Illicit Alcohol: A Cost too High to Ignore

By Michelo Maunga

The World Trade Organization[1] defines illicit trade as the sale of goods in a manner that violates national or international law. A good can be deemed such on the basis of its characteristics,  the methods used in its distribution, marketing, labelling and/or production. Across the world and in Zambia, the economic costs of this are substantial[2]. The human cost, which will be this article’s premise, is even more  troubling. According to Chainama Hills Hospital, 56% of new patients are related to alcohol and substance abuse (2024), with an average patient age of 19.5.

Zambia, possesses a youthful population. 35% of our population is between the ages of 15 and 35[3]. It is generally desirable for a country to have a large number of young people, who are more adept at driving productive capacities through employment and entrepreneurship. Indeed, it is the youth who manufacturers need as human capital in plants. However, this demographic dividend is rapidly being threatened by the scourge of illicit alcohol. A study by Kasoka Mungandi et al (2025) sought to quantify alcohol consumption amongst those aged 16-25, which was further segmented into the groups, 16-19 and 20-24. In a sample obtained from Kanyama and Matero, it was found that 80% of participants had consumed alcohol before. Worrisomely, 60.4% of respondents aged between 16-19, had reported consuming alcohol, many of whom were below the permissible age.

The rise of illicit alcohol in Zambia can be attributed to several factors. However, the focus here will be on enforcement of legal provisions and tax policy. Beginning with the former, the Liquor Licensing Act (2011) is the guiding piece of legislation for alcohol consumption in Zambia. It is centred on regulation of the manufacture, possession, sale and supply of intoxicating liquors. It does this, primarily, through a licensing process, i.e. alcohol is only to be sold by and on premises, licensed by a Local Authority. This serves as a control measure against the abuse of alcohol by individuals, which affects their physical health and social harmony. While the Act explicitly outlaws the sale of alcohol by an unlicensed retailer, this has become widespread in most of our communities. Today, alcohol is sold in nearly every local grocery store, worse still, spirits are sold in full view of authorities in markets, bus stations and peri-urban settlements.

Besides the above license requirement, several other, if not all provisions of the Liquor Licensing Act, are abrogated. Section 28, for instance, bans misrepresentation of a product often by illegitimate brewers, in which a beverage bears the branding of a more established brand. The same section mandates affixation of alcoholic content on all alcoholic beverages. Members of ZAM have been directly affected by infringements in the above respects, i.e. where an illicit brew bears the details of  one or more of our members. Our research has also revealed gross inaccuracy in reporting of alcoholic content, with much of what is illegally available being more potent than is guided on packaging.  Section 35 goes further to ban the sale of alcohol to children. Seldom, however, do bar or shop owners verify the age of a customer seeking to purchase alcohol. It is important to note that violation of any of the above provisions attracts penalties ranging from 1  to 5 years in prison. Regrettably, despite these deterrents, producers, distributors and retailers continue, with impunity, to flout the law.

I will end with what ZAM is doing to mitigate the spread of illicit trade. On 13th June 2025, ZAM organized a training for Law Enforcement Agencies in identification of illicit products and operations, attended by the Zambia Revenue Authority (ZRA), Zambia Police (ZP), Drug Enforcement Commission (DEC) and the Anti-Corruption Commission (ACC). Further to this, On 21st August 2025, immediate past President of ZAM, Mr. Ashu Sagar, led a delegation of manufacturers in paying a courtesy call to the Head of State, Mr. Hakainde Hichilema. Top of discussion items was illicit trade, where the ZAM team urged the President to constitute a National Task Force to limit its spread. This Task Force was launched  by the Minister of Commerce, Trade & Industry, Hon. Chipoka Mulenga, with guidance from of the Republican President, on 11th September at the Taj Pamodzi Hotel.

Looking forward, in 2026, ZAM will consolidate these efforts and seek quantifiable reductions in illicit trade, particularly in the alcoholic beverage, tobacco and food products sectors. This shall not only save our young people but also support the treasury, with an annualized estimated revenue gain of ZMW12.31 billion. Additionally, we expect formal job creation as a result of this effort, due to increased demand for products of legitimate players. All told the cost of inaction far exceeds the cost of action. As ZAM we are committed to realizing all these benefits and ultimately freeing our society from this ill.

The Author is Policy Analyst at the Zambia Association of Manufacturers and Member of the Economics Association of Zambia.


[1] Problem of Illicit Trade in Medical Products, World Trade Organization

[2]  Illicit Trade in Zambia, ZAM 2025

[3] Zambia’s young people and road to 2030, MYSA 2023

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