Finance · South Africa
BAT Factory Closure Threatens South African Tobacco Farmers
Moneyweb · 2026/02/03
Summary
British American Tobacco (BAT) is closing one of its factories in South Africa, and this move is causing concern among local tobacco farmers. Francois van der Merwe, spokesperson for the South African Tobacco Transformation Alliance (SATTA), explains that the factory closure could hurt tobacco farmers by reducing the demand for their crops. This is especially worrying because many farmers depend on tobacco as their main source of income. The closure may also impact jobs and the wider economy in farming communities. At the same time, the tobacco industry in South Africa is facing challenges, including changing consumer habits and stricter regulations, which have made it harder for companies like BAT to operate profitably. Farmers and other stakeholders are calling for support and solutions to protect their livelihoods during this difficult time.
OnABudget takeaway: For small tobacco farmers, BAT’s factory closure may mean less income and fewer job opportunities. It’s important for farmers and workers to look for ways to diversify their income and find new markets to stay financially stable.