Illicit alcohol is one of Tanzania’s most pressing public health and economic challenges. Beyond the tragic loss of lives caused by toxic brews, the shadow market drains government revenues, undermines legitimate businesses, and fuels unsafe consumption. This is not only a tax issue—it is a national concern that demands collective action from government, industry, civil society, and consumers alike.
The Scale of the Problem
Research shows that up to 86% of all alcohol consumed in Tanzania comes from informal, largely unregulated sources. This highlights the vast volume of untaxed supply flowing outside regulatory oversight.
The fiscal cost is equally severe: government officials estimate that more than TZS 1.7 trillion is lost every year in uncollected excise revenues from sectors such as alcohol and cigarettes—funds that could support health, education, and enforcement. The human cost is no less alarming, with regulators repeatedly warning about “high-risk” alcohol circulating on the market, often linked to methanol poisoning that can cause blindness or even death.
From Policy to Practice: Technology as a Game-Changer
Tanzania Revenue Authority (TRA) has responded with modern enforcement systems anchored in Electronic Tax Stamps (ETS) and product authentication tools.
These deliver:
- End-to-end traceability from production to point-of-sale
- Instant consumer verification through the Hakiki Stempu mobile app
- Real-time data for enforcement teams to identify non-compliance and illicit hotspots
Recent field activations, including consumer education during Sabasaba Trade Fair, have helped increase public use of Hakiki, strengthening market surveillance. TRA is also piloting data-driven approaches to detect suspicious trading patterns faster and to enable smarter, risk-based inspections.
Partnerships Driving Real Impact
Illicit trade cannot be tackled by one institution alone. TRA works closely with other agencies, including:
- TBS (Tanzania Bureau of Standards) to monitor quality and remove unsafe beverages
- FCC (Fair Competition Commission) to fight counterfeits and block cross-border flows
- Law enforcement units to conduct joint raids and prosecutions
Since ETS was introduced in 2019, these collaborations have enabled faster removal of illicit products from retail shelves, expanded awareness campaigns (such as the Ndondo Cup and Sabasaba activations), and trained officers to spot non-compliant products.
Media reports following TRA’s Editors’ Forum in June 2025 also highlighted how “digital market intelligence” has helped uncover ghost receipts and counterfeit stamps, leading to successful crackdowns. Importantly, leading manufacturers are dedicating resources to compliance, reinforcing that the fight against illicit alcohol is a shared responsibility.
Protecting Health, Boosting Revenue
The benefits of this approach are clear:
- Consumers are protected from unsafe products
- Legitimate manufacturers compete on a level playing field
- Government secures excise revenues to fund essential services
These efforts have gained recognition both locally and regionally, underscoring Tanzania’s progress in confronting illicit trade with modern solutions.
Looking Ahead
TRA’s vision is to deepen the integration of traceability, consumer verification, and risk-based enforcement powered by analytics. Working hand-in-hand with manufacturers, distributors, enforcement bodies, and the public, the Authority is committed to scaling what works, refining what needs improvement, and ensuring every stakeholder plays their role in building a safer, fairer alcohol market.
Illicit alcohol may be pervasive, but with technology, collaboration, and community engagement, Tanzania is charting a clear path towards protecting health and securing much-needed revenue for national development.
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