Overview
- British American Tobacco South Africa confirmed it will shut its Heidelberg, Gauteng factory by the end of 2026, ending more than five decades of local cigarette manufacturing.
- The company will remain in the country and transition to an import-based supply chain to serve adult consumers.
- About 230 jobs are at risk, with consultations under Section 189A underway with employees and unions and targeted to conclude by the end of March 2026.
- BAT cites an estimated 75% illicit market share, a post‑2020 volume decline, and plant utilization at roughly 35% as key factors behind the decision.
- Citing recent research, BAT points to a Tracit estimate of R30 billion in annual revenue losses from illicit trade and a BAT‑commissioned Ipsos finding that nearly 80% of retailers sell illicit cigarettes, while also blaming the 2020 sales ban, excise hikes, and proposed new legislation.