Source: Govt considers tough new law against counterfeit products – herald
Oliver Kazunga
THE Government is considering enacting a new law to protect local industry and consumers from a growing flood of fake and substandard imports.
The envisaged law is expected to become a key pillar in the country’s industrialisation and consumer protection drive.
Industry and Commerce Minister Mangaliso Ndlovu said growing public concern over counterfeit goods had strengthened calls for a legal framework to decisively deal with the scourge.
“The ministry has also noted with concern the proliferation of counterfeit products, which threatens the national economy by reducing competitiveness, compromising revenue inflows to the fiscus and exposing consumers to health risks,” he said.
“In fact, let me point out that, from reports gathered during consumer protection forums, as well as education and awareness programmes conducted across the country, there has been a strong and consistent advocacy from the public for the enactment of a dedicated counterfeit Act.
This growing call underscores the urgency of strengthening our legislative and enforcement framework.”
The proposed legislation comes at a time Zimbabwe is deepening its participation in regional and continental trade integration under the African Continental Free Trade Area (AfCFTA), which seeks to create a single continental market valued at an estimated US$2,3 trillion.
The AfCFTA — which is the world’s largest free trade area, with a population of about 1,2 billion — was operationalised in January 2021.
Zimbabwe is one of 54 signatories to the AfCFTA agreement seeking to eliminate tariffs on 90 percent of goods traded between member states over 10 years.
The Government has already intensified enforcement measures through the Consumer Protection Commission (CPC) and the Task Force on Business Malpractices.
“To date, more than 5 087 businesses have been inspected, with over 560 prosecutions finalised, 589 compliance notices issued and 6 189 seizures effected,” added Minister Ndlovu.
“Let me emphasise that these figures represent only part of the progress achieved, as much more has been accomplished by the CPC, whose statistics are yet to be fully embedded into this record.
“These outcomes clearly demonstrate the impact of enhanced institutional capacity and underscore the importance of continued resource support to sustain nationwide enforcement.”
Minister Ndlovu said the recently approved Consumer Protection Policy complements the Consumer Protection Act and forms part of broader efforts to strengthen inclusive economic growth under the National Development Strategy 2 (NDS2).
Growing threat
Buy Zimbabwe general manager Mr Munyaradzi Hwengwere said counterfeit products had become one of the biggest threats to Zimbabwe’s industrial transformation agenda.
He said recent research conducted by Buy Zimbabwe showed that more than 40 percent of respondents across the country had knowingly bought counterfeit products, highlighting the need for stronger public awareness and deterrent penalties.
He warned that counterfeit trade had evolved into a sophisticated global underground industry linked to illicit financial flows and organised criminal networks.
“The promulgation of the counterfeit Act is urgent and needs to be done.
“If you look at the EU (European Union), the more they have opened up, the more they have become stringent on standards and border control; the more they have also sought to protect their own industry, so we have to take a holistic approach because there must be an intention of doing these things,” he said.
“We cannot be driven to open up borders for the sake of opening up borders or for the sake of the AfCFTA, and we have a vision as a country, and the Government has said the vision is to have an upper middle-income society by 2030. So, when we are getting into the AfCFTA, we are saying we are doing so to take advantage of the US$2,3 trillion market, not to become poorer because of it.”
Stricter rules of origin, local content verification systems and tighter border controls, Mr Hwengwere added, would be critical if Zimbabwe is to maximise benefits from continental trade integration while safeguarding the domestic industry.
Chairperson of the Parliamentary Portfolio Committee on Industry and Commerce Mr Clemence Chiduwa said the proposed counterfeit Act was long overdue given the growing sophistication of counterfeit operations.
“The counterfeit Act should contain sections that deal with intellectual property infringement, where we have got people and organisations producing brands that do not belong to them that are registered trademarks and copyrighted without the owner’s authorisation,” he said.
He also called for stronger regional cooperation under AfCFTA to ensure member states do not become sources or transit routes for counterfeit goods.
“In light of the AfCFTA, it is imperative to have all countries that are under it to have quality standards and we also think that, as part of the counterfeit Act, there should be a provision where countries should not allow themselves to be a source of counterfeit products.”
The post Govt considers tough new law against counterfeit products appeared first on Zimbabwe Situation.