He warned that illegal imports and unregulated trading are key contributors to the country’s ongoing de-industrialisation and stagnating economic growth.

Speaking at the official launch of the second Transnational Alliance to Combat Illicit Trade (TRACIT) Report, October emphasised the economic damage caused by illicit activity, particularly in the tobacco and alcohol sectors.

“The South African economy has lost nearly $1.7 million due to illicit trade in tobacco and alcohol alone,” he said.

October highlighted how unregulated trade undermines the manufacturing sector, which is crucial for job creation and sustainable development. “Illicit trade is not just a revenue loss issue, it’s a de-industrialisation issue. It’s wiping out sectors of our economy,” he added.

He also stressed the importance of formalising the township economy and integrating informal businesses into the regulatory framework to protect consumers and small traders alike.

“You must bring people into the mainstream and they must be registered,” said October. “I think we must move forward now. There used to be a big deregulation problem, people thought the informal sector is good and should be left alone. But when we tried to regulate the spaza shops 10–15 years ago, there was an outcry.”

He explained how the move was initially seen as a threat to small businesses. “People said: ‘How can you regulate small business? You’re going to kill it.’ But then came food safety standards and the need for real regulation of spaza shops,” he said.

October urged government and business stakeholders to prioritise policy reform, enforcement, and capacity-building to curb the illicit economy and reinvigorate South Africa’s industrial base.

--ChannelAfrica--