By Spy Uganda
Uganda’s Anti-Counterfeit Network Limited and Kenya’s Anti-Counterfeit Authority have signed a Memorandum of Understanding on strategic collaboration to curb trade in fake goods in the East African region.
Kenya’s ACA executive director Robi Mbugua said the MoU underpins their mutual intention of developing and strengthening a robust intellectual property protection system in the region.
He said intellectual property theft and trade in counterfeits promotes an unfair environment that is rigged in favour of the counterfeiters at the expense of innovators.
“While we may experience a growing crossborder trade, what matters is not the trade index per se, but rather who benefits from the trade between our countries. Our governments and our people do not benefit, only the criminal who lacks innovativeness and who does not contribute to our national revenue collection benefits,” Mbugua said.
He was speaking at a press conference on Thursday after the signing of the MoU.
He said the signing of the agreement is in line with ACA’s legal mandate to partner with national and international institutions on matters dealing with counterfeiting.
“We look forward to being strategic partners and leading advocates on legislative and regulatory issues addressing Intellectual Property (IP) infringement not only in Kenya but in the region.”
Mbugua indicated that counterfeiting and illicit trade pose a significant threat to both consumer health and the East African community’s economy.
He said the World Economic Forum estimates that illicit trade presently deprives the global economy of $2.2 trillion (Sh295 trillion) annually, accounting for nearly three per cent of global gross domestic product (GDP).
“From the estimates, Uganda and Tanzania governments are estimated to lose $1.8 billion (Sh195.8 billion) and $1.6 billion (Sh174.1 billion) in revenue leakages on such vices due to illicit trade,” Mbugua said.
He further indicated that ACA conducted a National Baseline Survey between October 2019 and February 2020 to determine the extent of counterfeit and other forms of illicit trade in the country.
The survey covered several forms of illicit trade including counterfeiting, piracy, substandard goods, uncustomed goods, restricted goods and unexercised goods.
“The survey showed the value of counterfeit trade to be close to Sh100 billion in 2018, a figure that economists say could be more and increasing each year,” Mbugua revealed.
He said the EAC governments have made great strides towards integrating their economies by establishing a free trade area and are working on establishing a common market as well as a customs union but these efforts are being hindered by illicit trade.
Mbugua said the increasing forms of illicit trade are hindering EAC’s economic development by negatively impacting the growth of fair cross-border trade and regional industrialisation.
He, however, said regional efforts are being made to assist EAC member states implement trade-related Intellectual Property rights agreement which is currently a challenge since IP rights issues are not harmonized.
“I’m happy to inform you that the East Africa Community and Counterfeiting Bill is being drafted. These were discussions we also had with our Tanzanian counterparts last week. We look forward to being strategic partners and leading advocates on legislative and regulatory issues addressing Intellectual Property infringement not just in Kenya but in the region.”
On his part, ACN Africa Director Strategy, Kawesa Richard welcomed the initiative between the two institutions saying, “Combating counterfeits in the region requires collaborative leadership and action.”
Kawesa noted that collaborative leadership would mean that individual ambitions of every mandate-holder or stakeholder in the IP value chain recognises common risks, limitations and implications and seeks to work together to mitigate collective threats, increase opportunities and share best practices.
ACN Africa Director of Legal Muwema said, “ACA and ACN Africa deeply appreciate the magnitude of the counterfeit challenge at hand and have therefore agreed to cooperate in the areas of research, legal action, technology and communication for mindset change.”
The Anti-Counterfeit Authority was established under the Anti-Counterfeit Act 2008 as a State Corporation whose mandate is to enlighten and inform the public on matters relating to counterfeiting.
It’s also tasked with combating counterfeit trade and other dealings in counterfeit goods, devise and promote training programmes to combat counterfeiting and co-ordinate with national, regional or international organisations involved in combating counterfeiting.
ACN Africa works to bridge intervention gaps between those who affect or are being affected by counterfeits, substandard goods or services, illicit trade and parallel trading.
The organisation achieves this by championing provision of robust interventions to mitigate the prevalence of counterfeit practices in Africa through Research, Legal Action, Technology and Communication for Mindset Change.
