South Africa’s new Tobacco Bill could devastate nearly 2 million informal traders by banning single cigarette sales and tightening restrictions on tobacco advertising, display, and e-commerce.
A storm is brewing in South Africa’s informal trading economy as the Tobacco Products and Electronic Delivery Systems Control Bill proposes a ban on the sale of loose cigarettes, sparking widespread fears of financial collapse among small traders.
The Bill, currently under parliamentary review, introduces sweeping reforms aimed at curbing tobacco use. But critics argue that these changes come at a devastating cost to nearly 2 million informal traders, hawkers, spaza shops, and home-based retailers who rely on single cigarette sales for survival.
Crippling Clause: No More Single Cigarettes
At the heart of the controversy lies a clause that explicitly bans the sale of single cigarettes. Offenders could face fines or imprisonment, creating a legal minefield for informal traders.
According to Mampapatla Madikoto, General Secretary of the Limpopo Small, Medium Enterprises and Hawkers Association, “This clause will cripple our operations. Most customers buy loose cigarettes along with other small items. If we lose that foot traffic, we lose everything.”
Madikoto also explained that many customers prefer singles because a full pack is too expensive or they’re trying to cut back on smoking. The ban, therefore, may not even serve its intended public health purpose.
Display Ban and Outdoor Smoking Crackdown
In addition to outlawing single cigarette sales, the Bill introduces a display ban, prohibiting tobacco products from being visible on countertops or tables at points of sale.
Traders have called this provision impractical, especially in small stall setups where hidden storage is not feasible.
The Bill also seeks to hold traders accountable if customers are found smoking near their stalls in designated nonsmoking outdoor public areas, adding another layer of legal risk.
Impact on E-commerce: A Blow to Online Retailers
The legislation doesn’t stop at physical sales. It proposes a complete ban on online tobacco sales—a decision that could crush digital entrepreneurs like Madoda Khuzwayo, CEO of online retailer SIP, who also sells alcohol and tobacco products.
“This clause is discriminatory,” Khuzwayo said. “Large physical stores can still sell tobacco, but online platforms—many of which are run by small businesses—will be cut off completely.”
Khuzwayo added that age verification technology on delivery can effectively prevent underage sales, and urged the government to reconsider the e-commerce clause.
Public Health vs. Economic Livelihood
Supporters of the Bill argue that stricter laws are essential to curb smoking, especially among the youth. However, informal business advocates insist the legislation disproportionately targets township economies and deepens inequality by stifling small players in favour of large corporations.
“Without amendments, the Bill entrenches inequality,” Khuzwayo warned, “and undermines emerging businesses.”
What’s Next?
The Portfolio Committee on Health has concluded public hearings in all provinces and is now reviewing oral submissions in Parliament. Final amendments and adoption of the Bill remain pending.
For now, informal traders, small business owners, and e-commerce entrepreneurs wait anxiously, hoping for a more balanced approach that considers both public health and economic realities.
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