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‘Strengthening local industry key to curbing counterfeits’

The Government has said Zimbabwe can effectively counter the growing threat of counterfeit goods by investing in and strengthening local industries.

Speaking at the Zimpapers Public Lecture on Counterfeit Products yesterday, permanent secretary in the Ministry of Industry and Commerce, Dr Thomas Utete Ushe, said counterfeit goods posed a serious threat to economic growth, consumer safety and industrial development.

He said that the global counterfeit market was valued at an estimated US$467 billion, underscoring the scale of the problem and its far-reaching implications.

Zimbabwe is facing a significant, multi-faceted crisis due to the proliferation of counterfeit and smuggled goods, which is damaging the local economy, threatening public health and eroding consumer trust

The country loses approximately US$1,2 billion annually to counterfeit trade, which deprives the state of vital customs duties, Value Added Tax and corporate taxes. “Counterfeit products undermine legitimate businesses, create unfair competition and expose consumers to serious health and safety risks.

“For Zimbabwe, this weakens compliant companies and slows down industrial growth, making it critical for us to boost domestic production capacity,” he said.

The public lecture, organised by Zimpapers in partnership with the Harare Institute of Technology (HIT), attracted strong support from Zimbabwe’s manufacturing sector.

Industry players rallied around a shared objective of protecting the integrity of local manufacturing while safeguarding consumers from substandard and dangerous products.
Dr Utete Ushe commended HIT for developing innovative technologies, including the Electronic Revenue Receipting Platform (ERRP), which is already being deployed by several local authorities to improve transparency and traceability.

“The Ministry of Industry and Commerce’s direction is to provide a platform that mobilises local investment so that we start producing original, safe and competitive products,” he said.

“We should use all the money that we are holding under our pillows to build our industries instead of relying on others. That is how we reduce our exposure to counterfeit goods.”
Several businesses highlighted Mbare as a major hotspot for the manufacturing and packaging of counterfeit products, calling for coordinated action to dismantle illegal operations.

Leading producers, including National Foods, Dairibord Zimbabwe and Varichem Pharmaceuticals, who sponsored the event, urged authorities to urgently address the proliferation of fake goods that are eroding brand value and consumer trust.

Other event sponsors included Eversharp, Seed Co, MedTech Holdings, Afdis, Ganzim and Huletts Zimbabwe, the Consumer Protection Commission of Zimbabwe (CPC) and Bureau Veritas.

National Foods said that counterfeit versions of its popular Parlenta mealie-meal brand were circulating on the market, urging consumers to purchase products only from registered and reputable outlets.

Dairibord Zimbabwe also said that some of its dairy products were being counterfeited locally, while others were being smuggled into the country.

Varichem raised alarm over the widespread circulation of counterfeit pharmaceutical products, noting that such products pose severe health risks and could have fatal consequences.
CPC director of research and public Affairs, Mr Kudakwashe Mudereri, said the electronics sector was the most affected by counterfeit products.

He stressed that combating counterfeits requires close collaboration between regulators and industry players.

“As the Commission, we are not only about protecting consumers. We also play a critical role between consumers and businesses to ensure that both are protected,” he said.

He added that CPC has been working with the industry to identify counterfeit products and conduct raids.

However, he noted that the electronics sector remained particularly vulnerable. “There are too many counterfeit goods in that sector. Some traders import refurbished phones from Dubai and China and sell them locally as brand-new products,” he said.

Buy Zimbabwe chief executive officer Mr Alois Burutsa, said the continued circulation of counterfeit goods is crippling local industry, eroding consumer confidence and undermining national economic recovery efforts. – The Herald

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