Support is growing for a stronger government response to South Africa’s expanding illicit economy, with business leader Allan Besley endorsing calls for a president-led crackdown.
The South African Revenue Service (SARS) recently warned that illegal economic activities including smuggling, tax evasion, and counterfeit trade have surged to an estimated R1.2 trillion, posing a serious threat to the country’s fiscal health.
Besley has now joined SARS in urging decisive intervention from President Cyril Ramaphosa, arguing that only coordinated leadership at the highest level can effectively dismantle entrenched criminal networks.
According to Besley, the illicit economy has grown too large and complex to be tackled through fragmented enforcement efforts. He stressed the need for a unified national strategy that brings together tax authorities, law enforcement agencies, and policymakers.
SARS Commissioner Edward Kieswetter has similarly warned that the issue extends beyond lost tax revenue, describing it as a broader economic and governance challenge.
Both voices highlight the urgency of improving coordination and intelligence sharing to disrupt illegal trade networks operating across multiple sectors.
The rise of illicit trade is placing legitimate businesses under increasing pressure. Companies that comply with regulations are often undercut by illegal operators who avoid taxes and production standards.
This imbalance not only distorts competition but also discourages investment and job creation, further weakening the formal economy.
At the same time, the government is losing billions in revenue each year funds that are critical for public services such as healthcare, education, and infrastructure develo
Besley emphasized that a president led crackdown would send a powerful signal that authorities are serious about tackling the issue. Such an approach, he said, would strengthen accountability and ensure that all relevant agencies work toward a common goal.
With the illicit economy now estimated at R1.2 trillion, the call for decisive leadership underscores growing concern about the long-term impact on South Africa’s economic stability.
As pressure builds from both SARS and the business community, attention is turning to how the government will respond.
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