An Analysis of Alcohol and Cigarette Prices in Maseru, Gaborone, and Neighboring South African Towns
: TRADE A GLOBAL REVIEW OF COUNTRY EXPERIENCES BOTSWANA, LESOTHO, AND SOUTH AFRICA: AN ANALYSIS OF ALCOHOL AND CIGARETTE PRICES IN MASERU, GABORONE, AND NEIGHBORING SOUTH AFRICAN TOWNS TECHNICAL REPORT OF THE WORLD BANK GROUP GLOBAL TOBACCO CONTROL PROGRAM. CONFRONTING EDITOR: SHEILA DUTTA ILLICIT TOBACCO BOTSWANA, LESOTHO, AND SOUTH AFRICA 19 BOTSWANA, LESOTHO, AND SOUTH AFRICA An Analysis of Alcohol and Cigarette Prices in Maseru, Gaborone, and Neighboring South African Towns Kirsten van der Zee and Corné van Walbeek1 Chapter Summary The government of Lesotho plans to implement a levy on tobacco and alcohol products. The proposed measure is similar to levies that have been implemented in Botswana in recent years. A concern is the possibility that Lesotho’s new levy may stimulate a significant increase in bootlegging between Lesotho and South Africa. This chapter investigates the presence and possibility of bootlegging between South Africa and Botswana, and South Africa and Lesotho, by describing the differences in cigarette and alcohol prices between Gaborone, Botswana, and the nearby South African towns of Mafikeng and Zeerust, as well as between Maseru, Lesotho, and nearby Ladybrand, South Africa. 1 Economics of Tobacco Control Project, University of Cape Town, South Africa. 551 551 Confronting Illicit Tobacco Trade: A Global Review of Country Experiences An analysis of comparative cigarette price data indicated the following: Gaborone and Mafikeng/Zeerust. Overall, average cigarette prices are significantly higher in Gaborone than in nearby South African towns. The cheapest pack price found in Gaborone was nearly five times the cheapest price identified in South Africa. Maseru and Ladybrand. Cigarette prices differ between Maseru and Ladybrand, but much less than between Gaborone and Mafikeng/Zeerust.
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