Illicit alcohol threatens local industries, say stakeholders

DAR ES SALAAM: ILLICIT alcohol constitutes an estimated 55 per cent of total alcohol production, distribution and consumption in Tanzania, marking one of the highest proportions in Africa.

This was revealed yesterday at a roundtable meeting of government and private sector stakeholders, held to discuss strategies to curb the problem, which threatens livelihoods and undermines revenue generation from the alcohol industry.

Chairman of the Confederation of Tanzania Industries (CTI), Mr Sufian Hussein illicit alcohol remains a pressing issue in the country.

“The illegal alcohol poses serious public health risks due to its unregulated production and toxic contents. It also undermines legitimate businesses, reduces government tax revenue, and drives the growth of an unregulated informal economy,” he said.

Often produced without regulation or quality control, illicit alcohol can contain toxic substances such as methanol, which can lead to severe health consequences including blindness, organ failure and even death.

Under the theme ‘Joining Hands in Fighting Illicit Alcohol in Tanzania,’ the meeting called for coordinated action by regulators, manufacturers, and law enforcement to tackle the issue.

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With an estimated 55 per cent of the alcohol market operating outside formal channels, the government loses significant tax revenue that could otherwise support public services and development programmes.

Legitimate alcohol producers also face unfair competition, which discourages investment and stifles growth in the formal sector.

Additionally, the burden of treating alcohol related illnesses caused by unsafe brews places further strain on public healthcare resources, diverting funds from other critical needs.

The informal nature of this trade also means a lack of job security and poor working conditions for those involved in production and distribution.

The forum officially launched a national study to determine the true scale and drivers of illicit alcohol in Tanzania. Forms of illicit alcohol include counterfeits, artisanal homebrews, smuggled products, and untaxed alcohol.

The joint governmentprivate sector study follows previous discussions recognising the need for datadriven evidence to inform policies, regulations, and legislation to combat illicit alcohol in the country.

Speaking on behalf of other alcohol manufacturers, Serengeti Breweries Managing Director, Obinna Anyalebechi said the industry is eager to use the research insights to develop niche products that attract consumers away from illicit alcohol.

Regional Commissioner for Dar es Salaam, Mr Albert Chalamila, stated that the joint effort aims to ensure future policies and regulations are based on credible data and promote sustainable solutions for Tanzanians and the formal industry.

“This meeting is a key step in coordinating efforts to combat illicit alcohol, which threatens public health, undermines legitimate businesses, and reduces government revenue,” Chalamila said.