Source: War on counterfeits: SAZ, private sector to collaborate | The Sunday Mail
Nelson Gahadza
COUNTERFEITS have emerged as being among the most urgent issues authorities must resolve decisively given their potential negative impact on companies, the economy and public health.
Generally speaking, counterfeits are fake or unauthorised replicas of genuine items, often created to deceive consumers into believing they are buying authentic goods.
They can range from luxury items to everyday goods, and pose risks to consumers and legitimate businesses.
While the authorities have zero tolerance for trade in illicit goods, the nature and complexities of trading make it difficult to curtail.
The authorities say the bulk of fake goods find their way into the domestic market as smuggled goods, another major challenge giving the regulators sleepless nights.
The products are also manufactured in backyard industries in Zimbabwe.
The Zimbabwe Republic Police (ZRP) is on record saying that if not curtailed, the goods’ smuggling could silently decimate the entire local industry and cause unimaginable public health problems.
Challenges posed by counterfeits and the potential implications across the different facets of the economy and social strata saw the National Economic Consultative Forum (NECF) organising a one-day indaba with key stakeholders on solutions to these growing problems.
At the event, the Government said local authorities should play a leading role in combating the proliferation of such undesirable goods, which pose serious threats to public health and the economy.
It believes formal and unregistered shops, as well as vending areas that accommodate such items, fall under the direct purview of local authorities.
Counterfeit goods are now prevalent across all sectors of the economy. They include fertilisers, seeds and agricultural chemicals.
Zimbabwe’s industrial players believe illicit goods threaten local manufacturers’ competitiveness, market share and brand reputation, posing a serious existential threat.
These are often cheaper than genuine products because they are made with lower-quality materials, lack rigorous quality testing and do not incur the same costs associated with brand research, development and marketing.
The growing informal sector in Zimbabwe, which now accounts for more than 65 percent of the economy, has fuelled the trade in counterfeits and smuggled products.
Local Government and Public Works Deputy Minister Mr Albert Mavhunga told the NECF dialogue on Wednesday that in Harare, local authorities were partly to blame for their proliferation..
“As Local Government, we need to ensure that our 93 local authorities across the country come and play ball when it comes to combating these counterfeit products that are finding their way into the hands of our consumers.
“That means we need to enforce the current policies and bylaws that we have as local governments, which align not only to our Constitution of Zimbabwe but also to the Vision 2030,” he said.
He said Vision 2030 seeks to create a prosperous and empowered upper middle-income society and that one of the ministry’s roles is to promote local economic growth.
“Therefore, as we enforce the current laws that are within local governments, there is also a need to relook at the current policies and laws that are there so that they can adapt to the current economic environment that we are facing right now in the country,” said Mr Mavhunga.
The Government, through its agencies, the Zimbabwe Revenue Authority (Zimra) and the ZRP, has launched a nationwide crackdown on smuggled goods, seizing over US$2,4 million worth of illicit products.
The effort is part of a larger initiative to combat smuggling and trade in counterfeit goods. Mr Mavhunga said local governments should support the task forces set up by the authorities to deal with counterfeits and contraband in terms of the country’s laws and policies to eliminate the illegal trade.
He said in Harare and Bulawayo, the pavements had become vending stores and havens for counterfeit goods.
Mr Mavhunga said local authorities should be vigorous in their inspections and enforcement of laws and policies.
“We know local authorities have police officers and these need to be encouraged to collaborate with the police (ZRP) and Zimra when it comes to fighting these criminals that are bringing these counterfeit products onto our streets.
“We need to equip them so that when they engage community members, they talk about these counterfeit products and consumer protection so that our economy can take down from the grassroots level,” he said.
He added that the council officers also needed to be trained on identifying counterfeit products when carrying out inspections.
“They need to be able to identify what is fake and what is real; hence, there is a need for capacity building and training across the board,” said Mr Mavhunga.
He said the ministry would lobby for artificial intelligence to improve the speed of reporting counterfeit products.
“We need to use specialised chatbots through WhatsApp, council platforms and local authorities so that consumers and residents can easily use technology to report quickly for us to take action,” he said.
According to the Confederation of Zimbabwe Industries (CZI), the trade in counterfeits is thriving, damaging the brand reputation of several companies.
The products most vulnerable to counterfeiting include clothing and accessories, electronic gadgets and cosmetics; and food and beverages.
CZI chief economist Dr Cornelius Dube said local industry and Government revenues had suffered extensively from the illicit trade.
“The issue of the loss of Government revenue is straightforward, counterfeit products are sold in informal markets, they do not even find their way into formal shops, where the Government gets its fair share of tax revenue.
“But most importantly, from an industry point of view, the local business community has significantly been undermined, especially given that the counterfeit products take up a significant market share,” he said.
ZRP national spokesperson Commissioner Paul Nyathi said if counterfeits are taken for granted, the country would one day wake up with no industry to talk about.
“The scourge is cutting across all sectors of the economy. Look at agriculture and fake fertilisers. We have people coming up with some beverages they claim to have medicinal properties.
“But when you check, they have not been cleared by the Medicines Control Authority of Zimbabwe and the Ministry of Health and Child Care,” he said.
Commissioner Nyathi said as the police, their challenges include limited expertise to identify substandard products.
He said police officers had since partnered with the Standards Association of Zimbabwe and private sector players to assist in identifying substandard products.
“We must make sure that checks and balances are put in place, including checks in the shops that are operating in our cities, including checking people who are operating businesses in the backyard,” he said.
Two weeks ago, he said the police enlisted the services of some private sector players to assist in identifying fake brake fluids and brake pads.
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