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Crackdown on Counterfeit Goods Escalates as Authorities Uncover Sophisticated Fake Alcohol and Lubricant Networks

Tanzania’s four-month crackdown seizes Sh4 billion, revealing illicit operations that cost the government over Sh1 trillion yearly and threaten public health

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Dar es Salaam – Authorities have intensified their crackdown on counterfeit goods, uncovering highly sophisticated illicit production networks operating within residential areas that manufacture fake alcohol and repackage used motor oil under premium brand names.

In a detailed press briefing on April 7, 2026, Minister of Industry and Trade Judith Kapinga announced the results of a four-month targeted operation led by the Fair Competition Commission (FCC), which resulted in the seizure of nearly 1,000 counterfeit items valued at approximately Sh4 billion. 

The seized goods, which include household electrical appliances, food products, and cosmetics, are currently pending destruction.

The enforcement drive, initiated shortly after Minister Kapinga’s appointment by President Samia Suluhu Hassan in November 2025, highlights the growing complexity of illicit trade in the region. 

A 2023 study by the Confederation of Tanzania Industries (CTI) and the Global Organised Crime Index estimated that over 50 per cent of goods consumed in the country are counterfeit. 

READ MORE: Counterfeit Goods in Tanzania: A Crisis Eating Away at the Economy, Public Health 

A more recent CTI study, conducted in collaboration with Serengeti Breweries Limited, found that illicit alcohol alone costs the government over Sh1 trillion in lost revenue annually and accounts for 61 per cent of all alcohol consumed — up from 55 per cent in 2017.

Sophisticated deception

The gravity of the situation was underscored by recent FCC raids in Dar es Salaam. In Sinza A, Kinondoni District, authorities dismantled an illegal alcohol production facility operating out of a residential house. Inspectors confiscated a stamp-printing machine, counterfeit tax stamps, ethanol, and mixing vessels.

The operation revealed a chilling level of sophistication designed to deceive consumers.

“When you find those bottles, the external packaging and the way the bottle is sealed — the bottle itself is an original bottle, and even the cap is an original cap,” Kapinga said. “So, to the eyes of an ordinary consumer, it is not easy to see that the product is fake. What is inside is what is fake — it is not a Konyagi product.”

The minister noted that the counterfeiters had even calibrated the alcohol content to mimic the genuine product’s taste, making detection nearly impossible without chemical analysis. During the operation, 4,080 bottles of counterfeit Konyagi were confiscated.

A subsequent raid on March 9, 2026, in Pugu, Ilala District, targeted another network producing fake Konyagi, Valu, and Smart Gin. Authorities seized alcohol measuring devices, bottle-capping machines, weighing scales, ethanol, and raw materials, as well as completed bottles of all three brands. 

READ MORE: Authorities in Tanzania Ramp Up Fight Against Illicit Trade 

In both instances, brand owners collaborated with the FCC to verify the falsified nature of the products — a partnership the minister described as critical to the operation’s success.

The FCC’s anti-counterfeit enforcement section is empowered under the Merchandise Marks Act, Cap 85 Revised Edition 2023, which grants the Chief Inspector of Merchandise Marks authority to seize goods suspected to be counterfeit, as well as the tools and machinery used in their production.

Fake lubricants

The counterfeit crisis extends beyond human consumption, posing severe safety risks to the transport sector. On February 11, 2026, the FCC intercepted a network in Kariakoo, Dar es Salaam, seizing over 5,000 gallons of allegedly counterfeit motor vehicle lubricants.

The operation uncovered two distinct methods of fraud, as clarified by Minister Kapinga: “There are those who do refilling — they take the original container and refill it into small bottles. And then there are those who take used oil containers that have already been used and refill them with dirty or waste oil.”

These illicit lubricants were being repackaged using labels from well-known brands, including Total Energies, Castrol, Shell, Orix Energies, and Mogas. The use of substandard or waste oil can lead to catastrophic engine failure, increased maintenance costs, and severe road safety hazards.

Despite the aggressive crackdown, the government maintains that its primary goal is to facilitate legitimate trade, with the goal being to enable business and not merely control it. However, the minister expressed disappointment at the lack of salvageable enterprises among those raided.

READ MORE: CTI Calls for Stronger Action Against Illicit Alcohol in Tanzania

“Unfortunately, we did not find any businesses of sufficient quality that we could help formalise,” she said. “All the goods we encountered, we confirmed at every step that they were counterfeit — or in street parlance, fake products.”

Reforms

To address the systemic issues driving the counterfeit market, the government is implementing several digital reforms. As of December 1, 2025, the FCC has enforced a mandatory trademark recordation system for all imported goods, requiring rights holders and importers to register their marks in advance so that border officials can verify authenticity in real time. 

The FCC has also been integrated into the Tanzania National Online Goods Authentication System (TANOGA), which embeds enforcement directly into the customs clearance process, allowing suspect consignments to be flagged and detained before they enter the market.

In addition, the minister announced a new voluntary product recordation initiative, giving importers a six-month window to register product origins, manufacturers, and agents with the FCC. The system is designed to be publicly accessible, enabling consumers and wholesalers to verify the provenance of goods before purchase.

Additionally, the Tanzania Bureau of Standards (TBS) has digitalised its certification processes, allowing businesses to register products online without face-to-face interactions until the inspection stage. The Business Registrations and Licensing Agency (BRELA) has also been directed to continuously update its systems to improve service delivery.

Threat to public health

The health implications of the counterfeit trade are severe. The Tanzania Medicines and Medical Devices Authority (TMDA) estimates that approximately 30 per cent of medicines in circulation are counterfeit, while the FCC’s own anti-counterfeit surveillance head, Salvatory Chuwa, has warned that counterfeit goods are “destroying lives, reducing investor confidence, and costing the nation billions in lost revenue.” 

READ MORE: Tanzania’s Silent Crisis: The Cost of Illicit Alcohol on Lives and Revenue 

A joint study by CTI and the Global Organised Crime Index ranked Tanzania and Kenya as the most affected by counterfeiting in the East African Community, with the countries’ strategic location and porous borders making them primary entry points for illicit goods.

“We therefore urge traders who have had bad intentions from the start not to do this, because they will go bankrupt — this operation is ongoing, and we will always ensure we take action in accordance with the law,” Kapinga said.

The minister concluded by appealing directly to consumers to remain vigilant. She advised the public to utilise the Tanzania Revenue Authority’s “Hakiki” application to scan tax stamps and to verify QR codes on product packaging.

“The first wealth of any human being is health,” the minister said. “When health falters, even the small income of the poorest person will be spent on healthcare. So before we reach that point, our duty as government is to ensure we protect the health of Tanzanians.”

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