Counterfeits a threat to Zim industry: ZRP

Source: The Herald – Breaking news.

Counterfeits a threat to Zim industry: ZRP Commissioner Paul Nyathi follows proceedings during the National Economic Consultative Forum (NECF) Dialogue on the Consequences of Counterfeit Products in Harare yesterday

Michael Tome, Business Reporter

THE proliferation of counterfeit products in the country poses a serious existential threat to local industry if not abated, Zimbabwe Republic Police (ZRP) national spokesperson Commissioner Paul Nyathi has said.

He made the remarks while addressing delegates at the National Economic Consultative Forum (NECF) Dialogue on the Consequences of Counterfeit Products in Harare yesterday.

The dialogue ran under the theme “Combating Counterfeit Products in Zimbabwe and Fostering Economic Growth,” and sought to foster an all-of-Government approach to curbing the economic menace of counterfeits.

Commissioner Nyathi said the tide of counterfeiting now cut across all sectors of the economy, including fertilisers, seeds and agriculture chemicals.

Counterfeiting has gone to the extent of importing ox-drawn ploughs, which local companies can manufacture to meet local demand.

There is also a proliferation of counterfeit medicines, which pose serious health concerns.

He said some individuals were making beverages they falsely claimed had medicinal properties, without being cleared by the Medicines Control Authority of Zimbabwe or the Ministry of Health and Child Care.

Fake vehicle parts have also entered the market, which may lead to increased road accidents.

Authorities have busted some illegal operators who produced fake brakes and brake fluid.

Commissioner Nyathi said customers were hoodwinked through identical and attractive packaging, which sometimes looks better than genuine products.

Efforts to tame the unscrupulous practices have fallen short of the action required to resolve the challenge of counterfeit items.

This indicates the complexity of the situation, including limited enforcement of laws, low consumer awareness and strong demand for cheaper alternatives.

“If people take this counterfeiting issue for granted, they will wake up with no industry in Zimbabwe because the impact and implications are very broad, to be honest, and it is cutting across all sectors of the economy; look at agriculture which is being supplied with fake fertiliser, fake seed and fake chemicals.

“And as police we are saying, social and economic development of any country cannot effectively take place where there is no order.

“From a health point of view, this is a security threat because we now have people bringing in fake vaccines, and some people are cashing in between US$20 000 and US$60 000 per week from these illicit deals,” said Commissioner Nyathi.

Speaking at the same event, deputy chief secretary in the Office of the President and Cabinet Engineer Amos Marawa said the proliferation of counterfeit goods had far-reaching implications that extend beyond economic repercussions.

He said the products posed a significant threat to public health, consumer safety, industrial competitiveness, and the integrity of Zimbabwe’s markets.

“The issue of counterfeit goods is not just an economic concern. It is a matter that affects public health, consumer safety, industrial competitiveness and the integrity of our markets.

“The global economic impact of counterfeit and pirated goods is staggering, with billions of dollars lost annually and millions of jobs affected. Zimbabwe, like many other nations, has not been spared from this crisis.

“It is, therefore, incumbent upon us as policymakers, industry leaders, law enforcement officials, and stakeholders to come together and forge sustainable solutions,” said Eng Marawa.

Buy Zimbabwe chief executive, Mr Alouis Burutsa, said the issue warranted urgent attention, given its potentially severe consequences for the Government’s fiscal health.

He added that the alarming decline in Government revenues was directly linked to the decrease in tax collections, which could have a ripple effect on the entire economy.

“Government is no longer collecting as much because everyone is counterfeiting and informalising. Through the Ministry of Justice (Legal and Parliamentary Affairs), we appeal to you to be serious about these things and put in place serious deterrent measures.

“If somebody is caught with a pangolin, they go to jail for nine years. But someone who is killing the economy is given a fine of US$30 and goes scot-free. It does not make sense.

“So, we need to be serious as a country and start taking these things and label these people economic saboteurs and deal with them as such,” said Mr Burutsa.

Trade in counterfeit goods has become a significant and alarming issue globally, with its prevalence expanding rapidly. This surge poses serious economic challenges, including undermining legitimate businesses, creating job losses, and reducing tax revenues.

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