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Cigarette Smuggling and War Economies in Central and Eastern Africa Kristof Titeca,1 Luk Joossens,2 Martin Raw3

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Cigarette Smuggling and War Economies in Central and Eastern Africa Kristof Titeca,1 Luk Joossens,2 Martin Raw3 Research paper Tob Control: first published as 10.1136/tc.2010.041574 on 3 February 2011. Downloaded from Blood cigarettes: cigarette smuggling and war economies in central and eastern Africa Kristof Titeca,1 Luk Joossens,2 Martin Raw3 1Research Foundation-Flanders, ABSTRACT Further, cigarette smuggling is detrimental to Institute of Development Policy Objective To analyse cigarette smuggling practices in health policy5 6 and the WHO Framework and Management, University of central and eastern Africa. Convention on Tobacco Control (FCTC) empha- Antwerp, Antwerp, Belgium 2International Expert on Illicit Methods Primary data were gathered during long-term sises the importance for tobacco control of 7 Trade in Tobacco, Framework qualitative field research in which about 400 interviews combating illicit trade. Smuggling undermines tax Convention Alliance, Brussels, were conducted. Analysis of secondary sources included revenue and promotes corruption8; by lowering Belgium academic literature and reports from non-government price, consumption is increased9; and smuggling 3UK Centre for Tobacco Control organisations, multilateral organisations and the press. promotes the development of new markets and Studies, Division of 10 Epidemiology and Public Health, Results Our research suggests that the following factors better exploitation of old ones. For example, University of Nottingham, play an important role in cigarette smuggling in eastern smuggling may lower the price of Western tobacco Nottingham, UK and central Africa: (1) government officials encounter brands, making them affordable to more people.9 difficulties monitoring the long and porous borders; (2) Cigarette smuggling is a significant problem in Africa. Correspondence to Dr Kristof Titeca, Research there is a general problem of corrupt government officials In 2007 Africans smoked an estimated 400 billion Foundation-Flanders, Institute of and particularly those who allow large-scale smugglers cigarettes and the illicit market was estimated to be Development Policy and to operate; (3) criminal elements also play an important 15% of the total market,11 meaning over 60 billion Management, Prinsstraat 13, role in smugglingdcigarette smuggling has helped rebel smuggled cigarettes wereconsumedinAfrica.12 Antwerp 2000, Belgium; groups to finance their activities, something illustrated [email protected] This paper examines cigarette smuggling in central through examples from the war economy in the eastern and eastern Africa. As in other countries in Africa13 9 Received 9 November 2010 part of the Democratic Republic of Congo. and elsewhere, the high level of smuggling in Accepted 30 November 2010 Conclusions Our research suggests that cigarette central and eastern Africa has been used by cigarette Protected by copyright. Published Online First smuggling in this region is not primarily the result of manufacturers such as BAT to lobby for lower taxa- 3 February 2011 different taxation levels in neighbouring states, but rather tion14 15 and to influence public policy.16 Particularly the outcome of weak state capacity, high levels of in Uganda, BAT has argued that the high level of corruption and the activities of rebel groups. Under these smuggling and consequent loss of revenue is caused conditions smuggling cigarettes becomes an attractive 17 by high taxation. However, research on cigarette http://tobaccocontrol.bmj.com/ option as taxation is so easily avoided. This explains why smuggling in Europe918showed that smuggling was in the low-income countries in this study there are high not primarily caused by large price differences levels of smuggling in spite of low cigarette prices. between different countries but ‘by frauddby the Comprehensive supply control and enforcement illegal evasion of import duty’.9 The price argument legislation, and cooperation at national, regional and global therefore ‘grossly underestimates the pedigree and level are needed to tackle fraudulent practices facilitated sophistication of parallel trading circuits’.19 by corruption at state level, and to effectively punish This article illustrates the sophistication of this interaction between cigarette traders and rebel groups. illegal trade in central and eastern Africa. It suggests that other factors, such as long and porous borders, government corruption and the presence of criminal elements play the major roles in cigarette smuggling, on October 8, 2019 at University of Cape Town Libraries. rather than tax/price differences. This paper draws on INTRODUCTION qualitative and ethnographic data that reveal the Cigarette smuggling is a global phenomenon with human consequences of smuggling and the weaknesses a clear rationale: it is highly profitable and allows of implementation mechanisms for controlling it. cigarette manufacturers to expand their markets. Cigarette smuggling also offers opportunities for Major companies, such as British American rebel groups, who use it to finance their activities. A Tobacco (BAT) and Philip Morris, have been number of rebel groups are active, especially in the accused of making use of smuggling networks. For Democratic Republic of the Congo (DRC). These example, research by the Center for Public Integrity rebels are accused of serious human rights abuses, accuses tobacco company officials at BATand Philip including mass murder, torture, rape and forced e Morris of being directly connected to organised recruitment of children.20 22 The second Congo crime in various countries (Hong Kong, Canada, war began in August 1998 in the DRC and was the Italy, United States).1 Action on Smoking and biggest interstate war in African history, directly Health (ASH) makes similar accusations against involving nine African countries. The war officially BAT.2 In July 2008 and April 2010 in Canada three ended in July 2003 but a number of armed groups tobacco companies pleaded guilty and admitted remained active in eastern DRC. Since 1998 ‘aiding persons to sell or be in possession of tobacco millions of people have been displaced from their products manufactured in Canada that were not homes, and over five million people have died in the packaged and were not stamped in conformity DRC through the direct and indirect consequences with the Excise Act’.34 of the conflict.23 226 Tobacco Control 2011;20:226e232. doi:10.1136/tc.2010.041574 Research paper Tob Control: first published as 10.1136/tc.2010.041574 on 3 February 2011. Downloaded from METHODS Table 1 Number and type of interviews 24 Researching illicit trade has inherent limitations and little is Category of interviewee, location of interview Number known about cigarette smuggling in this region; for example, it Ugandan smugglers, Arua (Uganda) 155 is missing from a global smuggling analysis in the WHO Tobacco 25 Ugandan customs officials, Arua (Uganda) 44 Atlas and little has been written on the subject. Where written Ugandan community-based association 32 sources exist those concerned (such as government authorities) representatives, Arua (Uganda) are reluctant to make the data (for example, estimates of the Ugandan ‘legal’ traders, Arua (Uganda) 26 amount of smuggling) available for security reasons.18 Primary Congolese smugglers, Aru and Ariwara (DRC) 23 data collectiondfield researchdis also difficult, for obvious Ugandan elders, Arua (Uganda) 19 reasons: participants are secretive about their operations and Ugandan politicians (members of parliament and 14 distrustful of inquisitive outsiders; and it can be physically district councillors), Arua and Kampala (Uganda) dangerous as smugglers can use violence and cooperate with Ugandan journalists, Kampala (Uganda) 11 rebel groups. Ugandan former smugglers, Arua (Uganda) 10 Congolese NGO and community-based association 10 A crucial issue in this kind of research is therefore gaining representatives, Arua (Uganda) Aru and Ariwara (DRC) respondents’ trust, so we relied on anthropological methods. Ugandan tobacco industry actors (company managers), 8 Anthropology involves long-term immersion in a community to Arua and Kampala gain acceptance and establish trust and rapport, and on quali- Ugandan ministry officials, Kampala (Uganda) 7 tative methods like participant observation, interviews and Congolese government officials, Aru and Ariwara (DRC) 6 surveys. It is a discipline which emphasises that human inter- Intelligence officers, Kampala 5 actions can only be fully understood by including the context in Consultants (working in northern Uganda for international 4 which people live.24 This paper is based upon long-term field development organisations), Kampala (Uganda) research on the organisation of smuggling networks in the Congolese customs officials, Ariwara (DRC) 4 Ugandan ‘legal’ traders, Kampala (Uganda) 4 Congo-Uganda-Sudan border region. Ugandan smugglers, Kampala (Uganda) 3 Using anthropological methods KT gained the trust of some Congolese ‘legal’ traders, Aru and Ariwara (DRC) 3 Ugandan smugglers. During the initial phases of the field Sudanese smugglers, Arua (Uganda) 3 e research in 2004 2005, KT made contact with a group of fuel Sudanese civil society representatives, Arua (Uganda) 3 smugglers who in turn introduced him to others in the wider Ugandan journalists, Arua (Uganda) 3 Protected by copyright. 26 27 smuggling economy. Crucial in this kind of field research is Ugandan police officers, Arua (Uganda) 3 cooperation with local people who facilitate entrance to these Congolese tobacco industry actors (company managers), 3 environments.24 KT therefore used two former smugglers (to Ariwara
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