Zimbabwe loses US$1,2 billion annually to counterfeit goods

Theseus Shambare

ZIMBABWE is losing an estimated US$1,2 billion every year to counterfeit and illicit products, a situation that is undermining legitimate businesses, draining Government revenue and threatening consumer safety.

This emerged during the launch of the National Consumer and Product Integrity Initiative in Harare, a programme organised by Proma Events Africa in partnership with the Confederation of Zimbabwe Retailers.

Speaking at the launch on behalf of Industry and Commerce Deputy Minister Rajeshkumar Indukant Modi, Chief Economist Garirai Mupanan’ombe said the scale of illicit trade has become a major threat to Zimbabwe’s industrialisation agenda.

“Zimbabwe is losing close to US$1,2 billion every year through counterfeit and illicit products entering the market, depriving the Government of much-needed revenue and undermining legitimate businesses,” he said.

Mr Mupanan’ombe said protecting product integrity was central to sustaining industrial growth and restoring confidence in Zimbabwe’s marketplace.

“Industrial growth is not simply about producing more goods. It is about ensuring that every product reaching our market meets standards of quality, safety, authenticity and fairness. Without integrity, industrialisation loses its foundation,” he said.

Authorities say counterfeit and substandard products distort fair competition, weaken local industries and discourage compliant manufacturers.

The Government has since intensified efforts to curb the influx of illicit products through stronger enforcement and institutional reforms.

Mr Mupanan’ombe said a national taskforce on smuggling has been established to work with border authorities and other enforcement agencies to prevent illicit goods from entering the country.

Authorities are also strengthening the Trade Measures Department with modern monitoring tools while rolling out the Consumer Protection Commission to all provinces to ensure citizens have access to consumer protection services.

The Government continues to implement the Consignment-Based Conformity Assessment programme which requires imported goods to be inspected and certified for compliance with national standards before entering the local market.

Retailers say the circulation of counterfeit products is also threatening jobs and investment in the manufacturing sector.

Speaking on behalf of the Confederation of Zimbabwe Retailers, board member Mr Moses Chihuri said counterfeit goods have become a serious threat to the economy.

“When fake goods flood the market, legitimate factories slow down. When factories slow down, jobs are at risk,” he said.

Mr Chihuri said Zimbabwe had made significant progress in strengthening domestic production, with more than 85 percent of goods in major retail outlets now locally produced, but warned that such gains could easily be reversed if illicit trade continues unchecked.

Meanwhile, the Zimbabwe Republic Police has intensified operations targeting distributors and suppliers of counterfeit products across the country.

Police spokesperson Commissioner Paul Nyathi said several risks.

“The issue of counterfeit products is a security, health and economic threat that requires a collective approach,” he said.

Authorities said nationwide roadshows will be rolled out to promote genuine products and raise awareness on the dangers of counterfeit goods.

The campaign will culminate in a National Consumer and Product Integrity Summit that will bring together manufacturers, retailers, financial institutions and policymakers to deliberate on ways to safeguard Zimbabwe’s marketplace.