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.