Health effects, revenues: CTI’s concerns over illicit alcohol

By Guardian Reporter , The Guardian
Published at 10:39 AM Feb 18 2025
Paul Makanza, former CTI chairman and key resource fellow
Photo: Courtesy of TanzaniaInvest
Paul Makanza, former CTI chairman and key resource fellow

THE Confederation of Tanzania Industries (CTI) has called for urgent action to enforce laws to address escalating problems of consuming illicit and harmful alcohol.

Paul Makanza, former CTI chairman and key resource fellow, issued this appeal at a high-level workshop hosted by CTI, bringing together key industry stakeholders, policymakers and regulatory authorities to address the matter.

Officials from ministries like Health and Home Affairs, the Fair Competition Commission (FCC), the Tanzania Bureau of Standards (TBS) and leading figures in the alcohol industry were present, officials noted.

Stressing the significant public health risks associated with unregulated alcohol, he pointed at high toxicity leading to long-term health complications such as liver disease and blindness, or even fatalities.

Illicit alcohol also fuels social problems like crime, domestic violence and decreased workplace productivity, further straining healthcare and social welfare systems, he declared.

"The fight against illicit alcohol is paramount," he asserted, underlining that it is about protecting Tanzanian lives, securing government revenues and ensuring a fair business environment.

Illicit alcohol jeopardises public health, fuels social problems, and undermines the formal industry which supports thousands of jobs and drives economic growth, he elaborated, pointing at the need to intensify enforcement and strengthen policies to raise awareness on the crisis.

This will help to ensure a responsible and sustainable alcohol industry that positively contributes to the country’s development, the industry leader noted.

Obinna Anyalebechi, the Serengeti Breweries Ltd (SBL) managing director, echoed the sentiments, stating that alcohol manufacturers need to be committed to this mission. “True success in our industry is not solely measured by financial gain but by our ability to contribute to the sustainable development of society,” he told the audience.

Airing the view that alcohol misuse harms everyone - industry, public health and society, he was affirmative that tackling the challenge requires collaboration rather than confrontation.

Illustrating the economic impact of illicit alcohol, he pointed at a 2018 study by Ernst & Young, an audit firm, which estimated that the government loses upwards of 1.2trn/- annually from trade in illicit alcohol.

These unregulated sales not only undermine legitimate businesses but also lead to significant tax revenue losses, limiting the government's ability to fund vital services like healthcare and education, the study had indicated.

Moreover, the formal alcohol industry as a significant employer, faces unfair competition from unlicensed operators who evade safety regulations and quality standards, the director noted.

The meeting was of the view that to protect public health and economic stability, the government and stakeholders need to more strict enforcement of regulations by strengthening existing laws and regulations in the alcohol sub-sector.

CTI officials also called for enhanced measures, vigilance and effective enforcement which are crucial in combating the illicit alcohol trade, demanding public education campaigns to inform the public about the dangers of illicit alcohol and promote responsible consumption.

Emphasizing the urgent need for collaboration between industry leaders, regulatory bodies and law enforcement, they appealed for the setting up of a safe and responsible alcohol industry that contributes to the country’s socio-economic progress.