Africa-Press – South-Africa. A boom in South Africa’s counterfeit goods market over the past few years has led to billions being lost from the fiscus.
Over the past five years, Customs and Excise Operations teams have made 3,291 seizures of various counterfeit items with an estimated value of over R9.7 billion.
The most common products involved in these seizures were clothing, textiles, leather goods and footwear, followed by tobacco and alcohol.
This was revealed by Finance Minister Enoch Godongwana in response to a recent Parliamentary question from ATM MP Thandiswa Marawu.
Marawu asked the minister to estimate the total annual loss to South Africa’s economy due to counterfeit goods and how this impacts the country’s GDP.
In his response, Godongwana explained that the South African Revenue Service (SARS) has no accurate data on the losses resulting from counterfeit goods or their economic impact.
However, the minister revealed that, over the past five financial years, Customs and Excise Operations teams, in collaboration with Special Campaigns Teams, carried out thousands of seizures.
These teams made 3,291 seizures of counterfeit goods with an estimated value of over R9.7 billion.
He said these seizures were mainly for clothing and footwear products and occurred across the country, in land, air, and sea modalities.
Godongwana’s response comes as the government is looking to clamp down on illicit and counterfeit goods in South Africa, which have seen a boom in recent years.
In his Medium-Term Budget Policy Statement (MTBPS) in November 2025, Godongwana said illicit trade threatens the local economy, endangers consumers, and robs the fiscus of billions in revenue.
He estimated that the government has lost around R40 billion in excise revenue due to the illicit cigarette trade alone since 2020. The same is true for illicit alcohol and fuel.
These products not only threaten government revenue but also present a notable public health risk.
Public safety concern
Godongwana also highlighted the public safety risks that counterfeit products present in his MTBPS.
“Customs officials must fulfil their duty to prevent criminals from dodging taxes and flooding our markets with dangerous products,” he said.
In February 2025, Nedbank released a blog post warning consumers about the health, safety and legal risks counterfeit goods present.
“You might think buying counterfeit goods is harmless, but the trade exposes consumers to many dangers and funds organised crime,” the bank said.
“According to the United Nations Office on Drugs and Crime, the global counterfeit trade is linked to international crime syndicates – so any fake ‘bargains’ you buy from an unscrupulous dealer could be financing other illegal activities like human trafficking and terrorism.”
The bank also highlighted the health risks associated with counterfeit goods, even products that are not consumed like tobacco and alcohol.
Nedbank warned that clothing with harmful chemicals in the dye can cause severe skin irritations that may require hospitalisation.
The bank said fake beauty products are particularly dangerous, as they can cause serious skin reactions, infections, and other health issues.
In addition, Nedbank cautioned that poorly made fake name-brand appliances are a major safety hazard.
“These appliances often do not meet safety standards, increasing the risk of electrical shock, fire, or kitchen accidents,” the bank warned.
“You might save on the price of counterfeit products, but you expose yourself to all these health and safety risks, and more.”
The bank attributed the rise in counterfeit products, in part, to a boom in eCommerce, which has made buying imported goods easier than ever.
Many experts have also pointed to the government’s Covid-19 pandemic lockdown regulations as a key reason for the surge in South Africa’s black cigarette and alcohol markets over the past few years.
Government bans on buying these goods from legitimate sellers during the pandemic pushed many consumers towards illicit alternatives, fuelling the black market, which has only continued to grow since.
Illicit products are also often far more affordable than legitimate products, as sellers are typically not SARS-compliant and do not have to factor excise taxes into the prices they charge consumers.
South African consumers are highly price-sensitive, leading many to favour cheaper illicit goods over their legal, but more expensive, counterparts.
For More News And Analysis About South-Africa Follow Africa-Press
