File: Foam coats the glass of a draft beer. AFP/Fred Tanneau
JOHANNESBURG - Independent research shows that nearly one in five alcoholic drinks sold in the country is illegal.
According to the Beer Association of South Africa (BASA), the scale of the trade has grown rapidly, with illicit alcohol volumes increasing by more than 55 percent since 2017.
BASA CEO Charlene Louw said the economic cost of the illicit alcohol trade is substantial.
"Estimates indicate that the government lost approximately R16.5-billion in excise revenue in 2024 alone due to illegal alcohol sales.
"This loss also extends to unpaid VAT and reduced economic activity, depriving the fiscus of funds that could otherwise support public services such as healthcare, education and infrastructure," Louw said.
Illicit trade also places immense pressure on legitimate brewers, distributors and retailers.
Louw said by selling untaxed products at far lower prices, illegal operators undercut lawful businesses, distort market competition and erode trust in established brands.
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The resulting decline in legal sales threatens jobs across the alcohol value chain, from manufacturing and logistics to retail and hospitality, where thousands of workers depend on a stable, regulated industry for their livelihoods.
Beyond its economic impact, illicit alcohol poses serious dangers to consumers.
"Illicit alcohol is unregulated and unsafe; it often contains harmful contaminants such as methanol, heavy metals and other toxic substances," Lou said.
"These can cause severe illness, organ failure, blindness or death. Consumers have no way of knowing what’s in these products, unlike regulated alcohol, which meets strict safety standards."