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Counterfeits Stealing Ugx 6 Trillion from Uganda Every Year: will the Country Survive This Crisis?

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Counterfeits Stealing Ugx 6 Trillion from Uganda Every Year: will the Country Survive This Crisis?

by Mulengera
1 year ago
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Counterfeits Stealing Ugx 6 Trillion from Uganda Every Year: will the Country Survive This Crisis?
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By Aggrey Baba

Uganda’s economy is bleeding billions, with an estimated Sh6 trillion lost annually to counterfeit goods.

As the country faces a reduction in donor funding, this self-inflicted fiscal bleeding continues to drain resources that could otherwise boost public services. From healthcare to agriculture, counterfeit goods undermine the country’s development and economic stability.

Like a leaky bucket, Uganda is losing vital revenue as counterfeit products flood the market. The Uganda Bureau of Standards (UNBS) estimates that fake goods, ranging from pharmaceuticals to agrochemicals, make up 540% of the market.

These illicit products not only erode tax revenues but also cripple local industries and increase the burden on an already fragile healthcare system.

Counterfeit pesticides, substandard veterinary drugs, and fake medicines are wreaking havoc on agriculture and public health, while businesses suffer unfair competition as counterfeiters undercut prices by bypassing safety and quality standards.

Despite its efforts, UNBS struggles to fight this growing menace due to underfunding, operating with just 28% of its required budget, limiting their ability to carry out inspections and enforce regulations, allowing unsafe goods to flood the market.

To stem this tide, Uganda must adopt a multi-faceted strategy. First, the government should significantly increase UNBS funding, ensuring better surveillance and inspections. A technology-driven approach can empower consumers to report counterfeit products, building a collaborative effort between regulators, brands, and the public.

Stricter enforcement of the Anti-Counterfeit Act, with harsher penalties for offenders, could deter illegal trade. And lastly, public awareness campaigns are crucial.

Highlighting the dangers of counterfeit products, from poisonous cosmetics to lethal drugs, will help shift consumer behavior and encourage the reporting of suspicious goods.

If the counterfeit crisis continues to grow at the current rate of 1,100% per decade, Uganda’s economic and public health futures will hang in the balance.

Redirecting the Sh6 trillion lost to counterfeit goods into national development could counter the decline in donor funding and breathe new life into sectors like manufacturing and agriculture.

[A single bracelet does not jingle], and only through concerted effort and unity can Uganda protect its future from the destructive impact of counterfeit trade. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).

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