Uganda tops in counterfeit
Jul 09, 2009
Uganda is one of the largest recipients of counterfeit products in the region, according to a survey by the East African Community (EAC).
By Henry Mukasa
Uganda is one of the largest recipients of counterfeit products in the region, according to a survey by the East African Community (EAC).
It reckons that local companies like Nice House of Plastics lose up to $2m (sh4b) annually to the trade in fake goods.
These were some of the findings by consultants from Mohammed Muingai Advocates, contracted by the East African Community Secretariat to draft an EAC policy on anti-counterfeiting and anti-piracy.
“The situation is dire. Counterfeit trade accounts for about 10% of international trade and Uganda’s market is one of the largest recipients of counterfeit products in the region,†said Crispine Odhiambo, one of the consultants, while presenting the report at Imperial Royale Hotel on Wednesday.
He pointed out, however, that some of the counterfeits are locally manufactured. “The majority of such products are sub-standard and, therefore, pose a major threat to the lives of consumers.â€
The report gives examples of the trade in fake drugs, adulterated cement (cement mixed with either sand or ash) and counterfeit electric cables, which lead to health risks, the collapse of buildings and outbreaks of fire.
The consultants listed the industries most hit by counterfeits as cosmetics, detergents, food, beverages, cooking fats, construction materials, electrical products, alcohol, juices, pharmaceuticals, computer software, music and videos.
“Many of these products are packaged in ways that consumers are unlikely to differentiate between the counterfeit and genuine products.â€
In his opening remarks, Odhiambo attributed the growing problem in developing countries to lack of laws and enforcement mechanisms, poverty, corruption and under-supply of original products. “The situation is even made worse by globalisation and liberalisation efforts by governments.â€
He also blamed consumer ignorance. “Ugandans tolerate counterfeit products. The argument given is that counterfeits are affordable. But they are expensive in the long-run,†he said, pointing at loss of revenue and closure of local businesses.
Uganda does not have a law against counterfeiting or an agency to seize counterfeits and prosecute offenders, the report points out.
“The law does not empower the Ugandan National Bureau of Standards to deal with counterfeits unless the goods happen to be substandard.â€
The counterfeit goods bill is expected to become law later this year.
Uganda’s problem is also aggravated by the “lack of adequate enforcement of existing laws, weak punitive measures, lack of a specific institution charged with addressing the problem and the lack of robust registration of trade marks in the country,†according to the report.
Uganda is one of the largest recipients of counterfeit products in the region, according to a survey by the East African Community (EAC).
It reckons that local companies like Nice House of Plastics lose up to $2m (sh4b) annually to the trade in fake goods.
These were some of the findings by consultants from Mohammed Muingai Advocates, contracted by the East African Community Secretariat to draft an EAC policy on anti-counterfeiting and anti-piracy.
“The situation is dire. Counterfeit trade accounts for about 10% of international trade and Uganda’s market is one of the largest recipients of counterfeit products in the region,†said Crispine Odhiambo, one of the consultants, while presenting the report at Imperial Royale Hotel on Wednesday.
He pointed out, however, that some of the counterfeits are locally manufactured. “The majority of such products are sub-standard and, therefore, pose a major threat to the lives of consumers.â€
The report gives examples of the trade in fake drugs, adulterated cement (cement mixed with either sand or ash) and counterfeit electric cables, which lead to health risks, the collapse of buildings and outbreaks of fire.
The consultants listed the industries most hit by counterfeits as cosmetics, detergents, food, beverages, cooking fats, construction materials, electrical products, alcohol, juices, pharmaceuticals, computer software, music and videos.
“Many of these products are packaged in ways that consumers are unlikely to differentiate between the counterfeit and genuine products.â€
In his opening remarks, Odhiambo attributed the growing problem in developing countries to lack of laws and enforcement mechanisms, poverty, corruption and under-supply of original products. “The situation is even made worse by globalisation and liberalisation efforts by governments.â€
He also blamed consumer ignorance. “Ugandans tolerate counterfeit products. The argument given is that counterfeits are affordable. But they are expensive in the long-run,†he said, pointing at loss of revenue and closure of local businesses.
Uganda does not have a law against counterfeiting or an agency to seize counterfeits and prosecute offenders, the report points out.
“The law does not empower the Ugandan National Bureau of Standards to deal with counterfeits unless the goods happen to be substandard.â€
The counterfeit goods bill is expected to become law later this year.
Uganda’s problem is also aggravated by the “lack of adequate enforcement of existing laws, weak punitive measures, lack of a specific institution charged with addressing the problem and the lack of robust registration of trade marks in the country,†according to the report.