(Alliance News) - British American Tobacco PLC's South African unit on Friday said it will relaunch an urgent legal action to challenge the country's ban on cigarette sales, despite lockdown measures easing from next week.
British American Tobacco South Africa warned that the ban threatens the survival of the local tobacco industry.
Earlier this month, BATSA, which accounts for a 78% share in the South African cigarette market, pulled out of a legal battle the tobacco industry was waging to challenge the government's ban on cigarette sales.
From Monday, South Africa, which has a five-step Covid-19 alert system, will move to level three, from the more stringent level four. Although curbs on alcohol sales will be relaxed, the ban of cigarette sales will remain.
In a statement on Friday, BATSA is supported in the latest legal challenge by Japan Tobacco International, as well as groups and organisations representing the tobacco value chain across the country, including consumers, tobacco farmers and retailers.
"Government has ... decided to maintain the ban on tobacco products under the guise of limiting the spread of Covid-19 while allowing all other previously banned consumer products to go back on sale," said Johnny Moloto, BATSA's head of external affairs.
"Given the situation, and the lack of any response from the government despite our ongoing efforts to engage with them, we are now commencing urgent legal proceedings," Moloto said, adding that the ban on tobacco sales is threatening the survival of the tobacco industry.
BATSA, he said, has made every effort to constructively engage with the government since the ban came into force.
"To date, no formal response has been received from the government, and BATSA has also not been included in any of the government's consultation processes so far," Moloto said.
BAT shares were 0.4% lower at ZAR700.25 each in Johannesburg on Friday, shortly before midday. On Friday morning in London, BAT's stock was trading 0.5% lower at 3,257.00 pence.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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British American Tobacco (BATS)