Counterfeit goods crippling industry competitiveness, businesses warn
Zimbabwean industry leaders have voiced serious concerns that the proliferation of counterfeit and smuggled goods is severely undermining local industry competitiveness, eroding market share, and damaging brand reputations.
These concerns come as the Government intensifies its crackdown on illicit trade, recently seizing over US$2,4 million worth of smuggled products.
This initiative is part of a broader strategy to combat smuggling and the trade in counterfeit goods, which pose significant threats to public health and the national economy.
Speaking at the National Economic Forum (NECF) dialogue on the consequences of counterfeit products, Confederation of Zimbabwe Industries (CZI) president Mr. Mucha Mkanganwi, represented by chief economist Dr. Conelius Dube, highlighted the significant loss of revenue for both local industries and the Government.
“The loss of Government revenue is clear, as counterfeit products are primarily sold in the informal market, bypassing formal channels where taxes are collected,” Dr Dube stated.
“More importantly, from an industry perspective, local businesses are being severely undermined, with counterfeit goods capturing a substantial market share.”
Dr Dube further noted the emergence of a thriving imitative industry that is damaging the brand reputation of numerous companies.
He identified clothing and accessories, electronics, cosmetics (particularly affected), and food and beverages as the most vulnerable sectors.
“Formal businesses, especially in the retail sector, are already feeling the impact of counterfeit goods.
Manufacturers’ brands are now being associated with the negative effects of these imitations,” he explained.
He emphasised that Zimbabwean consumers often prioritise affordability, discovering quality issues only after purchase. This trend significantly impacts formal retail shops, as consumers opt for cheaper counterfeit products.
In response, the CZI has established an anti-smuggling committee to combat both smuggled and locally manufactured counterfeit goods.
“This committee collaborates with Government agencies involved in protecting the local market,” Dr Dube said.
“We are also seeking financial support from our members to assist Government efforts, recognising their resource constraints.”
Confederation of Zimbabwe Retailers (CZR) president Mr Denford Mutashu, represented by Mr Innocent Marimo, estimated that approximately 50 percent of products in the informal market are counterfeit and often smuggled.
However, the CZR is actively working to register and formalise informal traders, aiming to reduce the sale of counterfeit goods.
Zimbabwe National Chamber of Commerce (ZNCC) chief executive Mr Christopher Mugaga, in a recent interview, warned that counterfeits are accelerating deindustrialisation by offering cheaper alternatives to locally manufactured goods.
“Substandard products kill local industry,” Mr Mugaga said.
“They also pose health risks, as many are carcinogenic.
“Furthermore, they negatively impact employment as companies reduce productivity due to lost market share.”
The Government has intensified its efforts to combat smuggling and counterfeit trade and has outlined plans to strengthen national quality infrastructure by prioritising the implementation of compulsory standards as part of the national quality policy.-ebsinessweekl
