Dar es Salaam. The decline of local production, reduced investment, and shrinking government revenue are among the adverse effects caused by the influx of counterfeit goods into the country.
According to business and economic stakeholders, counterfeit products pose a significant threat not only to the national economy but also to the health and safety of individual citizens.
A 2023 report by the Tanzania Medicines and Medical Devices Authority (TMDA) in the Western Zone revealed the seizure of counterfeit human medicines valued at US$20,000 in the regions of Katavi, Tabora, and Kigoma.
The Zone Manager, Kiboko Magigi, went further to highlight that counterfeit medicines account for approximately 30 per cent of all medicines available on the market.
In addition to TMDA, the Fair Competition Commission (FCC) reported in its 2022/2023 financial year report that counterfeit goods worth around Sh15 billion were confiscated.
Furthermore, the FCC report, presented during last year’s World Anti-Counterfeit Week celebrations, disclosed that between 2.5 per cent and 3.5 per cent of products sold in local markets are counterfeit.
Given the economic dangers posed by such products, Section 20 of the Fair Competition and Anti-Fraud Act of 2003 prohibits the misrepresentation of the nature or qualities of goods. Under this law, selling counterfeit goods is a criminal offence.
A similar provision is outlined in Section 31(1) of the 1986 Trade Marks Act, which forbids any person from using or imitating another’s trademark with the intent to deceive or benefit unfairly.
Additionally, Section 22(1) of the Standards Act of 2009 explicitly states that it is illegal to import, sell, or distribute goods that fail to meet official Tanzania Bureau of Standards (TBS) specifications.
READ MORE: Tanzania’s Silent Crisis: The Cost of Illicit Alcohol on Lives and Revenue
These legal prohibitions confirm the multiple dangers of counterfeit goods—not only economically but also to consumer health.
Trend of counterfeit goods
A 2023 study by the Confederation of Tanzania Industries (CTI) and the Global Organised Crime Index 2023 found that more than 50 per cent of goods consumed in Tanzania are counterfeit, including medicines, food, construction materials, and electronic devices.
This situation continues to undermine government revenue, with annual tax losses estimated between 15 and 25 per cent of domestic income, equivalent to US$343 million to 566 million, due to the trade in counterfeit goods, according to the Cosmetics Business website.
In the pharmaceutical sector, TMDA estimates that about 30 per cent of medicines in the country are counterfeit (Healthcare MEA). A 2018 study published in BMC Health Services Research quantified the economic cost of counterfeit and substandard medicines and cosmetics at US$16.2 million between 2005 and 2015. Commonly found counterfeit medicines include amoxicillin, cloxacillin, co-trimoxazole, and antimalarial drugs such as quinine and artemether-lumefantrine.
In 2020, TMDA identified nine substandard medicines and four counterfeit drugs being sold on the market.
Additionally, on January 23, 2023, the Tanzania Bureau of Standards (TBS) seized and destroyed 20 tons of substandard goods, mainly expired food, worth Sh400 million (about US$171,000) in the Eastern Zone.
Between April and November 2023, TBS operations in the Dodoma and Singida regions led to the destruction of 837 tons of substandard goods (including cosmetics containing hazardous chemicals) valued at Sh21.8 million.
From September 30 to October 13, 2024, TBS inspectors in the Eastern Zone seized 20 tons of substandard and expired goods worth Sh176 million, following inspections of approximately 120 shops. Between July and December 2024, TBS destroyed substandard goods valued at Sh1.5 billion as part of its law enforcement efforts.
The FCC also reported confiscating counterfeit goods worth Sh15 billion during the 2023 financial year.
Impact on manufacturers
The Director of Policy and Advocacy at the Confederation of Tanzania Industries (CTI), Akida Mnyenyelwa, explained that counterfeit products often use the trademarks of genuine brands.
READ MORE: Cancellation of Tax Amnesty Regulations: What Went Wrong?
In such cases, he said, counterfeit goods are distributed quickly and in large quantities, sold at lower prices that undercut legitimate producers.
Akida noted that the price difference arises because genuine manufacturers must account for production costs, whereas counterfeit producers incur minimal production expenses.
“For example, if a genuine T-shirt manufacturer calculates production costs and prices it at Sh20,000, a counterfeiter might sell it for Sh10,000 or even Sh5,000,” he said.
Visually, he added, counterfeit products often resemble authentic ones and bear the original manufacturer’s logo, making it difficult for unsuspecting customers to differentiate except by opting for the cheaper alternative.
“If the T-shirt quickly falls apart, the customer will blame the original manufacturer because it carries their brand, even though it wasn’t produced by them,” he explained.
“In that scenario, the brand reputation painstakingly built through advertising is damaged by counterfeit goods. This is a major headache for us. You end up receiving quality complaints for products you didn’t make,” he said.
Another consequence, he noted, is reduced sales as customers flock to cheaper counterfeit alternatives.
“If you’re producing but not selling, while someone using your brand is selling counterfeits, you’ll incur losses. That’s why people claim our industries are struggling—it’s because of counterfeit goods.
“They sell while genuine manufacturers can’t, and since we bear production costs, eventually the factory will shut down,” he added.
READ MORE: How Fair Is Tanzania’s Tax System?
According to Akida, depending on the product, some counterfeits directly endanger consumer health because counterfeiters ignore safety and quality standards.
“For example, if someone imports counterfeit medicine into the country, anyone taking it will face health risks. The same goes for counterfeit alcohol—consumers will suffer health effects because these products aren’t tested or regulated,” he said.
Akida stressed that counterfeit products ultimately harm genuine manufacturers. “In such circumstances, companies are likely to incur losses. If a company loses money, it may reduce production or even cease operations altogether. This means the government will also lose tax revenue,” he added.
Impact on consumers
Speaking on the issue, the Director of the Tanzania Consumer Advocacy Society, Benard Kihiyo, noted that beyond harming manufacturers, counterfeit goods directly endanger consumers.
Kihiyo explained that counterfeit importers prioritise profit and often use smuggling routes, ultimately exposing consumers to unsafe, substandard products.
“You might be drawn to a product because it’s cheaper, and with the naked eye, you might not realise it’s counterfeit—but it could harm your health,” he warned.
Beyond health risks, Kihiyo pointed out that counterfeit goods affect consumers economically. “A product you expected to last a year may only last a few months, forcing you to buy another,” he said.
He added that as counterfeit goods increase, local production declines, leading the country to rely more on imports and weakening the local currency.
“Since the country will be buying but not selling, it pushes up foreign currency demand while killing the value of the local currency,” he said.
READ MORE: Street Vendors’ Struggles in Tanzania and How Media Was Used Against Them
He also noted that counterfeit goods undermine market competition, damage local brands, and threaten domestic industries.
“Importers will continue profiting while local industries collapse. We’ll end up relying on foreign markets and foreign currencies,” he emphasised.
As a result, Kihiyo said consumers are caught between authentic and counterfeit products, often choosing the cheaper option to save money—sometimes at the cost of their health or safety.
Nonetheless, Kihiyo said they work closely with relevant authorities to combat counterfeit goods whenever they encounter them on the market.
“In enforcement, we collaborate with authorities. Whenever we see suspicious products, we notify the relevant agencies,” he said.
“Sometimes counterfeiters fail to perfectly replicate genuine brands, making it possible to detect them. We’ve been reporting such cases, and action has been taken because our role is to protect the consumer,” he explained.
Economic perspective
From an economic perspective, counterfeit products stifle domestic production, deprive the government of revenue, and undermine both individual and national economic growth, according to Dr Timoth Lyanga, an Economics Lecturer at the Open University of Tanzania.
Dr Lyanga explained that the loopholes allowing counterfeit goods into the country discourage investment and drive away investors who have already invested locally.
“Investors share information,” he said. “When one leaves because counterfeit products have flooded the market, they won’t hesitate to warn others they know. Unfortunately, bad news spreads quickly. The country will gain a reputation for counterfeit goods, and genuine manufacturers will avoid it.”
READ MORE: Experts Explain How Govt Can Prevent Loss of Billions in Revenues Due to Faulty ICT Systems
If that happens, he noted, it creates a hostile environment for economic growth because the country will lack producers and instead depend on imports.
Regarding individual economic well-being, he explained that it deteriorates because domestic producers employ local people in various activities.
“The employment chain in production is long and involves many people, compared to an importer of counterfeit goods who needs very few distributors,” he said.
“As a result, a system that provides jobs to many collapses, replaced by one employing only a few,” he explained. “Those who lose their jobs lose their income, and the people who depended on them lose services. Gradually, the poverty chain spreads and affects everyone.”
However, Dr Lyanga recommended strict enforcement of electronic tax stamps and markings with non-replicable features as effective ways to curb counterfeit goods.
Another approach, he suggested, is controlling the entry points of goods and reducing bureaucratic hurdles for legitimate products, to make it easier for genuine goods to enter so that transporters don’t resort to smuggling.
“If you impose too many layers of taxes and other transport restrictions, people will look for secret ways,” he stressed. “If someone succeeds today in smuggling, tomorrow they’ll bring counterfeit goods because they’ve learned the route and know it will pass.”
According to Dr Lyanga, investing in mechanisms that enable every citizen to distinguish between genuine and fake products is another strategy that could help end the problem.
Nevertheless, he emphasised that it’s difficult to eliminate counterfeit goods entirely, though it’s possible to curb them significantly to prevent negative impacts on the economy and citizens.
Zahara Tunda is a freelance journalist based in Dar es Salaam, Tanzania. She can be reached at zahratunda@gmail.com or on X as @zahratunda.
The project received support from the Thomson Reuters Foundation through the Media Foundation for West Africa, as part of its global work aiming to strengthen free, fair and informed societies.
