Dar es Salaam, February 5, 2026 – Illicit alcohol continues to pose a serious threat to public health, government revenue, and legitimate businesses in Tanzania, according to a newly released study.
The study reveals that approximately 61% of all alcohol consumed in Tanzania is illicit, resulting in an estimated annual revenue loss of TZS 1.026 trillion due to uncollected taxes.
A Regional Challenge
The findings reflect a broader regional trend. Similar studies conducted by Euromonitor International in Kenya and Uganda in 2025 showed that illicit alcohol accounted for 60% and 67% of illicit alcohol consumption, respectively.
Experts say this indicates that illicit alcohol is not only a national issue but a regional challenge that requires coordinated, long-term solutions.
What Constitutes Illicit Alcohol?
According to the study, illicit alcohol refers to beverages that do not fully comply with tax, regulatory, and legal requirements. This includes alcohol that:
- Is not subject to proper excise duty
- Lacks required health and safety approvals
- Violates production standards
- Uses unapproved or unsafe ingredients
Illicit alcohol is also distributed through unlicensed outlets, which play a significant role in alcohol markets across many developing countries.
Traditional Brews Dominate the Illicit Market
The study shows that illicit alcohol spans all categories, including spirits, beer, and wine. However, a significant share comes from illegal traditional or artisanal brews, such as Mbege, Komoni, Wanzuki, Ulanzi, and Dengerua.
While these drinks have cultural significance, their widespread consumption is largely driven by low prices. For example, gongo, which is banned, can be up to 80% cheaper than legally produced spirits. Counterfeit alcohol and smuggled products also remain a major concern, particularly in the spirits and beer segments.
Serious Risks to Public Health
Beyond economic losses, illicit alcohol poses significant health risks. Unsafe production practices and the potential use of hazardous chemicals increase the likelihood of poisoning, long-term illness, and even death.
These risks are growing as the illicit alcohol market continues to expand faster than the legal alcohol sector.
Government Calls for Urgent Action
Speaking at the release of the study, Deputy Minister for Industry and Trade, Hon. Dennis Londo, said the findings highlight an urgent national challenge.
“Losing more than TZS 1 trillion annually to illicit alcohol undermines the government’s ability to fund essential social services and protect public health. This study provides critical evidence to support policy decisions and strengthen collaboration between government and stakeholders,” he said.
Gongo Accounts for the Largest Revenue Loss
The study indicates that illegal traditional spirits, commonly known as gongo, account for the largest share of revenue losses, estimated at TZS 709 billion per year.
Additional losses stem from counterfeit alcohol, smuggled products, and tax evasion, including under-declaration or complete avoidance of excise duties.
Why the Study Was Commissioned
Leodegar Tenga, Chief Executive Officer of the Confederation of Tanzania Industries (CTI), said the lack of reliable data on illicit alcohol had made it difficult to design effective interventions.
“Without credible data, it is challenging to develop targeted and effective solutions. This study was commissioned to close the information gap, quantify the true scale of the problem, and support evidence-based policymaking,” Tenga said.
Research Methodology
Benjamin Rideout, a consultant at Euromonitor International, explained that the study used a mixed-methods approach to capture the realities of a largely informal market.
“Because illicit alcohol operates outside formal systems, we conducted field visits, stakeholder interviews, and consumer surveys to build a comprehensive and comparable picture of the market over time,” he said.
Private Sector Support
From the private sector, Serengeti Breweries Limited (SBL) said its collaboration with CTI reflects a commitment to consumer safety and fair competition.
“Illicit alcohol endangers consumers’ lives, reduces government revenue, and undermines compliant businesses. Our participation in this study is part of a broader effort to support evidence-based dialogue and long-term solutions,” said SBL Managing Director, Obinna Anyalebechi.
Key Recommendations
Despite widespread awareness of health risks, the study notes that low prices, easy availability through informal channels, and social acceptance continue to drive consumption of illicit alcohol.
To address the problem, the study recommends:
- Strengthening ethanol regulation
- Enhancing border and domestic enforcement
- Expanding consumer education and awareness
- Scaling up technology-based solutions, such as excise stamp verification systems
These measures are seen as critical to curbing illicit alcohol trade and safeguarding public health, government revenue, and the integrity of Tanzania’s alcohol market.
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