Weak intellectual property laws in the continent have precipitated a flourishing US$250 billion industry of counterfeit electrical products, according to a report by CBi-electric.
- CBi-electric is a South African manufacturer and supplier of low-voltage electrical equipment based in Johannesburg.
- According to the report, counterfeit electrical equipment has penetrated 40 – 80 per cent of African markets, tanking revenues of veritable manufacturers.
- These legitimate manufacturers lose up to US$600 billion annually, which in turn leads to job losses and tax revenues.
“The growing market for these illicit products thrives on the continent due to a confluence of weaknesses including ineffective regulations, poor border controls, and limited enforcement capacity,” Dr Andrew Dickson, Engineering Executive at CBi-electric said.
“Further fuelling the issue is the allure of their cheaper prices. Consumers in search of affordable electrical products invariably find imitations at discounted prices,” he added.
Counterfeit electric equipment can also be harmful to consumers because they are made with cheap but substandard materials. They can exacerbate electrical faults and they are easily flammable.
According to the report, the most counterfeited electrical products in the African market are cables (56%), switches (42%), and circuit breakers (40%). Most of the counterfeits hail from China (35%), other Asian countries (31%), African countries (18%), Middle East (13%), and the European Union (3%). These are mainly equipment that has been rejected in those countries of origin, which end up being dumped in Africa.
The proliferation of these counterfeits pry on the obliviousness of consumers and suppliers in examining legitimate equipment. For this reason, CBi-electric believes that public education is necessary to sensitize consumers on these issues.
“The illicit industry also has devastating knock-on effects on the legitimate electrical goods sector. Additionally, counterfeits drain vital tax revenue from governments, weakening economies and therefore having an impact on countries’ abilities to invest in their futures,” Dickson noted.
CBi-electric has specified three ways consumers can detect fake electrical equipment. These include : checking the date stamp, the manufacturer’s label, and rivets with a rounded head.
The government has been tasked to support African manufacturers by enforcing laws that protect them from intellectual theft, ensuring quality standards are upheld, and rooting out corruption which is responsible for the prevalence of crooks in the market.
Moreover, consumers have been urged to embrace legitimate electric products which in the long run save maintenance costs by lasting longer and enhance efficiency.
