Africa’s growing resolve on global stage reflected in bold stance against Big Tobacco’s illicit trade interference

 

Recognising its G20 Presidency as a historic opportunity to accelerate Africa’s ascendance on the global stage, South Africa is capitalising on its presence at January’s World Economic Forum (WEF) in Davos to showcase its ambitious vision.

As Africa’s first-ever G20 chief, Pretoria is placing the continent’s key challenges of debt relief, climate action and inclusive, sustainable development at the heart of the organisation’s agenda. Ahead of the WEF, South African finance minister Enoch Godongwana notably stressed the importance of public-private sector collaboration to unlock the potential of a united continent.

With President Cyril Ramaphosa citing “unsustainable levels of debt” as a major hindrance for emerging economies, African governments must adopt strong fiscal measures to fund development programmes – an undertaking which requires thwarting undue external influence. In this space, tackling the illicit tobacco trade long fueled by multinational tobacco companies offers a vital opportunity for Africa to progress its economic sovereignty.

Encouragingly, Madagascar, Uganda and Côte d’Ivoire are among a growing coalition of African countries taking a bold stance against Big Tobacco’s interference, mobilising a robust, independent crackdown on the illicit trade to bolster public coffers and lay the foundation for sustainable growth.

Big Tobacco’s illicit trade complicity in Africa

Facing a rising tide of illicit tobacco which currently accounts for an estimated 70% of its domestic market and deprives the government of R24 billion ($1.32 billion) in annual tax revenue, South Africa is well-placed to convene a strong, coordinated response. Amid this surge in illegal cigarettes, British American Tobacco (BAT) notably announced its intention to scale back deliveries to South Africa last year – a highly ironic and hypocritical declaration given the company’s long history of complicity in the continent’s illicit trade.

Published in 2021, joint investigations conducted by the OCCRP and the University of Bath’s TCRG revealed BAT’s cynical practice of flooding Mali with legally-labelled cigarettes just as the country’s north fell to militants, fully aware that its products would fuel trafficking networks. Facilitated by Imperial Brands’ distribution via a state-affiliated firm, this BAT-enabled smuggling operation financed jihadist groups and militias in a region spiraling into chaos.

In Burkina Faso, investigations found that Philip Morris International (PMI) followed a similar playbook, with politically-connected company representative Apollinaire Compaoré playing a central role in smuggling billions of illicit Marlboros into Libya, Algeria, Mali and Nigeria. Alongside this smuggling empire came corrosive governance influence – take Kenya, where researchers have accused BAT of exercising undue influence over the government’s tobacco control legislation in violation of the World Health Organization’s Framework Convention on Tobacco Control (WHO FCTC).

As Campaign for Tobacco-Free Kids President Matthew L. Myers has aptly summarised, industry giants like BAT and PMI “see fragile states as one of the few remaining growth markets” that they can “exploit…in order to make money – no matter the consequences.”

Madagascar joining a united front

More recently, PMI’s and BAT’s neo-colonialist treatment of African countries “as markets to be exploited rather than independent sovereign states,” in the words of TCRG researcher Phil Chamberlain, has taken a different form.

As demonstrated by the EU's widely-criticised and ineffective track and trace system, Swiss companies Dentsu Tracking and Inexto are among the main private firms the tobacco industry has mobilised to facilitate governments’ adoption – and mask the origins – of the Philip Morris International (PMI)-developed track and trace technology, Codentify, a system which blatantly violates WHO’s industry-independence provisions. Both Dentsu and Inexto are closely linked to Codentify's development, with the latter's excessive financial ties to the tobacco industry openly admitted.

Yet, Africa is mounting an increasingly-strong defence against Big Tobacco’s manipulation. In the 2023 Africa Tobacco Industry Interference Index – produced by the Africa Tobacco Control Alliance (ACTA) – Uganda, Ethiopia and Botswana were deemed the most-resistant to the tobacco industry’s undue influence. This recognition reflects a firm commitment to the WHO FCTC’s industry-independence requirements, with Uganda’s leadership complemented by the long-running success of fellow East African Community (EAC) member-states Tanzania and Kenya in tackling illicit tobacco and consistently increasing annual tax collection through the implementation of “model” track and trace systems compliant with the FCTC’s Illicit Trade Protocol.

Madagascar, one of 18 African countries surveyed in the Index, has recently followed in the footsteps of its regional neighbours, with its government taking the bold measure to cancel a track and trace tender after Dentsu won the contract under suspicious circumstances. Misleadingly promoted as a cost-effective and efficient solution, the victory of Dentsu’s digital-only solution raised eyebrows due to its significantly higher cost compared to the competing bid combining physical and digital security features. Madagascar’s decision notably follows the approval of a $67 million African Development Bank Group grant that will help overhaul its tax system, from modernising revenue collection to tackling tax fraud. Clearly on the right path, Madagascar’s ongoing commitment to the WHO Protocol and strong fiscal governance will be crucial in financing its sustainable development ambitions.

Adding to its declining fortunes in Africa, Dentsu’s expansion attempts in Côte d’Ivoire have equally been thwarted after years of incessant lobbying, with the government’s implementation of a WHO-compliant track and trace system using both physical and digital technologies forcing the company to withdraw its bid.

Africa’s ongoing Dentsu-Inexto threat

Across Africa, the Republic of Congo appears to be the only remaining country using Inexto’s and Dentsu’s technology—an untenable situation from both a fiscal and public health standpoint. As tax revenues become ever more critical for development and the safeguarding of national sovereignty, Brazzaville’s continued alignment with foreign corporate interests stands in stark contrast to a continent increasingly asserting its independence.

Moving forward, Africa must deny Big Tobacco-linked firms a backdoor entry – the continent’s response to this cross-border menace is only as strong as its weakest link. As of May 2023, only 22 nations in the WHO African Region had ratified the Protocol, leaving significant gaps for industry interference and making universal ratification a top priority in curbing tobacco industry efforts to infiltrate life-saving public health policies.

This agenda is particularly pressing as Dentsu and Inexto continue their push to expand in Africa, despite repeated warnings from tobacco control NGOs like the Global Alliance for Tobacco Control about their deep industry ties and technological inadequacies. To effectively combat illicit trade, African nations must build strong partnerships with independent private sector actors that comply with the Protocol. Only by doing so can they dismantle the industry’s grip, recover lost tax revenues and reinvest in locally-driven development.

South Africa’s G20 presidency marks a defining moment in Africa’s growing influence, reinforcing the continent’s determination to shape global policies on its own terms – a confidence equally evident in African nations’ fight against Big Tobacco interference from which Pretoria can now draw inspiration. From strengthening public services and reining in debt to deploying an ambitious green transition, the continent should continue positioning itself for collaboration with private companies and multilateral institutions aligned with Africa’s ambitions. 

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