THEME: INCLUSIVE AND SUSTAINABLE INDUSTRIALIZATION IN ACFTA AND COVID-19 ERA

The theme 2020 Africa Industrialization Day (AID), ‘Inclusive and Sustainable Industrialization in ACFTA and Covid-19 Era’, resonates very well with the mandate of the Anti-Counterfeit Authority of Kenya. Counterfeiting and other forms of illicit trade are a threat to the realization of sustainable industrialization and development in Kenya, other African countries and globally.

The AID marked on 20th November was a culmination of the Africa Industrialization Week (AIW) of 16th to 20th November whose objective was to raise awareness on the strides made to industrialize Africa; and to highlight the various activities being implemented, as well as the challenges faced in the efforts to advance structural transformation in Africa. The event also provided an opportunity to share best practices from other parts of the globe that have made advances in their industrialization drives, including the development of start-ups. The purpose of Africa Industrialization Day (AID), marked each year on November 20th, is to raise global awareness of the industrialization progress, challenges and problems faced by the African continent.

Kenya through the Authority’s parent ministry, the Ministry of Industrialization, Trade and Enterprise Development participated in both the AIW and the AID. The Ministry acknowledged Africans’ industrial and entrepreneurial spirit demonstrated during these unprecedented times of the COVID -19 pandemic. Industrial development is one of the key drivers of economic development and an undisputable determinant of any country’s share in the lucrative global trade. Intellectual Property Rights play a pivotal role in promoting innovation, industrialization and creation of employment.

Propagation of Illicit trade, counterfeiting included, has an adverse effect on industrial growth, employment and the health and safety of consumers. Counterfeiting poses a serious socio-economic challenge nationally, regionally and globally. This calls for proactive engagements and strategizing by both the manufacturing sector and the Government to enhance economic growth. Notably, counterfeiting is among many challenges facing the manufacturing sector; it undermines the concept of a free and open market which is fundamental to the enhancement of innovation, creativity, competitiveness, increased investment, job creation and improved economic situation in Kenya and the African continent at large. The manufacturing sector, a pillar in Kenya’s Big Four development agenda; targets to have the sector’s contribution to the Gross Domestic Product (GDP) rise from 8% in 2017 to 15% by 2022.

According to study undertaken by ACA in collaboration with other government agencies, private sector and the development partner Trade Mark East Africa (TMEA), illicit trade takes a significant share of GDP in Kenya at 8.9% and 9.3% in 2017 and 2018 respectively, almost at par with the contribution by the manufacturing sector. This demonstrates the great significance of continuously and aggressively addressing the infringement of intellectual property rights commonly referred to as counterfeiting. Counterfeiting remains a threat to the country’s strategies of industrialization.

Since counterfeiting is closely inter-linked with other forms of illicit trade, a coordinated approach is imperative. ACA has been at the forefront to spearhead coordinated multi-agency collaborations leading the development and unveiling of the National Action Plan and Implementation Framework to Combat Illicit Trade in Kenya in June 2019. This was a major milestone in the fight against illicit trade by ensuring a Government-wide coordinated approach.
The National Baseline Survey on Counterfeit and other forms of Illicit Trade in Kenya is yet another milestone towards the war on illicit trade in defense of the country’s vision of industrial-led trade development and an investment destination economy as a result of the assured protection of Intellectual Property Rights. The study provides crucial baseline information that will act as a point of reference in the design of the strategies to fight illicit trade and the results to expect. It also brings out sobering details on the extent of this trade in the country. Among these details is the total size of illicit trade, which was estimated at KES 826 billion in 2018, having risen from KES 726 billion in 2017.

Africans are known world over to be resilient and innovative; in the same stride, the Authority continues to work tirelessly to enforce the Anti-Counterfeit Act, 2008 and pursue collaborative partnerships to combat illicit trade by ensuring enforcement of intellectual property rights. This ensures the health and safety of consumers’ while promoting innovation and industrialization in the country. The Authority appreciates all manufacturers and industrialists and encourages all, small to large entrepreneurs, upcoming and previously existing to protect their intellectual property and collaborate with ACA in their enforcement.