By Robyn Joubert
National public hearings have closed on the proposed Tobacco Products and Electronic Delivery Systems Control Bill, with the final hearing held in George on 2 February. If passed, the bill will have a far-reaching impact on South Africa’s tobacco value chain, including small scale and emerging farmers.
After hosting 27 public hearings in nine provinces, the Portfolio Committee on Health will now schedule oral hearings in Cape Town for those who previously indicated their desire to make presentations before the committee.
The current bill places severe restrictions on the advertising, promotion, display and use of tobacco, with measures to protect people from second-hand smoke. While some support the bill for taking steps against the harmful consequences of consuming tobacco products, it has also been met with strong opposition.
Rosheda Muller, president of the National Informal Traders Alliance of South Africa (NITASA), said the restrictions would devastate informal traders, including hawkers, spaza shop owners and home-based traders, by stripping them of a crucial income stream.
“At a time when unemployment in South Africa is at record highs, the government should be supporting informal traders, not imposing regulations and red tape that puts them out of business. The ban on displaying tobacco products and selling single cigarettes will not reduce smoking rates. It will merely push sales underground, benefiting illicit cigarette traders,” Rosheda said.
Illegal tobacco sales make up an estimated 70% of the market, causing demand for locally grown tobacco leaf to decline and jeopardising the sustainability of the South African tobacco industry.
Tobacco is an attractive crop for emerging farmers as it is relatively easy to farm and provides a reliable income stream.
In its submission to the committee on 3 August 2024, the Agricultural Business Chamber (Agbiz) said the Bill was likely to have a “substantial impact on the tobacco industry, the agricultural value chain, and the retail industry”.
“There are various services associated with the global and local tobacco value chain, including seed provision, the supply of fertilisers, herbicides and pesticides, financing and banking services, research and development, farm equipment and infrastructure maintenance and insurance, transport and warehousing. All of these service providers have an interest in the sustainability of the tobacco industry,” Agbiz said.
