured during blocking’
British American Tobacco (BAT) owns conventional brands such as Camel, Dunhill, Stuyvesant Blue and Paul Mall.
British American Tobacco Southern Africa (BATSA) chief of external affairs Johnny Moloto said: “BATSA did not manufacture or sell tobacco products under the Level 5 blockade.
“Our factory and supply chain were closed and secured. We have no direct evidence that genuine BAT products are illegally sold during the closure. We have not supplied any products to the South African market since the closure began.”
Carnilinx, owned by controversial businessman Adriano Mazzotti, owns unconventional brands like Shasha and Derby.
The company also replied that it was under strict blockade.
On the availability of its brands, the company said: “Carnilinx may have stocks of distributors and retailers who may choose to break the law and sell or distribute cigarettes. It is not our business to monitor what they do with the products that were sold and delivered to them before closing. “
But the company warned: “Our biggest concern regarding this is the counterfeits produced in Mozambique, Zimbabwe and Lesotho that are reaching South Africa through the corrupt and porous borders. We have reported to the authorities but have not acted.”
Ban ‘nonsense’
The company lashed out at the tobacco ban, saying “11 million smokers have become criminals.”
“Not recognizing cigarettes as an essential element makes no sense, as it is a basic requirement for smokers to live comfortably, just like soda, chips, cookies, chocolates, hair care products , etc.
“As a South African company, we have complied with all laws [under duress] – We have had SARS and SAPS visiting our facilities day and night to ensure and enforce compliance and we have never been found to be at fault. “
Earlier this week, Mazzotti denied “outrageous claims” that he in any way influenced the Cooperative Governance Minister Nkosazana Dlamini Zuma and the government to tighten the ban on tobacco sales.
He said his involvement in an urgent judicial challenge to the government’s smoking ban makes it “obvious” that the claims that he is involved in illicit tobacco trafficking are “blatantly false,” News24 reported.
When asked to comment, Philip Morris South Africa (PMSA) sent an email to News24, saying: “PMSA complies and continues to fully comply with applicable laws, including blockade regulations, and supports the government’s fight against Covid- 19.
“Unfortunately we learned from media reports that the illicit trade in tobacco products is increasing significantly despite all the efforts of the police authorities.
“The illicit tobacco trade costs the South African government approximately R10 billion per year in lost taxes according to the South African Tax Service. Last month alone, the low recovery from tobacco use was around R300 million,” said the cigarette maker.
“At PMSA we are committed to combating illegal trafficking and providing information to law enforcement authorities that are empowered to combat illegal trafficking. Obviously, the tobacco industry has no power to confiscate or confiscate illegal assets.”
“Our primary focus right now is the health and well-being of our employees, their families, and the communities in which we operate,” he wrote.
Gold Leaf Tobacco, which owns Sharp and RG, and Pacific Cigarette Company, which owns Remington Gold, did not respond to a request for comment at the time of publication.
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