Illicit trade in East Africa: what do we really know? IPRA Working Paper 20

This paper documents the typology, forms, scope, origin and magnitudes, driver and impact of illicit trade in East Africa, with particular reference to Uganda. This paper shows that intra-regional trade in EAC is substantially lower than what actually takes place in the form of trade between its neighbours. Part of the reason is illicit cross-border trade, estimated to cost about US$140 million annually in losses to revenue in Uganda and Kenya alone. The paper examines a number of cross-border trade issues including dumping and counterfeit practices, smuggling, and key factors that are partly responsible for the apparent increase in cross-border illicit trade. It finds evidence of unprecedented flow of counterfeit trade – suggesting concerted cross-border effort, including greater harmonization taxes and border procedures.