Uganda government deploys new technology to combat illicit trade

KAMPALA, Uganda — The Uganda Revenue Authority (URA) and the Uganda National Bureau of Standards (UNBS) have unveiled new technological solutions in a concerted effort to combat illicit trade, a challenge they both recognize as a national concern.

 The agencies are deploying digital tools to improve product traceability and protect consumers from substandard goods.

According to URA’s tax enforcement manager, Moses Kyomuhendo, the tax body is using digital tax stamps to increase oversight, particularly on excisable goods like soft drinks, alcohol and tobacco. These stamps, embedded with unique security features, allow the URA to track products that previously went unmonitored.

Kyomuhendo emphasized that the technology is critical for formalizing small-scale manufacturers and ensuring a fair economic landscape. “The goal is clear: to ensure every player in the manufacturing sector is aligned and contributing to a fair, safe and competitive economy,” he said.

The UNBS has launched the Digital Conformity Marking (DCM) program. This system provides a track-and-trace mechanism that helps consumers, retailers and authorities distinguish between certified and substandard products.

Sylvia Kirabo, the head of public relations for UNBS, explained that the digital marks contain information such as product details, certification date, and manufacturer’s name. Supermarket owners and consumers can use the “Kakasa” mobile app to scan the marks to verify a product’s safety. UNBS Executive Director Eng. James Kasigwa stressed that this technology is a vital part of building a “national quality culture.”

The push for technological solutions comes as the country continues to lose significant revenue to illegal trade, with URA reporting a loss of more than 91 billion Ugandan shillings (Shs.) in 2022. Recent reports also show that illicit alcohol accounts for a staggering 67% of the market.