Counterfeit crisis a big threat to economy

counterfeit goods

Collective action is needed to effectively combat the proliferation of counterfeit goods as they undermine economic growth, a senior government official has said.

In a speech read on his behalf at the Buy CCZ Verified Breakfast workshop in Harare recently, permanent secretary in the Industry and Commerce ministry, Thomas Utete Wushe said customers are attracted to fake products because they are cheap, warning that they, however, endanger consumers, distort market dynamics, negatively impact on jobs and family livelihoods.

“Counterfeits have deliberately targeted brand-conscious consumers who rely on trusted names and unfortunately, many buyers. Counterfeiters have been rampant in all sectors, including basic foodstuffs, beverages, pharmaceuticals and medicines, clothing, agricultural implements. This does not only harm businesses and deprive the fiscus of the revenue due to it, but also endangers consumers, distorts market dynamics, negatively impacts on jobs and family livelihoods and undermines economic growth,” Wushe said.

He added that counterfeiters caused significant obstacles to legitimate businesses as they discourage innovation, infringe on trade marks, thereby damaging the reputation of known brands, invariably leading to revenue losses to both government and businesses.

On the other hand, counterfeit pharmaceuticals, consumer goods and agricultural inputs pose serious dangers, leading to health complications and increased healthcare costs for both the government and individuals.

Consumer Council of Zimbabwe chief executive officer, Rose Mpofu noted that the counterfeiting challenge is not unique to Zimbabwe. She said this was a global crisis.

“Counterfeiting is a global crisis, with illicit trade valued between US$1,7 trillion and US$4,5 trillion annually. The consequences are far-reaching — governments lose critical tax revenue, legitimate businesses suffer financial losses, and consumers are exposed to health and safety risks.

“Counterfeit products pose a serious threat to consumers, businesses, and the economy at large. Many consumers unknowingly purchase counterfeit goods, unable to differentiate them from genuine products. This not only compromises their safety and rights but also undermines local industries. If left unchecked, counterfeiting will continue to erode investor confidence, hinder industrialisation, and stall our nation’s progress towards Vision 2030,” said the CCZ boss.

Mpofu added that CCZ had introduced the Buy CCZ Verified platform, describing it as a “game-changing tool that empowers consumers and businesses alike”.

She said the platform can assist consumers to verify the authenticity of products and locate genuine goods within their vicinity while businesses gain insights into counterfeit hotspots and engage directly with customers seeking authentic products.

“Government agencies, businesses, and consumers must work together to safeguard our economy, build investor confidence, and ensure the success of our industrialisation agenda.

“Eradicating counterfeit goods must be a national priority. Our commitment to this cause is not just about protecting revenue — it is about securing the future of Zimbabwean industries, upholding consumer rights, and driving sustainable economic growth,” she said. 

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