Counterfeit pharmaceutical product sales from online platforms and vendors are skyrocketing in South Africa, according to a newly-released independent report, which has called for tighter security measures, more accountability, and the establishment of a national pharma crime team.
As consumers step up efforts to try to source cheaper versions of scheduled medications, the concerned stakeholders say regulatory gaps make it difficult for law enforcement to stop these illegal sales.
The report from the Transnational Alliance to Combat Illicit Trade (Tracit) was released last week with Business Unity South Africa (Busa).
Tracit is an independent NPO that aims to combat illicit trade globally, reports News24.
Titled SA’s fight against illicit trade: A strategic view, the document reports that current regulations are not equipped to hold third-party platforms accountable, and that illicit sales also risked consumers’ health and safety.
It said the increased sales of counterfeit medication and pharmaceutical products, both online and in the informal economy, were driven by factors including weak trade enforcement at borders, more consumers seeking cheaper alternatives, a lack of public awareness around counterfeit goods, and a lack of capacity for the courts and law enforcement to hold guilty parties and companies accountable.
Although South Africa’s pharmaceutical regulatory framework meets international standards, a lack of a strategic framework and clear enforcement responsibilities leaves the system vulnerable to counterfeit infiltration.
Efforts to mitigate these risks must focus on strengthening enforcement mechanisms, modernising regulations, and closing gaps in the pharmaceutical value chain to protect public health and safety.
The South African Health Products Regulatory Authority (SAHPRA) had already raised the alarm over counterfeit Ozempic-like medication or Glucagon-like Peptide-1 (GLP-1) products last year, the report said, but added that the growth in online platforms had led to more hotspots for the illicit trade of products like vapes and cigarettes.
“Key deficiencies (relating to online platforms in SA) include inadequate regulations establishing platform liability for third-party illicit sales, insufficient transparency measures such as seller verification, limited proactive risk management by online marketplaces, and weak consumer recourse mechanisms (…)
“Existing frameworks, including the Medicines and Related Substances Act, have not sufficiently evolved to address digital commerce, resulting in critical vulnerabilities.”
Tracit found that SA had been particularly vulnerable to illicit trade, ranking 60th out of 158 countries on its 2025 Illicit Trade Index. Among the top performers on the index, which indicates how capable countries are able to fight illicit trade, are Denmark, followed by the US, Finland and Germany.
While SA scored above the global average and landed at 52.4 out of 100 in Africa, the index found that supply chain weaknesses, corruption, and the prevalence of illicit trade in cigarettes, alcohol and pharmaceutical products had hampered its ability to achieve a higher score.
The report also found deficiencies in SA’s postal and parcel delivery service systems, saying that better regulations were needed to combat smuggling through international and domestic mailing systems.
At the report’s launch, Tracit director Esteban Guidici said that modern illicit trade was often facilitated through small parcels. The Consumer Goods Council had found that SA lost 10% of its GDP annually due to counterfeit goods and illicit trade.
“Like all countries, South Africa is grappling with national post offices and private couriers. It is flooded with them, and …the illicit goods …because of a lack of controls. When it comes to pharmaceutical products, these are often sent through small parcels to avoid detection.”
Recommendations from Tracit include establishing a public-private Interagency Anti-Illicit Trade Co-ordinator with Busa and BLSA, to combat illicit trade locally, including a Pharma Crime team.
The co-ordinator, which will form part of the national government, would aim to raise awareness of illicit trade, provide financial resources to law enforcement, and enforce more aggressive anti-illicit trade regulations.
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