The Problem in Africa
How is this relevant to Africa?
A number of factors contribute to the growth of counterfeit goods in Africa:-
- high duty levels
- established smuggling routes
- poor revenue collection systems
- extensive corruption
- weak intellectual property protection (IPP) legal framework
- low penalties
- underdeveloped business communities
- increasing Chinese business involvement in Africa
- low literacy amongst ordinary consumers
Counterfeiting and piracy also have a significant negative impact on economic development, hindering:-
· innovation and growth
· government revenue generation
· foreign direct investment
· the viability of local manufacturing.
Counterfeiting acts as a significant obstacle to the growth of genuine businesses in Africa. Hence Anti-Counterfeiting is a specialist area for AML.