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Counterfeit PLC: Knock-off products flood Zimbabwe
Written by Fortune Galangwe   
Monday, 11 January 2010 15:55

HARARE (Zimbabwe Investor) - As the Zimbabwe’s economy is improving, many retailers and marketers have over spilled their shops’ shelves with different kinds of commodities. There has been growth in the manufacturing industry from around 10 percent early last year to around 30 percent last month. The country’s retail sector has become so attractive that it has caught the attention of international retail giants such as Shoprite and Pick ‘n’ Pay of South Africa.

 

The streets of Harare are astir with urgent life as hordes of people rush to purchase and fill their trolleys after a decade of vacillation and misery.

 

Hollywood Movie-style transformation

 

Since the inception of the multi-currency in Zimbabwe this year a big chunk of the country’s retail markets were transformed from black market structures, where basic commodities and consumer durables were beyond the reach of many into market force driven structures where the prices of commodities are more than affordable.

 

Most ghost building structures in Harare were resurrected and rejuvenated into clothing, grocer and consumer durable shops as the populace scramble to earn the scarce greenbacks in the country. However, the shops have also been flooded with cheap counterfeit commodities, also known as knock-offs, which are mostly not durable and come with no warrant.

 

Foreign entrepreneur influx 

 

For the past decade the country has witnessed the influx of foreign entrepreneurs dominated by the Chinese and Nigerians who have seized the “business opportunities” in Zimbabwe as a result of the political and economic turmoil. This influx has also come with it a number of unscrupulous dealers now taking advantage of the relaxation of import duty on information communication technologies accessories and basic commodities by the government.

 

Their shops are full of substandard and cheaper commodities ranging from basic commodities to consumer durables. The unscrupulous dealers are simply gluing original brand name to their counterfeit products to match the genuine brand name requested by the customer.

 

“If one wants to purchase a good brand DVD or television set, the dealer just glues a sticker on the fake product so that it matches the genuine gadget requested by the customer”, complained Ellen Kambasha, a worker at one of the shops in Harare.

 

The local companies have failed to reach the 60% capacity utilization target predicted by finance minister Tendai Biti at the end of 2009, a situation that has resulted in the supply of limited stocks of locally produced goods on the market.

 

Nonetheless; the little locally produced commodities are being drowned in a sea imported ones. Most locally produced goods are expensive as compared to imported ones. Under normal circumstances consumers are selective but in a low income environment such as Zimbabwe which is also coming from a period of massive shortages, they will grab cheaper substandard commodity without much scrutiny.

 

The porous and leaking ports of entry 

 

The country’s ports of entry have become the major vehicle in the smuggling of counterfeit goods. Corruption is rampart at the border posts where fake commodities are concealed in genuine packages and find their way into the country.

 

During his 2010 National Budget, the Minister of Finance Tendai Biti has revealed that smugglers and corrupt border officials could face up a minimum of two years without an option of a fine. This may go a long way to curb corruption and smuggling of counterfeit goods at the country’s borders.

 

Another major problem why fake products are easily smuggled into the country is that the ports of entry are heavily disabled by antiqued machinery. The machinery can not detect fake products usually concealed in genuine containers. The computer system used at the border posts needs upgrading, updating or replacing in order to prevent the local market from ‘intoxication’.

 

Where are CCZ and SAZ in the equation? 

 

As the substandard knock-offs keep finding their way into the country questions are beginning to be raised about the Consumer Council of Zimbabwe (CCZ) and the Standards Association of Zimbabwe (SAZ).

 

CCZ main task is to protect consumers against goods and services providers’ bad practices such as unjustifiable high pricing and selling of substandard goods. Consumers are currently being bombarded by marketers with counterfeit products and substandard goods as the watchdog looks on. Should CCZ be coming up with strategies and recommendations to eradicate the poisoning of the local industry is choked completely.

 

On the other hand the SAZ main task is to monitor and establish acceptable standards of products for clients. The nation had a major issue when tonnes of fake maize seed varieties were flooding the market. This issue should have been treated with the seriousness it deserved given that agriculture is at the epicentre of economic revival and prosperity.

 

To be fair to the organization though, they do not have the powers to monitor and enforce adherence to standards of imported goods. All they can do is set what the standards are. The organization therefore needs to be legally empowered to check standards of imported commodities. If they encounter counterfeits, they should be empowered to seize the goods for destruction and or recommend prosecution.

 

The onus and indeed the ultimate power however lay with the consumer who should insist on quality and fair value for money. They should shun the pick and drop behaviour when confronted by cheaper goods. The watchdogs such as CCZ and SAZ and authorities such as ZIMRA should communicate and seek strategies to alleviate the debilitative ailment that has affected the local market.

 

SAZ and CCZ signed a Memorandum of Understanding in June 2009 to educate consumers on acting responsibly when purchasing goods and services. But if there is a delay in fully implementing the programme, Zimbabwe will fast descent into the Knock Off capital of sub-Saharan Africa.

 

Comments 

 
#1 bhinya 2010-01-12 05:50 The gvt should set up a commision to monitor the retail industry in Zim.All fake shops should be prosecuted Quote
 

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