British American Tobacco South Africa (BATSA) has announced it will shut down its only local cigarette manufacturing plant, citing the severe impact of illicit trade on the industry.
The Heidelberg facility in Gauteng is set to close by the end of 2026. The company says the decision was driven by the rapid growth of the illegal cigarette market, which it estimates now accounts for around 75 percent of total sales, making local manufacturing economically unviable.
According to BATSA, the factory is currently operating at just 35 percent capacity, placing approximately 230 jobs at risk.
The company has stressed that it is not exiting South Africa and will transition to an import-based supply model to continue supplying the local market.
However, BATSA has warned that the plant’s closure serves as a stark indication of how the proliferation of illicit trade is undermining legitimate industries, threatening jobs, and harming communities across the country.