Intellectual property need international collaboration, enforcement to safeguard innovation and brands-PAMA

The Pan- Africa Manufacturers Association (PAMA) October 2025 News Bulletin has highlighted that the rising importance of intellectual property (IP) embedded in global production underscores the need for international collaboration and enforcement to safeguard innovation and brands across jurisdictions.

According to the Organisation for Economic Co-operation and Development (OECD October, 2025 publication), Globalisation, trade facilitation, and industrial specialisation have significantly reshaped supply chains, extending them across multiple countries and continents. While this evolution has enhanced efficiency, economic growth, and consumer choice, it has also increased the complexity of managing and securing supply chains.

It stated that the intricate nature of global supply chains, however, creates vulnerabilities that contribute to intellectual property infringement.

“Counterfeit goods that infiltrate supply chain networks undermine legitimate businesses, deprive governments of revenue, and pose public health and safety risks. Illicit trade in counterfeit goods is also linked to organised crime and corruption, exploiting gaps in regulations and enforcement. These challenges are amplified by the increasing complexity and global nature of supply chains,” PAMA stated.

It noted that studies have shown that the People’s Republic of China (hereafter “China”) continues to be the primary source of counterfeit goods, although other regions contribute significantly.

“Indeed, the General Trade-Related Index of Counterfeiting (GTRIC) index, which estimates the likelihood of specific countries being major sources of counterfeit exports, indicates that during 2020-21 the sources of counterfeit clothing products were numerous and spread across the world; Bangladesh, Lebanon, Syrian Arab Republic, and Türkiye were considered to be key sources of such illicit goods.

“In 2021, global trade in counterfeit goods was valued at approximately USD 467 billion, or 2.3% of total global imports. This absolute value represents an increase from 2019, when counterfeit trade was estimated at USD 464 billion, although its relative share decreased compared to 2019 when it accounted for 2.5% of world trade. For imports into the European Union, the value of counterfeit goods was estimated at USD 117 billion, or 4.7% of total EU imports,” it added.

According to Organisation for Economic Co-operation and Development, counterfeiting affects nearly 50 of the 96 product categories, with high-value goods such as clothing, footwear, leather goods, and electronics the top targets.

It emphasized that trade routes continue to evolve as counterfeiters use international waterways such as the Danube River to move goods and adopt “localisation” strategies to produce fakes closer to end markets.

It explained that free trade zones, which benefit from reduced oversight, play a pivotal role in this trend, stressing that localisation tactics, such as importing unassembled components or separate packaging with a view to producing or assembling counterfeit goods close to or within the destination market, complicate enforcement efforts and require new strategies for detection.

It disclosed that counterfeiters also exploit online platforms and modern logistics to infiltrate legitimate trade, with postal services emerging as the primary channel for distribution.

“Small parcels, often classified as de minimis trade, evade scrutiny and create challenges for enforcement agencies. Indeed, the size of seized shipments has generally decreased; in 2020-21, shipments containing fewer than ten items accounted for 79% of all seizures, up from 61% in 2017-19,” it stated.

The European Union is reportedly said to be a key target for counterfeit imports, with China and Hong Kong (China) accounting for the highest value of seized counterfeit goods.

Additionally, “counterfeit goods range from everyday consumer items to luxury products, with a worrying increase in the trade of dangerous goods such as counterfeit automotive parts and pharmaceuticals. Despite a decrease in counterfeit trade values post-COVID-19, EU exposure remains significant as counterfeiters have adapted by relocating production closer to destination markets.”

On the real cost of counterfeits, Organisation for Economic Co-operation and Development, highlighted that with the holiday season around the corner, bargain hunters will soon start searching for perfect gifts at unbeatable prices, noting that viral blind-box collectable toy, designer tote bag, or luxury watch you spotted online for a fraction of the retail price might seem like a great deal, but what if it’s fake?

It acknowledged that the damage from counterfeit products extends far beyond a poorly made handbag, from toxic makeup to life-threatening medicines, counterfeiters have infiltrated nearly every aspect of daily life.

It stressed that illicit trade poses serious risks to public health and safety, while the sheer scope of counterfeit goods demonstrates the scale of this global crisis.

It posited that while Africa is not a major source of counterfeit exports globally, the continent is far from insulated from the consequences of counterfeiting and weak intellectual property enforcement.

The news bulletin stated that Africa is increasingly a target market and a transit hub for counterfeit goods from pharmaceuticals and electronics to agricultural inputs and auto parts, many of which originate outside the continent.

According to data released in 2023 by the United Nations Office on Drugs and Crime (UNODC), counterfeit and substandard medicines are responsible for approximately 500,000 deaths annually in sub-Saharan Africa each year, adding that this dramatic figure represents only the tip of the iceberg of a crisis that threatens to claim more lives if urgent measures are not taken.

“The continent’s fragmented regulatory systems, weak border controls, and limited technical capacity make it vulnerable to illicit trade networks,” it stated.

According to data released by the Anti-Counterfeit Authority (ACA), Kenya alone loses a staggering KSh800 billion annually an amount equivalent to nearly 9% of its Gross Domestic Product (GDP) due to the proliferation of counterfeit goods.

This is not peculiar to Kenya alone, it stated, but to all other African countries, undermining industrial growth, public revenue, and consumer safety.

According to the Global Organised Crime Index, Nigeria and Ethiopia each record high scores (8.0) on the trade in counterfeit goods metric, placing them among the most exposed globally.

It pointed out that African innovators, designers, and small manufacturers face additional risks, as their products are often replicated and sold cheaply without legal protection, stressing that the lack of effective IP frameworks discourages innovation, investment, and the development of local brands.

The evolving trends in counterfeiting in the continent underscore the urgent need for stronger enforcement mechanisms and enhanced international and regional cooperation, because counterfeiters are increasingly exploiting weaknesses in regulatory systems, limited enforcement capacity, and fragmented oversight across jurisdictions.

To address these gaps, according to the Pan-African Manufacturers Association, African leaders must collectively do the following:

“African governments must strengthen institutional coordination and enforcement capacity creation and empowerment of specialised Intellectual Property (IP) enforcement units within customs, police, and trade ministries. These units should be adequately resourced and trained to detect, investigate, and prosecute IP crimes effectively.

“African leaders must promote cross-border information sharing and joint operations through regional data-sharing platforms supported by the AfCFTA Secretariat and African Union Commission (AUC) to facilitate intelligence exchange on counterfeit trade routes, seizure data, and known syndicates.

“Rights holders and manufacturers remain the first line of defense against counterfeiting. PAMA encourages structured partnerships between enforcement authorities and private sector actors, including manufacturers, e-commerce platforms, and logistics companies. Such partnerships could be in the form of: real-time reporting and verification channels for counterfeit detection; collaborative training for enforcement officers on product authentication; and joint public awareness campaigns to inform consumers about the dangers of counterfeit goods.

“Africa must embrace digital tools that improve traceability and transparency across supply chains. Such as the use of: blockchain-based tracking systems for product authenticity verification; digital product identifiers (such as barcodes, QR codes, or RFID tags); and AI-powered customs inspection systems to analyse shipment data and flag suspicious consignments to enhance surveillance capabilities while reducing reliance on manual inspection.”