Counterfeit goods stifling industries in the country

The proliferation of illicit and counterfeit goods on the Ghanaian market has once again come up for discussion as a major obstacle to trade development in the country, and the major cause of the collapse of many industries in the country.

To this effect, the Ghana Employers Association (GEA), as part of its 50th Anniversary celebrations, has engaged stakeholders in a dialogue on the topic “Consumer protection against illicit trade & counterfeit goods,” to re-echo some views that Ghanaian industrialists and enterprises have had cause to espouse previously.

The President of the GEA, Nana Fredua Agyeman Opambuo I, noted that the choice for the theme was informed by the ever-growing negative and devastating impact of the phenomenon on businesses and industry, the economy, as well as the image and reputation of the country.

Alas, intellectual protection in Ghana, and many other African countries, are weak and constitute a major deterrent to foreign and domestic investment - two factors indispensable to sustainable economic growth and development, Nana Fredua Agyeman noted.

He recounted the dynamic and growing industry in Nigeria that is incessantly constrained by rampant piracy. “Counterfeit operators have created a global industry that now rivals the multinational corporation in speed, reach and sophistication.

“The combination of seed capital to finance their operations, expertise in re-engineering, and ability to penetratrate legitimate distribution channels, has created a global crisis. “Anything that is manufactured can be faked — from consumer electronics through cigarettes and auto parts to shoes, bouillon cubes, antibiotics without active ingredients, to $100 bills. Counterfeiting has become as profitable as trading drugs and illegal narcotics, and is a lot less risky,” he said.

He added that in some parts of the world, organised crime is said to have shifted from the smuggling of narcotics and weapons, to counterfeiting of medicines as a lucrative enterprise.

As counterfeiters do not have to cover research and development, marketing and advertising costs, most of their expense goes into making products look convincing, not into making them perform well

He made reference to a report from the International Policy Network (IPN), which states that 700,000 people die annually from consuming fake drugs, most of which originate from China and India.

IPN, in that report, estimated that almost one per cent of drugs sold in Ghana, Nigeria, Angola, Burundi and the Congo are fake and sub-standard, leaving people to unknowingly consume paint, sawdust, cement, talcum powder and other toxic substances.

IPN also estimates that only one per cent of counterfeit drugs are found in the developed countries, where there is high literacy rate, and resolve by governments to protect trademarks and intellectual property.

Mrs. Betty Mould Idrissu, Attorney General and Minister for Justice, in her address, pledged the government's commitment at strengthening institutions to fight the menace of trade in illicit and counterfeit goods in the country. She thus enjoined industries to collaborate with other stakeholders to form a more formidable force in the fight against counterfeiting in the country.