THE IMPACT OF ILLICIT TRADE
Updated: May 29
Counterfeit and pirated products are being produced and consumed in virtually all economies. The OECD, by 2016, estimated that trading in fake goods was at 3.3%
of world trade, or US$ 509 billion.
Counterfeit and pirated products are being produced and consumed in virtually all economies. The OECD, by 2016, estimated that trading in fake goods was at 3.3% of world trade, or US$ 509 billion. This is based on valuation of customs seizures of fake goods around the world; the figure is therefore much higher now (as early as 2009, it was stated in the The East African Community policy on anti-counterfeiting, anti-piracy and other intellectual property rights violations, that counterfeit products result in losses to genuine companies globally of up to US$ 630 billion annually). Illicit trade therefore remains a mass challenge for brands aiming to legitimately penetrate the African markets and grow their market share and profits. Although anti-counterfeit laws and measures are gaining traction, the pandemic of corruption remains a big part of the problem. Further, counterfeits help fund criminal gangs, organized crime, and even terrorism.
Globally, the trade in counterfeit pharmaceuticals is worth up to $200bn (£150bn) annually. The World Health Organization (WHO) says 42% of all fake medicines reported to them between 2013 and 2017 were from Africa; Africa is therefore among the regions most affected.
Brand ID is playing an important role in addressing these business challenges by partnering with law enforcement/organizations/businesses and other government initiatives to protect customers