A new report by CBi-electric, says Africa’s weak intellectual property laws have led to a $250 billion growth in the counterfeit electronics industry.
CBi-Electric is a South African small electrical equipment manufacturer and supplier based in Johannesburg.
According to the report, counterfeit electronics penetrate between 40% and 80% of the African market, costing manufacturers profits.
These firms lose an estimated $600 billion a year, resulting in lost business and tax revenue.
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“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.
Counterfeit electronic products can also harm consumers because they are made of cheap but low-quality materials. They can cause more electrical problems and burn easily. A report shows that the most counterfeit electrical products in the African market are cables (56%), switches (42%) and circuit breakers (40%). Most of the counterfeit products come from China (35%), other Asian countries (31%), African countries (18%), the Middle East (13%) and the European Union (3%). These are often products that are rejected in their countries of origin and end up in Africa.
The proliferation of these counterfeit products is due to the carelessness of consumers and sellers when checking for legitimate products. Therefore, CBi-electric believes that public education is necessary to make consumers aware of 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 offers three ways for customers to spot fake electronics. These include: Check the date sheet, manufacturer label and head rivets.
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The government has worked to support African manufacturers by enacting laws that protect them from intellectual property theft, ensuring good standards are upheld and eliminating corruption that allows fraudsters to thrive in the market.
Customers are also encouraged to use legitimate electronics, which can extend their lifespan and improve efficiency in the long run, thus saving on maintenance costs.
