A Cheap Gamble with a High Price: The true cost of Africa’s counterfeit electrical goods trade

Financial pressures in South Africa and across Africa have led to a surge in demand for cheaper products, creating a lucrative market for counterfeiters. This has even extended to electrical goods which have infiltrated between 40% to 80% (http://apo-opa.co/3YTloKH) of markets on the continent, posing a potentially lethal risk to millions of consumers. At best, they simply might not operate, but in the worst case, these products may result in unprotected installations, with burns or electrical shocks being inflicted on users as a result. In severe circumstances, fires or fatalities occur.

“Unfortunately, wherever there is demand, counterfeiters will find opportunities to profit,” points out Dr Andrew Dickson, Engineering Executive at CBi-electric: low voltage (www.CBi-lowvoltage.co.za/). “A case in point is solar power systems which have been surging in popularity especially in South Africa. This has led to a flood of uncertified components and substandard solar panels, raising concerns from the electricity minister (http://apo-opa.co/3OerUqI) and local solar companies.”

“Despite the risks, the tempting price tag of counterfeit electrical products keeps them in high demand,” he notes. “Consumers are unfortunately unaware of the implications of these purchases. This short-term focus on price, coupled with the absence of immediate consequences can lead to a preference for cheaper counterfeit goods.”

Illustrating the long-term cost-implications for consumers, Dr Dickson compares a R50 counterfeit circuit breaker to a genuine one costing R100. “The short-term savings might seem appealing, but the potential repercussions are severe. A malfunction could lead to damage to property or personal injury, so the total cost of losses from a counterfeit product far exceeds the initial savings gained from their purchase.”

He highlights that a key difference between real and counterfeit electrical goods lies in the materials used. “With manufacturers of these items cutting corners, this translates to the use of substandard materials. For example, instead of using tested and compliant plastic materials that are non-flammable or self-extinguishing to produce products and components, they use cheap, untested, and non-compliant alternatives. This is a huge health and safety hazard as they are highly flammable, do not self-extinguish and may also produce toxic smoke, making the electrical installation unsafe and consequently putting the consumer at risk.”

“Additionally, authentic products undergo rigorous testing to meet stringent safety, environmental, and performance standards and regulations required both domestically and internationally, which is why they tend to be more expensive. Counterfeit products, however, bypass these essential checks, as compliance is costly and time-consuming,” adds Dr Dickson.

Beyond safety, he shares that investing in compliant electrical goods offers a wealth of benefits that far outweigh a cheaper version as these products typically last longer since they are made with better materials and construction. “Compliant products offer an extended lifespan, saving consumers money on replacements. In addition to comprehensive safety assessments, these products undergo accelerated life tests which include exposure to harsh environmental conditions such as aging and salt spray. They also perform better and are more efficient.”

Dr Dickson observes that despite efforts by African governments to implement safety, quality, and environmental regulations for electrical goods, the primary challenge lies in the blatant disregard by counterfeiters. “This, however, is being driven by the demand for cheaper, non-compliant products, and is a trend evident not only among individuals but also businesses and even government institutions.”

“Legitimate manufacturers, certification bodies and distributors have a shared responsibility to inform consumers about the risks associated with counterfeit electrical goods, so they understand that the lower cost is not worth the risk,” he stresses. “Additionally, by providing guidance on identifying genuine items and the importance of using reputable suppliers and electrical contractors, we can empower consumers to make informed choices.”

If consumers come across counterfeit electrical products, Dr Dickson advises that they report them to the Consumer Goods Council of South Africa (http://apo-opa.co/4ezOl4i) and/or to their nearest police station.

“The difference between life and death can hinge on a plug. While the initial price of authentic products might be higher, it pays off in the long run,” he concludes.

Recognising that informed consumers can help curb the counterfeit trade, CBi-electric: low voltage has produced a white paper titled “Pulling the Plug on Counterfeit Electrical Goods in Africa”. The document, which aims to illuminate the economic and safety hazards posed by counterfeit products and provide a multi-pronged approach to combatting their prevalence on the continent, can be accessed here: http://apo-opa.co/40R1QJw.

Distributed by APO Group on behalf of CBI-electric: low voltage.

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