CZR raises alarm over trade in counterfeit goods

Judith Phiri

Zimpapers Business Hub

THE Confederation of Zimbabwe Retailers (CZR) has called for an urgent multi-agency enforcement operation to combat the growing trade in counterfeit or fraudulent electronic goods across the country.

The trend, which has become rampant in most parts of the country, is now happening even in broad daylight and common places such as the central business districts (CBDs) of major cities and towns.

In a letter to the Zimbabwe Republic Police, Harare Metropolitan Province Commander, Commissioner Maxwell Chikunguru, CZR president Dr Denford Mutashu warned that the issue had reached alarming levels.

The illicit trade, he said, was undermining consumer protection and fair business practices.

“The CZR, representing the interests of formal retailers and wholesalers across Zimbabwe, is gravely concerned by the growing infiltration of counterfeit, refurbished and fraudulently marketed electronic goods, particularly smartphones, tablets, laptops and related accessories, within the Harare Central Business District,” he said.

“We are writing to formally request your urgent intervention and collaboration in conducting a multi-agency enforcement operation targeting these illegal activities, which have reached alarming levels and are undermining the integrity of the retail sector, defrauding unsuspecting consumers, and weakening regulatory compliance.”

He said CZR had not only received widespread reports from affected consumers and retailers, but that some of its officials had witnessed the fraudulent practices firsthand.

Dr Mutashu said a phone purchased from a store in central Harare malfunctioned within days of use.

“Attempts to seek a refund or replacement proved futile, with the seller becoming evasive and belligerent, clearly demonstrating the impunity with which these shops operate. This single case is a microcosm of the daily exploitation faced by hundreds of Zimbabwean consumers.”

He said the sellers of the counterfeit goods were misrepresenting refurbished or used devices as brand new, violating intellectual property laws and evading tax obligations, as they did not issue receipts for a sale or use registered trading names.

Because the businesses operate outside consumer protection and telecommunications regulatory frameworks, they often have no traceable physical or legal identity.

Dr Mutashu said the implications were far-reaching, with legitimate retailers facing unfair competition from unscrupulous operators, while the Government was losing significant potential revenue due to tax leakages.

Unsuspecting consumers, who are at the mercy of these unscrupulous retailers, are left without any avenues for recourse.

“The credibility of Zimbabwe’s retail and regulatory environment is severely compromised. CZR therefore appeals for a joint law enforcement and regulatory sweep, involving your respective offices, to identify and investigate non-compliant gadget and electronics shops and seize counterfeit goods and shut down illegal operations.”

Dr Mutashu said there was a need to also penalise and prosecute offenders under the relevant laws, including the Consumer Protection Act and Customs and Excise regulations, enforce proper tax compliance and trading documentation as well as publicly educate and warn consumers against such establishments.

He said they proposed the formation of a multi-agency task force to conduct a coordinated blitz and adopt a zero-tolerance policy towards these dangerous and predatory business practices.

“CZR stands ready to assist with intelligence, stakeholder mobilisation, and coordination.

“We believe your collective action will not only restore order in this sector but also reaffirm the Government’s commitment to protecting consumers, promoting fair trade, and reinforcing the rule of law. We look forward to your positive response,” he said.

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