EAC prone to counterfeits, says expert

East African Community member states should priorities the fight against counterfeits if they are to succeed.

According to Omar Issa, the chief executive officer of the Investment Climate Facility, a common legislation would also boost the war.

“We need tackle the problem of counterfeits at a regional level and each member state should make this a priority. This we can only achieve through a common legislation,” said Mr Issa.

The problem of counterfeit has been underscored as a major setback to the growth of indigenous manufactures in the region. This has also driven out investors as they loose out on business opportunities.

With a combined consumer population of over 120 million people, the majority of whom are poor, the East African Community is a major market for counterfeit and pirated products.

In Kenya for example, 30 per cent of pharmaceutical products on sale studies have shown to be counterfeits.

Similarly, Eveready East Africa, a local dry cell manufacturing firm has seen 70 per cent of its market share taken up by counterfeit products.

China, United Arab Emirates, India and the countries of the Far East have been cited as the leading sources of counterfeit and pirated products entering East Africa.

Giving a presentation at the ongoing EAC Investment Forum in Nairobi, Mr Issa explained that counterfeits are currently hampering the growth of Small and Medium Enterprises.

“The entrepreneurs needs to be protected from these mutated goods that threaten their growth and that of the region,” he added.

Globally, the counterfeit market is estimated at over $600 billion annually and keeps on growing.

In the EAC, this is estimated at $500 million every year in lost revenues and taxes to the governments.

Currently no EAC partner state has an operational law against counterfeits.

There is also no specific institution in the region, except for the Fair Competition Commission in Tanzania that has the specific legal mandate to deal with counterfeits.

However, there is a draft policy in place that is aimed at providing a common legislation for the region in the fight.

This is to be passed on to each member state for discussion and a possible adoption.

“We appeal to all policy makers in the region to support this draft policy so that we can find a common ground in dealing with counterfeits in the region,” added Mr Issa.

Counterfeit products are common in a variety including dry cells, alcoholic beverages and fruit juices, and shoe polish, toothpastes/toothbrushes.

Soaps, detergents, ballpoint pens, books, electrical and electronic items, perfumes, clothing and footwear are also imitated.

A growing trend has also been witnessed on cosmetics, pharmaceuticals, automotive spare parts, computer software and hardware, audio and videotapes and CDs.