Uganda Revenue Authority (URA) has launched a campaign to stem the surge of smuggling across the country’s major lakes, a growing underground economy that is costing the national treasury of hundreds of millions of dollars every year.

The tax agency says it is losing vast sums of revenue to illicit trade on Lakes Victoria and Albert, where smugglers exploit the vast waters and porous border crossings to move untaxed goods under the cover of darkness.

Lake Victoria is shared by Uganda, Tanzania and Kenya. Lake Albert is shared by Uganda and the Democratic Republic of Congo.

According to URA data, the country loses an estimated $718.3 million annually to illegal fishing and related marine activities, while a further $509 million slips through the broader network of maritime smuggling and illicit water trade.“This is a message to smugglers to watch out,” said URA Commissioner-General John Musinguzi, during the launch of four new high-speed surveillance boats worth Ush3.6 billion ($1.03 million). “Despite our efforts, indicators show that the government is still losing the battle as goods that are not supposed to be on the market continue to find their way in.”The acquisition of the boats marks a strategic increase in URA’s enforcement efforts, targeting a trade route that has long operated beyond the taxman’s reach.

For years, smugglers have exploited the low cost and anonymity of water transport to move contraband goods, from rice and cooking oil to electronics and cigarettes, between Uganda and its neighbours.

In January 2025 alone, URA enforcement officers in Busia intercepted over 500 kilogrammes of Basmati rice, 960 kg of Dunia wheat flour, and several cartons of soap and synthetic hair products in a single night-time operation.

Rice, Mr Musinguzi noted, remains the most smuggled commodity across Uganda’s waters, followed by wheat, cooking oil, and consumer goods such as mobile phones and cosmetics.

The new vessels, he said, would enhance patrols and improve recovery operations on the lakes, which are the two largest corridors for illicit lake trade.

Mr Musinguzi also issued a stern warning to URA’s marine officers against collusion and bribery, emphasising the agency’s focus on meeting its Ush40 trillion ($11.5 billion) revenue target for the financial year.

Economists say the surge in lake smuggling reflects both the sophistication of cross-border crime networks and the persistent tax disparities within the East African region, which encourage traders to exploit weak maritime surveillance.

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