A recent report by Euromonitor International and the Uganda Alcohol Industry Association (UAIA) has highlighted the alarming issue of illicit alcohol in Uganda, which now accounts for 67% of the country’s total alcohol consumption.
This was revealed during the launch of the report titled “Understanding the Illicit Alcohol Market in Uganda”, at a function that was attended by industry players, regulators and other key stakeholders.
This development has significant economic and public health implications, with the government losing over Shs3 trillion in taxes in 2024 alone.
According to Euromonitor Consultant Benjamin Rideout, the illicit alcohol market grew by 157,453 hectolitres over the last four years, largely driven by affordability, accessibility, and low enforcement levels.
“With more than 20% of Uganda’s population living below the national poverty line, price continues to be a key factor influencing consumer choices, even at the expense of safety,” Rideout said.
Industry Response
As a key player in the industry, Uganda Breweries Limited (UBL) expressed concern about the issue and reiterated its commitment to working with the government and industry peers to tackle the root causes of illicit trade.
“This is not just a tax issue, it’s a matter of health, safety, and fair industry practice,” Sheila Sabune, Corporate Relations Director, said.
“As champions of responsible drinking and sustainable business, Uganda Breweries remains committed to working with government and industry peers to tackle the root causes of illicit trade and create a future where alcohol is safe, regulated, and contributes meaningfully to national development,” she added.
Impact on Government Revenue
The Euromonitor report indicates that a loss of Shs3 trillion in taxes in 2024 alone is a significant blow to the government’s revenue. This revenue, the report notes, could have been used to fund essential public services, such as healthcare and education.
Health and Safety Concerns
The report also pointed out that the consumption of illicit alcohol poses significant health risks, including the potential for poisoning and other adverse health effects.
With more than 20% of Uganda’s population living below the national poverty line, price continues to be a key factor influencing consumer choices, even at the expense of safety.
The issue of illicit alcohol is thus a complex one that requires a multi-faceted approach.
The government, legitimate alcohol producers, and consumers must work together to address the root causes of illicit trade and create a future where alcohol is safe, regulated, and contributes meaningfully to national development.