SupplyChain Magazine December 2016 | Page 89

AFRICA of the company ’ s entire production is for domestic consumption with the remaining third used for exports . When it comes to manufacturing , BAT sources most of its technical requirements from international suppliers across Japan , Europe and the Americas .
“ All our equipment is imported , with the manufacturing equipment supplied from Italy and Germany in which we purchase spare parts ,” says Kyalo . “ Some specialised materials such as cigarette paper and materials , we still have to import from Japan , Europe or Americas .”
Segun Abati Procurement Business Manager - Operations
Legitimacy over illicit forces Tobacco as an industry is a considerably controversial market with close to 600 billion cigarettes traded illicitly in the global market . This has a significant impact on governments as it is they who are left to foot the bill in taxes , something close to upwards of £ 30 billion annually . It presents a further problem as it is believed that profit gained through illicit trade is used to fuel terrorism and organised crime . This is a pressing issue that BAT and the Nigerian government are all too aware of .
“ At one point in the last decade , 80 percent of trade across Nigeria was illicit ,” says Kyalo . “ BAT has worked closely with the government to put measures and controls in www . bat . com 89