East Africa is being critically undermined by illicit trade, according to the new report.
According to the report, ‘An Unholy Alliance: Links Between Extremism and Illicit Trade in East Africa’ from the Counter Extremism Project (CEP), terror groups, urban gangs, and international crime groups are increasingly targeting East Africa as a destination market for illicit trade.
Illicit trade consists of the exchange of a good or service between individuals or organisations where either the commodity or the unregulated manner of the exchange is deemed illegal in a given jurisdiction.
In addition, using the region as a transport hub for the mass import and export of illegal goods.
The report finds out that terrorist groups continue to cash in on the illegal ivory trade to pay their soldiers and fund their campaigns of terror, while Somali warlords profit from the thousands of bags of cheap, illicit sugar that are smuggled into Kenya every day.
Sir Ivor Roberts, CEP senior advisor and author of the report, outlined the difficulties faced by the region: “As illicit trade networks continue to expand and mature in their sophistication, the cost to East African society has been enormous. At every link in the illicit chain, economic, social, and political harm is done to East African society, while terror and crime groups grow stronger.”
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Many terrorist and extremist groups operating in and around East Africa, including al-Shabaab, ISIS, and the Lord’s Resistance Army, are supported and sustained by the illicit trade, as they continue to benefit from ill-gotten gains. Asian crime syndicates, Latin American narco-traffickers, and other international crime groups have also earmarked the region as a key location for smuggling narcotics, wildlife, precious stones, and counterfeit goods.
Sir Ivor believes the region must prioritise measures that target illicit trafficking.
“The most effective way from the East African region, and the wider international community, to fight extremism, crime, and corruption is to turn off the taps of illicit trade.,” he said.
This can ensure critical revenues are not lost to the shadow economy but are instead invested in key services.
“Combating illicit trade should be the number one priority for East African governments and their international allies. This issue goes beyond the borders of East Africa, and it is imperative that the international community pay heed,” he says.
Every year, Kenya alone loses USD 900 million to counterfeit products, according to the country’s Anti-Counterfeit Authority (ACA).