East Africa: CBC-EA Business Forum Calls for Measures to Curb Illicit Trade

Source from:  East African Business Week (Kampala) 2 November 2008 11/04/2008

The Commonwealth Business Council (CBC) East Africa International Business Forum has called for measures to curb illicit trade which is undermining establishment of a single East Africa market. "Illicit trade is a growing menace within East Africa's consumer goods market, and included products which are smuggled, counterfeited or undeclared local production," CBC director general, Mr. Mohan Kaul said. "It undermines the investment needed to improve competitiveness and producing the jobs and income needed to support families and public services." Kaul was speaking during the CBC East Africa International Business Forum, which concluded in Kigali at the end of last week. The two-day meeting, which was presided over by President Paul Kagame, the chairman of the East African Community (EAC) attracted over 500 distinguished government and business leaders from 28 countries. Tobacco Company British American Tobacco (BAT) said the region could be losing around US$61million in tax revenues annually because of illicit trade. This statistic is also contained in a report whose contents were shared during the meeting. "The profile and awareness of the issues around illicit trade are not growing in the EAC as rapidly as they should be. Regardless of the product category, illicit trade can no longer be viewed as a victimless crime," BAT's area director for Sub-Saharan Africa region, Mr. Jeremy Pike said. "We believe that globally illicit trade in tobacco products is around 6.4% of total consumption, whereas in East Africa, the figure is nearer to 14% of the total market consumption - more than double the estimated global average," he added. The report highlights the major causes and urges the governments to work with the private sector to address the issue. The meeting called for faster harmonization of the tax levels, better enforcement and tougher penalties, and public education to eradicate illicit trade. Enditem