When considering the associated loss of tax revenue, the true cost of counterfeiting could be much higher – and the problem seems to be getting worse – Michael Lamont
Recent police operations have resulted in a significant confiscation of counterfeit goods, highlighting the detrimental effect these products are having on the economy of South Africa. Authorities claim that this illicit trade is causing Mzansi to lose billions of rand annually, leading to police now intensifying their operations to combat this growing threat.
Fake designer bags apparel seized
A well-organized police operation involving specialized Metro Police task teams apprehended a Malawian national and seized a variety of counterfeit items, including cigarettes and medication on 20 May 2025, in Chatsworth, south of Durban. A second operation with similar goals took place in Bruma, Johannesburg, where copies of designer bags, shoes and other apparel were confiscated by members of the South African Police Service on 22 May 2025.
Counterfeit goods specialized teams
The Chatsworth-based Operation conducted by the Durban Metro Police Drug Team in conjunction with the Chatsworth Unit, Crime Intelligence, and Chatsworth SAPS Tracing Team resulted in a successful outcome following intelligence received regarding the suspected sale of stolen and fake branded goods. Various illicit items including 31 cartons of illegal cigarettes along with various other fake products such as six pairs of Puma soccer boots, six pairs of school shoes, five bottles of regulated medication as well as R2 322 in cash were confiscated. The suspect was arrested and charged in accordance with relevant sections of the law, which includes the contravention of the Medicines and Related Substances Control Act.
Operations to curb fake goods trade
Durban Metro Police Spokesman, Colonel Boysie Zungu, said their team was dedicated to suppressing the circulation of stolen and counterfeit goods throughout the eThekwini Municipality. “This activity is detrimentally impacting the nation’s economy, hindering employment opportunities for South Africans and causing widespread negative repercussions. We will not allow this illegitimate trade to persist!” Zungu warned that efforts were currently ongoing to mitigate this underground trade. “We have devised various strategic operations set to escalate in the coming months to crackdown on this illegal goods market,” he said.
Massive blitz in Bruma
In Johannesburg the SAPS National Counterfeit, Contraband and Illicit Goods Unit carried out a massive blitz in Bruma on Thursday 22 May 2025. The team carried out a search and seizure warrant under the Customs and Excise Act and the Counterfeit Goods Act in collaboration with various other stakeholders. A substantial amount of fake branded goods was confiscated on Thursday and the authorities are still evaluating the total value of these goods, which included counterfeit handbags, perfumes, and other accessories.
Billions of rand lost
According to Spoor & Fisher, a firm specializing in combating counterfeiting in South Africa, the prevalence of counterfeit items has led to the country losing a massive amount of money. Michael Lamont, a partner at Spoor & Fisher, said counterfeit and illicit goods were estimated to cost the South African economy billions of rand on an annual basis. “When considering the associated loss of tax revenue, the true cost of counterfeiting could be much higher – and the problem seems to be getting worse,” explained Lamont.
Demand for cheaper goods
Lamont said: “There is a steady increase in the demand for cheaper goods due to the current economic climate in South Africa and in many of our neighbouring countries. This demand is often satisfied through the purchase and consumption of counterfeit goods, causing the counterfeiting marketing to continue to grow at a steady rate.” Lamont reiterated there were various types of victims of counterfeiting and that no sector was immune. He said that consumers, who typically purchase counterfeit goods unknowingly or intentionally were misled by their resemblance to genuine products or due to their desire to pay less.
While counterfeit goods are often seen to be predominantly fashion and luxury goods, counterfeits also include fake pharmaceuticals, cosmetics and FMCG products, with the risk being the danger to one’s health associated with taking medicines and consuming FMCG goods of unknown quality –
Michael Lamont
SOME FACTS ABOUT THE ILLICIT TRADING OF GOODS
- Lost tax revenue, with the estimated losses associated with counterfeiting reach into the billions each year. The general non-compliance of tax regulations by counterfeiters, further compounded by the negative effect that counterfeiting has on legitimate business, makes it difficult to quantify the loss of revenue to any country, however, it is clear that the loss is substantial.
- Counterfeit goods are commonly associated with items like apparel, footwear, and luxury products. However, they can also encompass everyday necessities like spices, instant yeasts, and sanitary pads, as well as other products such as batteries, fire-resistant suits, and vehicle parts.
- According to the World Health Organization (WHO), around 100 000 individuals in Africa lose their lives annually as a result of fake drugs/medication. Counterfeiting is a criminal act that not only impacts its victims directly but also carries grave implications.
- Legitimate enterprises endure significant financial losses as a result of counterfeiting, which leads to a decrease in revenue. Similarly, intellectual property proprietors dedicate considerable efforts to establish and preserve their brands. The counterfeiters’ exploitation of these brands jeopardizes the worth and credibility of intellectual property.
- This leads to job losses and slower growth as well as the potential reputational damage when counterfeiters pass off subpar (below average, or below what is expected) products as the original items.
- The trade mark at its most basic is a badge of origin, a badge consumers identify with and place their trust in. These illicit goods take unfair advantage of the value placed in a specific brand by the consumer with little regard for the damage or harm they pose.
Report crimes anonymously
Durban Metro Police have urged members of the community to report any sale of counterfeit any fake goods in Durban to 031 311 1111. Alternatively such crimes taking place throughout South Africa can be reported to SAPS Crime Stop on 08600 10111.
Other numbers include:
- National Anti-Corruption Hotline: Call 0800 701 701 to report counterfeit goods and related activities.
- Anti-Illicit Trade Desk (AITD) Hotline: Call 0800 014 856 between 8 am and 5 pm daily, with an automated service available after 5pm and on public holidays.
- Anti-Illicit Trade Desk (AITD) Email: Send an email to [email protected].
- Anti-Illicit Trade Desk (AITD) Online: Report anonymously online through the Consumer Goods Council of South Africa (CGCSA) website- https://www.cgcsa.co.za
- National Consumer Commission (NCC) Hotline: Call 012 065 1940 to report fake or expired food.
