Online Reporter
Michael Tome, Business Reporter
INDUSTRY players have called for stiffer penalties on those producing counterfeit products, warning that weak enforcement measures are fuelling a rapidly growing illicit trade that threatens public health, investor confidence and national revenue.
Speaking at the Zimpapers Public Lecture Series on the scourge of counterfeit products on Thursday, business leaders said the fight against counterfeit goods must be elevated to the same level as the country’s anti-drug campaign.
According to the stakeholders, the proliferation of counterfeit goods is significantly eroding the competitiveness of the formal sector and stifling investment into local industry.
A counterfeit is defined as a fraudulent imitation of a genuine product, document or currency, created with the intent to deceive or defraud by appearing legitimate.
This comes as manufacturers across the board complain about the increasing imitation of their products on the local market.
The tide of counterfeiting is now broad and is haemorrhaging local industry.
Most counterfeits are being produced in “backyard” industries and include everyday items such as lotions, toothpaste, peanut butter, shoe polish, cooking oil, wines, spirits, baked beans, spices, beverages, heat rub and cough syrup.
The menace has further expanded to include fertilisers, seeds and agricultural chemicals.
Particularly disheartening is the importation of counterfeit ox-drawn ploughs — branded with local company names — despite the fact that the local industry has the capacity to manufacture these and meet domestic demand.
Of even greater concern is the production of counterfeit medicines, which places the general populace at significant health risk.
Some of these informal operations are even producing beverages they claim have medicinal properties, despite having no clearance from the Medicines Control Authority of Zimbabwe (MCAZ) or the Ministry of Health and Child Care.
Recent developments have also seen the emergence of fake vehicle parts, which have disturbingly been linked to several road accidents.
Customer deception is being exacerbated by identical and attractive packaging, which is occasionally of higher visual quality than the original products.
Businesses singled out Mbare as a major hotspot for the manufacture and repackaging of these fake goods.
Speaking at the event, Buy Zimbabwe chief executive officer, Mr Alois Burutsa, criticised lenient fines, claiming that individuals caught dealing in counterfeit goods often walk away effectively “scot-free” after paying a negligible fee.
“We need to take this fight to the same level as the fight against drug abuse. That fight has been elevated, but we are not seeing the same seriousness when it comes to counterfeits,” he said.
“If you are caught producing or selling counterfeits, the fine is only US$30. That clearly shows we are not serious. It should be a deterrent, similar to how stock theft attracts prison sentences of up to nine years.”
Mr Burutsa said the counterfeit trade has evolved into a sophisticated and highly profitable global enterprise, noting that the global counterfeit market is valued at approximately US$1,6 trillion and is expanding by about 15 percent annually.
Consumer Protection Commission (CPC) Research and Public Affairs Director, Mr Kudakwashe Mudereri, stated that authorities are working on a Statutory Instrument aimed at strengthening enforcement and making penalties more deterrent.
“US$30 is very low, but I would like to clarify that it is just an admission of guilt,” he said.
“Under Section 36 of the Consumer Protection Act, the penalty can be up to US$3 000, but that is still low.
“In the medium to long term, we need a dedicated Anti-Counterfeit Act with comprehensive provisions that specifically deal with counterfeit products. This is what other countries are doing.”
Harare Institute of Technology (HIT) Vice-Chancellor, Professor Quinton Kanhukamwe, said the influx of counterfeit and substandard goods is exacting a heavy toll on Zimbabwe’s economy, undermining industrial growth and eroding tax revenues.
He noted that the proliferation of fake products hurts legitimate businesses and weakens investor confidence at a time when the country is pushing to accelerate industrialisation under Vision 2030.
Companies in attendance, including National Foods, Dairibord Zimbabwe and Varichem, called for urgent action to end the proliferation of fake products.
Zimbabwe’s business community argues that without tougher sanctions and coordinated enforcement, counterfeit goods will continue to compromise consumer safety and threaten the broader economic re-form agenda.
Tackling the scourge will require tighter border controls, stronger regulatory enforcement, enhanced market surveillance and greater consumer awareness.
As Zimbabwe seeks to expand its manufacturing base, curbing the counterfeit economy remains central to safeguarding both public welfare and long-term economic transformation.
The event was sponsored by National Foods, Eversharp, Seed Co, Varichem Pharmaceuticals, MedTech Holdings, AFDIS, Ganzim, the Consumer Protection Commission of Zimbabwe and Bureau Veritas.
Londile Moyo