The Uganda Alcohol Industry Association (UAIA) has launched a new report aimed at expanding knowledge and understanding of the drivers behind the illicit alcoholic drinks trade, including its structure, scale, and impact on government revenue in Uganda. Euromonitor was commissioned to conduct this independent study to provide unbiased data and insights into the illicit alcohol market. This report builds on the findings of the 2020 study, aiding the government gauge the magnitude of the problem and identify strategies to address it.

Key findings from the report include:

• Illicit alcohol accounts for 67% of Uganda’s total alcohol market volume, a 2% increase from 2020.
• Illicit alcohol consumption has grown by 16% since 2020, while fiscal losses have surged by 80%.
• Affordability remains the primary driver of illicit alcohol consumption.

The study also reveals that while Ugandan consumers are aware of what makes alcohol products illegal, there is still a degree of social acceptability. This is evidenced by high consumption rates despite awareness of the associated health risks.

Speaking at the launch, Emmanuel Njuki, Legal and Corporate Affairs Lead at Nile Breweries Ltd and Vice Chairperson of the UAIA, emphasized the report’s significance:

“Often, when we discuss this issue, some assume we are exaggerating the numbers or the impact. That’s why it’s crucial to have an independent, professional entity, one with global expertise, present these findings on our behalf.”

Njuki urged the government to take action in reducing the illicit alcohol trade and formalising the sector, citing both public health and economic benefits:

“You will see increased investment from existing industry players, ensuring safer, regulated, and tax-compliant alcohol products. Additionally, new legitimate players may enter the market to further strengthen the sector.”