Govt cracks down on counterfeit goods

CLOUDINE MATOLA AND  SAMANTHA MADE

Government is intensifying its crackdown on the rising flood of counterfeit goods, warning that the illicit trade is crippling formal businesses, costing the economy billions of dollars, and putting consumers at risk, Business Times can report.

Authorities are making it clear that this is a fight that Zimbabwe cannot afford to lose.

Speaking at the National Economic Consultative Forum (NECF) dialogue on the consequences of counterfeit products yesterday in the capital Harare, Deputy Minister of Industry and Commerce Raj Modi, representing Minister Nqobizitha Ndlovu, called for an all-hands-on-deck approach, emphasising  the need for stringent measures to protect consumers and the economy.

While the government is tightening enforcement, authorities admitted that they cannot win this battle alone.

The administration acknowledged that  dismantling the  illicit trade networks requires a united front.

“The task before us is so huge that without such stakeholder collaboration, it would be very difficult for government to make the much-needed meaningful impact. Government alone cannot defeat this crisis. We commend the private sector for stepping up, but we need more collaboration to dismantle the networks fueling this illegal trade,” Modi said.

Illicit backyard operations and smuggling syndicates have created a booming black market for counterfeit goods, which are sold at prices far below those of legitimate businesses.

Because these fake products evade taxes, import duties, and regulatory costs, local manufacturers are struggling to compete—threatening jobs jobs and economic growth.

Modi revealed that a recent crackdown led to 1,400 businesses inspected for compliance, 2,000 non-compliant product units seized and prosecutions and penalties for offenders

But he warned that the problem extends beyond Zimbabwe’s borders.

“Noteworthy is the fact that Counterfeit goods often enter through smuggling routes, making this a regional crisis. We need harmonized enforcement across SADC and COMESA to dismantle these networks,” Modi said.

Counterfeit goods have become a significant and alarming issue, with their prevalence expanding rapidly. This surge poses serious economic challenges, including undermining legitimate businesses, creating job losses, and reducing tax revenues.

In Zimbabwe, the situation is particularly concerning.

Illegally imported goods, including soft drinks, detergents, and baby formula—some containing harmful substances—have flooded the market, posing a serious threat to public health and the economy.

The Consumer Protection Commission (CPC) also has raised alarms over the rampant influx of counterfeit goods into Zimbabwe, revealing that the smuggling of these products is occurring on an industrial scale. This situation poses significant risks to public health and undermines local businesses.

In response to this growing threat, the Zimbabwean government has launched a series of initiatives aimed at curbing the influx of counterfeit goods. The Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP) 2024-2025, for instance, strives to contain the influx of smuggled and counterfeit goods that continue to flood the domestic market. ZIRGP focuses on enforcing consumer protection and trade measures legislation, as well as quality standards to guard against smuggled, counterfeit, and substandard goods.

CPC is collaborating with law enforcement agencies and regulatory authorities to curb counterfeit products. This collaboration has resulted in many businesses being found selling fake goods.

While the government’s efforts are crucial, the private sector also plays a vital role in combating counterfeit goods.

Businesses are encouraged to implement robust supply chain management practices to ensure the authenticity of their products. This includes conducting regular audits of suppliers, utilizing technology such as blockchain for traceability, and educating consumers on how to identify genuine products.

Moreover, companies can collaborate with government agencies by sharing intelligence on counterfeit operations and participating in joint enforcement actions. Such partnerships can enhance the effectiveness of anti-counterfeiting measures and protect both businesses and consumers from the detrimental effects of counterfeit goods.

Educating consumers about the risks associated with counterfeit goods and how to identify them is another critical component of the fight against counterfeit products.

Public awareness campaigns can inform consumers about the potential health hazards of counterfeit goods and the economic impact on local industries.

Consumers should be encouraged to purchase products from reputable retailers and to report suspected counterfeit goods to the authorities. By being vigilant and informed, consumers can play a significant role in reducing the demand for counterfeit products and supporting legitimate businesses.

Given the transnational nature of counterfeit goods, international cooperation is essential in addressing this issue. Zimbabwe can benefit from collaborating with neighboring countries and international organizations to share best practices, intelligence, and resources. Such cooperation can lead to more effective border controls, harmonized regulations, and coordinated enforcement actions against counterfeit goods.

The proliferation of counterfeit goods in Zimbabwe poses significant threats to public health, the economy, and the integrity of legitimate businesses.

The government’s intensified efforts to combat this issue, including stricter enforcement measures and collaboration with the private sector, are crucial steps toward mitigating these risks.

However, sustained success requires a comprehensive approach that includes consumer education, robust supply chain management, and international cooperation.

By working together, stakeholders can protect consumers, support legitimate businesses, and strengthen the economy against the detrimental effects of counterfeit goods.