This paper documents the typology, forms, scope, origin, magnitude, drivers, and impact of illicit trade in East Africa, with particular reference to Uganda. This paper shows that intra-regional trade in the 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.

Cross-border trade issues examined:

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 an unprecedented flow of counterfeit trade—suggesting the need for concerted cross-border effort, including greater harmonisation of taxes and border procedures.