Tobacco Value Chain

The tobacco industry is a vital contributor to the economy.   It not only creates and sustains a large number of jobs throughout the value chain, but also supports the inclusive growth and development of emerging farmers throughout the region. 

SOUTH AFRICAN TOBACCO INDUSTRY

PRIMARY INDUSTRY SUPPORTS (Figures from 2018/2019 season):

  • 181 commercial tobacco farmers
  • 137 small-scale tobacco farmers
  • 8 000 – 10 000 farm workers
  • > 30 000 dependants making a living in deep rural areas
  • 5 200 hectares cultivated
  • Total annual SA tobacco crop: +15 million kilograms
  • > 90% of tobacco used in SA for manufacturing high-quality tobacco products

SA CIGARETTE INDUSTRY

Key statistics (Figures from 2018/19 tax year):

  • Total Cigarette Market: Estimated between 29 and 30 billion sticks
  • Illicit cigarette market: Estimated at 33% of total market
  • Excise and VAT on Excise: > R16 billion paid to Government