R100 Billion a Year Lost to Illicit Trade Must Top Agenda as Andy Mothibi Begins Tenure as NDPP – Tax Justice SA
Pretoria – As Andy Mothibi steps into his new role as South Africa’s National Director of Public Prosecutions, starting his first day in office on 1 February 2026, anti-corruption advocates are urging him to prioritise the fight against illicit trade, which is draining the economy of more than R100 billion every year. This staggering loss, through smuggled goods, counterfeits, and tax evasion, robs the government of funds needed for schools, hospitals, and safety nets, leaving ordinary families to bear the brunt. With Mothibi’s background in tackling graft at the Special Investigating Unit, many hope his leadership will deliver the decisive action needed to stem this tide and hold criminal networks accountable.
Andy Mothibi’s Appointment: A New Era for the NPA
Andy Mothibi, aged 63, was appointed by President Cyril Ramaphosa on 6 January 2026, following recommendations from a seven-person advisory panel. He takes over from Advocate Shamila Batohi, whose seven-year term ended in 2025. Mothibi’s selection came after several other candidates’ recommendations were turned down, highlighting the careful process behind his choice. As head of the Special Investigating Unit since 2015, Mothibi has led probes that recovered millions in misspent public funds and exposed corruption in government departments.
His tenure as NDPP is expected to last around two years before mandatory retirement, giving him a focused window to make an impact. The Justice Committee chairperson has welcomed the appointment, noting Mothibi’s proven track record in anti-corruption work. For everyday South Africans frustrated with slow justice in graft cases, Mothibi’s experience offers hope – he understands the challenges of building strong cases against powerful figures, potentially speeding up prosecutions that have languished for years.
The Scourge of Illicit Trade: R100 Billion Annual Loss to the Economy
Illicit trade is robbing South Africa of over R100 billion each year, a figure backed by estimates from revenue authorities and business groups. This includes lost tax revenue, business sales, and economic growth, with counterfeit and smuggled goods flooding markets and undercutting legitimate companies. The problem spans sectors like tobacco, clothing, electronics, and pharmaceuticals, where fake products not only cheat the fiscus but also pose health risks to consumers.
For instance, illicit cigarettes alone cost the country around R30 billion in unpaid excise duties annually, controlling about 75% of the market. This has led to factory closures, like a major tobacco manufacturer’s plant shutting down in 2025, putting 230 jobs at risk. Broader illicit financial flows, estimated at $3.5 billion to $5 billion yearly or more than 1% of GDP, involve money laundering and tax evasion that siphon funds offshore. These figures highlight how organised crime thrives, hollowing out the economy while honest businesses struggle to compete.
Human Cost: How Illicit Trade Affects Everyday Lives
Beyond the numbers, illicit trade hits ordinary people hard. Counterfeit goods, from fake medicines to substandard electronics, endanger health and safety – imagine a family buying cheap pills that do more harm than good. Lost tax revenue means less money for public services: fewer teachers in classrooms, longer waits at clinics, and potholed roads that go unrepaired. In a country where poverty affects millions, this R100 billion shortfall could fund better housing, education, and jobs.
Small businesses suffer too, as cheap smuggled items undercut local producers, leading to closures and unemployment. During the COVID-19 pandemic, illicit trade surged, with criminals exploiting supply chain gaps to flood markets with fakes. This not only stole from the fiscus but also eroded public trust in products, making life tougher for families trying to make ends meet.
Tax Justice SA’s Urgent Call: Prioritise Illicit Trade in Mothibi’s Agenda
Tax Justice SA, a campaign group fighting for fair taxes and against corruption, has urged Mothibi to make illicit trade his top priority. Leader Yusuf Abramjee said, “The illicit trade should be at the top of Mr Mothibi’s in-tray. It is organised, lucrative and corrosive and now poses a direct threat to South Africa’s fiscal stability, economic security and the rule of law. The kingpins behind this national menace thrive because enforcement has failed. Their criminal networks have been allowed to operate openly and at scale, hollowing out state authority.”
Abramjee highlighted failures in past probes, like the 2023 exposure of billions in illicit cigarette profits laundered offshore with bank complicity, yet no arrests followed. He stressed that every year of inaction strengthens crime while weakening the state. With Mothibi’s SIU experience in recovering funds, advocates hope he will ramp up prosecutions, targeting networks that evade taxes and undercut businesses.
Mothibi’s Track Record: From SIU Successes to NDPP Challenges
Before his NDPP role, Mothibi excelled at the SIU, leading investigations into state capture and COVID-19 procurement scandals that recovered over R5 billion in assets. His work exposed graft in health and education sectors, showing his skill in building cases against powerful interests. At 63, with a background as a public prosecutor in Johannesburg, Mothibi brings decades of experience to the NPA, which has faced criticism for slow progress on major cases.
Challenges await, including NPA backlogs and resource shortages. Mothibi was not among initial candidates, with some recommendations turned down, but his appointment signals confidence in his anti-corruption credentials. For citizens, his success could mean faster justice in graft cases, recovering stolen funds to boost public services.
National Implications: Tackling Corruption for a Better South Africa
South Africa’s corruption fight is crucial, with illicit trade as a key battleground. The Organisation for Economic Co-operation and Development estimates R100 billion-plus losses yearly, matching revenue authorities’ figures. Business groups say daily tax losses hit R250 million, fuelling calls for stronger enforcement.
If Mothibi prioritises this, it could dismantle networks, recover billions, and protect jobs. Recent factory closures due to illicit competition show the stakes – legitimate businesses cannot compete with tax-evading fakes. For families, cleaner governance means better schools, healthcare, and safety, turning lost billions into real improvements.
Moving Forward: Hopes for Action and Accountability
As Mothibi settles in, Tax Justice SA and others watch closely, hoping his first moves target illicit trade head-on. “This is now Mr Mothibi’s test,” Abramjee said. “The NPA cannot look away while organised crime strips billions from the fiscus and outcompetes law-abiding businesses.”
With South Africa’s economy strained, tackling this R100 billion hole could fund vital services, easing burdens on ordinary people. Mothibi’s tenure offers a chance for change – decisive prosecutions that weaken crime and strengthen the nation. For all South Africans, the hope is for a fairer system where taxes build futures, not line criminal pockets.
🔴Central News Special Edition | Issue 125: Download the Latest Print and E-Edition | Vanderbijlpark Scholar Transport Tragedy: Death Toll Rises to 14 as Investigations Continue🔴
Download Here:
Direct PDF File Here:
https://centralnews.co.za/wp-content/uploads/2026/01/Central-News-Issue-125.pdf
Read all our publications on magzter:
https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues
Central News also offers Sponsored Editorial Content, Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.
We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.
Advertisement:
To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za
For Business Related:
business@centralnews.co.za
Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za
General Info: info@centralnews.co.za
Office Administrator:
admin@centralnews.co.za
Whatsapp / Call: 081 495 5487
Website: https://www.centralnews.co.za
Social Media Platforms (@centralnewsza) : Linkedin, Facebook, Tiktok, Twitter, Instagram, Youtube