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Blood cigarettes: cigarette smuggling and war economies
in central and eastern Africa
Kristof Titeca, Luk Joossens, Martin Raw
To cite this version:
Kristof Titeca, Luk Joossens, Martin Raw. Blood cigarettes: cigarette smuggling and war economies
in central and eastern Africa. Tobacco Control, BMJ Publishing Group, 2011, 20 (3), pp.226.
�10.1136/tc.2010.041574�. �hal-00605634�
Blood cigarettes: cigarette smuggling and war economies in central and
eastern Africa
Kristof Titeca
1
, Luk Joossens
2
, Martin Raw
3
1. Research Foundation - Flanders, Institute of Development Policy and Management,
University of Antwerp, Prinsstraat 13, 2000 Antwerp, Belgium
Kristof.Titeca@ua.ac.be
2. International Expert on Illicit Trade in Tobacco, Framework Convention Alliance, Brussels,
Belgium
3. Special Lecturer, UK Centre for Tobacco Control Studies, Division of Epidemiology and
Public Health, University of Nottingham
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Key words: Cigarette smuggling, war economy, tax evasion, tobacco control, Africa
Submitted: 07.06.10
Revision invited: 10.08.10
Resubmitted: 10.11.10
Word count: 4476
Author competing interests
None.
Acknowledgements
KT's work on this project was supported by the Research Foundation, Flanders and the
Institute for Development Policy and Management, University of Antwerp, to whom he is
extremely grateful.
Ethical review
Field research was conducted by the first author. His research followed all necessary research
protocols of both his funding institution (Research Foundation, Flanders) and his research
institute (Institute of Development Policy and Management). As this research project did not
involve trials on humans or animals, the codes of ethics in Belgium do not require a separate
and specific ethics review for financing this project. However, the research institute of the
first author verifies through its screening and monitoring procedures that relevant ethical
standards are adhered to by the staff employed.
Abstract
Objective: Analyze cigarette smuggling practices in central and eastern Africa.
Methods: Primary data were gathered during long term qualitative field research in which
about 400 interviews were conducted. Analysis of secondary sources included academic
literature and reports from NGOs, multilateral organisations and the press.
Results: Our research suggests that the following factors play an important role in cigarette
smuggling in eastern and central Africa: 1) government officials encounter difficulties
monitoring the long and porous borders; 2) there is a general problem of corrupt
government officials and particularly those who allow large-scale smugglers to operate; 3)
criminal elements also play an important role in smuggling – cigarette smuggling has
helped rebel groups to finance their activities, something illustrated through examples from
the war economy in the eastern part of the Democratic Republic of Congo.
Conclusions: Our research suggests that cigarette smuggling in this region is not primarily
the result of different taxation levels in neighbouring states, but rather the outcome of weak
state capacity, high levels of corruption and the activities of criminals. Under these
conditions smuggling cigarettes becomes an attractive option as taxation is so easily
avoided. This explains why in the low-income countries in this study there are high levels
of smuggling inspite of low cigarette prices. Comprehensive supply control and
enforcement legislation, and cooperation at national, regional and global level are needed
to tackle fraudulent practices facilitated by corruption at state level, and to effectively
punish interaction between cigarette traders and rebel groups
.
What this paper adds
Previous research on cigarette smuggling in Europe documents how smuggling is not
primarily the result of different taxation levels but rather of fraud. This paper adds
previously unavailable insights on how cigarette smugglers operate in eastern and central
Africa through the use of qualitative and ethnographic data. These data allow detailed
insight into the human mechanisms and consequences of smuggling, and the weak
implementation enforcement mechanisms. They show how cigarette smuggling in Africa is
the outcome of weak state capacity, high corruption levels, and the activities of rebel
groups.
Introduction
Cigarette smuggling is a global phenomenon with a clear rationale: it is highly profitable and
allows cigarette manufacturers to expand their markets. Major companies, such as British
American Tobacco (BAT) and Philip Morris, have been accused of making use of smuggling
networks. For example, research by the Center for Public Integrity accuses tobacco company
officials at BAT and Philip Morris of being directly connected to organized crime in various
countries (Hong Kong, Canada, Italy, United States) (1). Action on Smoking and Health
(ASH) makes similar accusations against BAT (2). In July 2008 and April 2010 in Canada
three tobacco companies pleaded guilty and admitted “aiding persons to sell or be in
possession of tobacco products manufactured in Canada that were not packaged and were not
stamped in conformity with the Excise Act” (3,4).
Further, cigarette smuggling is detrimental to health policy (5,6) and the WHO Framework
Convention on Tobacco Control (FCTC) emphasises the importance for tobacco control of
combating illicit trade (7). Smuggling undermines tax revenue and promotes corruption (8);
by lowering price, consumption is increased (9); and smuggling promotes the development of
new markets and better exploitation of old ones (10). For example, smuggling may lower the
price of western tobacco brands, making them affordable to more people (9).
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Map about here
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Cigarette smuggling is a significant problem in Africa. In 2007 Africans smoked an estimated
400 billion cigarettes and the illicit market was estimated to be 15% of the total market (11),
meaning over 60 billion smuggled cigarettes were consumed in Africa(12).
This paper examines cigarette smuggling in central and eastern Africa. As in other countries
in Africa (13) and elsewhere (9), the high level of smuggling in central and eastern Africa has
been used by cigarette manufacturers such as BAT to lobby for lower taxation (14,15) and to
influence public policy (16). Particularly in Uganda, BAT has argued that the high level of
smuggling and consequent loss of revenue is caused by high taxation (17). However, research
on cigarette smuggling in Europe (9,18) showed that smuggling was not primarily caused by
large price differences between different countries but “by fraud – by the illegal evasion of
import duty”(9). The price argument therefore “grossly underestimates the pedigree and
sophistication of parallel trading circuits” (19).
This article illustrates the sophistication of this 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, rather than
tax/price differences. This paper s draws on qualitative and ethnographic data that reveal the
human consequences of smuggling and the weaknesses of implementation mechanisms for
controlling it.
Cigarette smuggling also offers opportunities for criminals such as rebel groups, who use it to
finance their activities. A number of rebel groups are active, especially in the Democratic
Republic of the Congo (DRC). These rebels are accused of serious human rights abuses,
including mass murder, torture, rape and forced recruitment of children (20,21,22). The
second Congo war began in August 1998 in the DRC and was the biggest interstate war in
African history, directly involving nine African countries. The war officially ended in July
2003 but a number of armed groups remained active in eastern DRC. Since 1998 millions of
people have been displaced from their homes, and over 5 million people have died in the DRC
through the direct and indirect consequences of the conflict (23).
Methods
Researching illicit trade has inherent limitations (24) and little is known about cigarette
smuggling in this region; for example, it is missing from a global smuggling analysis in the
WHO Tobacco Atlas (25) and little has been written on the subject. Where written sources
exist those concerned (such as governmental authorities) are reluctant to make the data (for
example estimates of the amount of smuggling) available for security reasons (26). Primary
data collection – field research – is also difficult, for obvious reasons: participants are
secretive about their operations and distrustful of inquisitive outsiders; and it can be
physically dangerous as smugglers can use violence and cooperate with rebel groups.
A crucial issue in this kind of research is therefore gaining respondents' trust, so we relied on
anthropological methods. Anthropology involves long-term immersion in a community to
gain acceptance and establish trust and rapport, and on qualitative methods like participant
observation, interviews and surveys. It is a discipline which emphasises that human
interactions can only be fully understood by including the context in which people live (27).
This paper is based upon long-term field research on the organisation of smuggling networks
in the Congo-Uganda-Sudan border region.
Using anthropological methods KT gained the trust of some Ugandan smugglers. During the
initial phases of the field research in 2004/2005, KT made contact with a group of fuel
smugglers who in turn introduced him to others in the wider smuggling economy (28,29).
Crucial in this kind of field research is cooperation with local people who facilitate entrance
to these environments (27). KT therefore used two former smugglers (to some extent still
engaged in the smuggling economy) as research assistants. Their cooperation was crucial in
gaining the trust of actors in the regional smuggling economy. The fact that KT has been
working with these traders since 2005 with no leaks of sensitive information also helped to
establish his trustworthiness.
Interviewees Over 400 interviews were conducted over 6 years (2005-2010), 184 (44½%)
with smugglers (Table 1). Interviews were also conducted with government and customs
officials. Relationships of trust were established with several customs officials who became
key informants. Others directly and indirectly related to the smuggling economy were
