Sustainability

Eradicating Illicit Trade

Ministry of Trade, URA, UNBS and stakeholders commit to eradicating illicit trade at PSFU Dialogue.

Stakeholders in Uganda’s manufacturing industry have this morning committed to eradicating illicit trade and setting the sector and the country’s economy on course for the benefits that the vice has derived from them over the years.

At a dialogue organized by the Private Sector Foundation Uganda (PSFU), several stakeholders; notably the State Minister of Trade, Industry and Cooperatives Hon. David Bahati, the Commissioner General of URA John Musinguzi Rujoki, Ministry of Finance, the Executive Director of the Uganda National Bureau of Standards (UNBS) Dr David Livingstone Ebiru, our MD Andrew Itambo Kilonzo and other corporates affected by illicit trade, vowed to start immediate action to rid the country of illicit trade and set us on course for development.

Reports indicate that illicit trade is mainly common in alcohol, water, cigarettes, steel products, detergent products, ballpoint pens, electrical appliances, cosmetics, pharmaceuticals, agrochemicals, and computer software and hardware spare parts. Uganda Revenue Authority (URA) reported a loss of over UGX 91 billion in 2022 and according to the latest industry surveys, illicit trade constitutes 29.4% of the tobacco market and 64.7% of the alcohol market resulting in a loss of over UGX 30 billion and UGX 1.6 trillion respectively in tax revenue annually from tax evaded products.

There was also a panel discussion on illicit trade where our Corporate Relations Director Juliana Kagwa was a panellist and reiterated our position on illicit alcohol and its dangers to the health of our people and the economy. The panel was moderated by Jackie Tahakanizibwa, our Corporate Relations Manager.

All stakeholders recognized the need to go away from deliberations on the matter and massaging the vice and set out to curb it. They signed a commitment to ensure that they make meaningful steps to eradicate illicit trade and set timelines to weigh their performance.