A new Oxford Economics report shows Uganda Breweries Limited supported 100,000 jobs and UGX 811 billion in tax revenue, while warning that illicit alcohol now dominates Uganda’s market.
Uganda Breweries Limited (UBL) supported approximately 100,000 jobs and generated an estimated UGX 811 billion in tax revenue during the 2024/25 financial year, according to a new independent report by Oxford Economics Africa that highlights the brewer’s growing economic footprint while warning of the expanding illicit alcohol market.
The report, unveiled in Kampala on Tuesday, found that UBL contributed UGX 1.127 trillion in Gross Value Added (GVA) to Uganda’s economy, representing around 4 percent of the country’s manufacturing output.
It also supported nearly 35,000 smallholder farmers through its local sourcing initiatives, reinforcing the brewer’s role in agriculture, manufacturing, retail and hospitality.
The findings come as Uganda reviews its excise tax framework and broader fiscal policies affecting the alcohol industry.
However, the report identified illicit alcohol as one of the biggest threats to both government revenue and the formal manufacturing sector.
It estimates that 67 percent of all alcohol consumed in Uganda by volume is illicit, with unregulated products selling for as much as 80 percent less than legally manufactured alternatives.
Speaking during the report launch at Sheraton Kampala Hotel, Private Sector Foundation Uganda Chief Executive Officer Stephen Asiimwe warned that the illicit trade undermines economic growth while exposing consumers to significant health risks.
“Illicit alcohol does not just cost the government revenue; it puts consumers at real risk because there is no oversight of what is actually in the bottle. Every litre that shifts from the formal to the informal market pays no tax, creates no formal job and offers no safety guarantee,” he said.
UBL Managing Director Felicite Nson said the study was commissioned to provide policymakers with independent evidence as government considers reforms to Uganda’s tax regime.
“The decisions shaping Uganda’s alcohol industry should be guided by credible evidence. This report demonstrates the significant contribution compliant businesses make to employment, manufacturing, agriculture and tax revenue,” she said.
Representing the Ministry of Trade, Industry and Cooperatives, State Minister Sanjay Tanna welcomed the report, saying data-driven policymaking is essential for economic transformation.
He noted that UBL’s operations generated UGX 203 billion in direct GDP contribution, with an additional UGX 267 billion flowing through its supply chain and UGX 552 billion from downstream economic activity.
To strengthen the formal economy, Oxford Economics recommends introducing a multi-year, inflation-linked excise tax framework, preserving tax incentives for locally sourced agricultural inputs, intensifying enforcement against counterfeit and smuggled alcohol, and harmonising excise policies across the East African Community to curb cross-border illicit trade.
The report concludes that a stable and predictable regulatory environment will be critical in safeguarding government revenue, protecting consumers and encouraging long-term investment in Uganda’s manufacturing sector.