Online Reporter
Nelson Gahadza
Deterrent sentencing, beyond the current paltry fines of around US$30, and a significant shift in consumer mindset are crucial to effectively combat smuggling and counterfeiting of products.
These concerns were highlighted at the National Economic Consultative Forum (NECF) Dialogue on the Consequences of Counterfeit Products held in Harare on Wednesday.
The dialogue, themed “Combating Counterfeit Products in Zimbabwe and Fostering Economic Growth,” aimed to promote a unified, government-wide strategy to address the pervasive economic threat of counterfeit goods.
Counterfeiting now infiltrates all sectors of the Zimbabwean economy, including vital areas such as fertilisers, seeds, and agricultural chemicals.
Industry stakeholders assert that counterfeit and smuggled goods are severely undermining the competitiveness, market share, and brand reputation of local businesses. The Confederation of Zimbabwe Retailers (CZR) estimates that a staggering 50 percent of products sold in informal shops are smuggled or counterfeit.
While government agencies, notably the Zimbabwe Revenue Authority (ZIMRA) and the Zimbabwe Republic Police (ZRP), are conducting nationwide crackdowns on smuggled and counterfeit goods, their efforts are hampered by lenient existing laws.
ZIMRA Commissioner Regina Chinamasa, in a presentation delivered by Alick Mutandiro, emphasised that ZIMRA’s prosecution efforts are limited by the current legal framework.
“It is demotivating from an investigative perspective after the efforts someone is fined US$30 and walks free. We would like to appeal to the Justice and Parliamentary Affairs Ministry to review the current legislation and put sentences that deter others from doing the same,” she stated.
Chinamasa also called for the expedited enactment of a whistleblower protection bill, which she deemed essential in the fight against corruption and counterfeit product manufacturing.
“Whistleblowers that will come through will give you limited intelligence. When you start probing further, they start asking, How am I going to be protected? The danger with that is that they refuse the information they have on you; they go to the person they want to report and tell him that you have been reported, but I have control. They make money out of it,” she said.
Whistleblowing is critical to combatting corruption in both the public and private sectors. Protecting whistleblowers from retaliation for reporting suspected corruption and wrongdoing is vital for promoting public sector integrity, accountability, and a clean business environment.
Buy Zimbabwe chief executive Alouis Burutsa stressed that given the severe potential consequences on Government revenue and industry health, penalties must serve as a strong deterrent.
“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,” he argued.
He highlighted the alarming decline in Government revenues, directly linked to reduced tax collections, which has a cascading 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,” Burutsa urged.
Treger Products managing director Martin Lock echoed the call for deterrent measures, including banning the importation of smuggled and counterfeit products.
“The temptation of the US Dollar is very tempting and serious and with the coming up of the Africa Free Trade Continental Area (AFTCA) the country should protect its industries,” he said.
He pointed out that Botswana and Zambia have already raised import tariffs in preparation for AFTCA.
According to the Confederation of Zimbabwe Industries (CZI), a collaborative approach is essential to curbing counterfeiting.
Mucha Mukanganwi, the CZI president, warned that enforcement blitzes are unsustainable and susceptible to corruption. “Community cooperation is also critical,” he said.
Mkanganwi suggested that formalising the informal sector could also reduce counterfeiting, as incentives for informality drive the practice. He identified tuckshops as a primary outlet for counterfeit goods.
The proliferation of counterfeit products extends to ox-drawn ploughs, which local companies have the capacity to manufacture, and counterfeit medicines, which pose significant health risks.
He revealed that some individuals are producing beverages falsely marketed as having medicinal properties, without approval from the Medicines Control Authority of Zimbabwe or the Ministry of Health and Child Care.
The influx of fake vehicle parts also raises serious safety concerns, potentially contributing to increased road accidents.
Bongani Ndlovu