80 Percent of Computer Products Fake

November 12, 2007 (Nairobi) — Up to 80 per cent of computer consumable products on sale in East Africa could be fake, a major regional distributor with branches in four countries has claimed.

Among the most affected are the HP brand of toners and cartridges, according to Red Dot Kenya country manager Asif Saroya. Red Dot is a distributor of computers and related accessories with offices in Kenya, Uganda, Tanzania and Ethiopia.

He attributed the proliferation of counterfeits to the exponential growth witnessed in the ICT sector over the past five years, which has created a rising demand that unscrupulous traders are exploiting by offering cheap substandard products - mostly from the Far East.

There is a growing controversy around the world over the safety and efficacy of goods made in China, the world's fastest growing economy, which has been dogged by massive counterfeit claims.

Mr Saroya said the growth in the telecommunications sector is being driven by demand from development agencies, governments and the private sector and the expansion of ICT in rural areas across the region. He added that banks and telephone companies have especially pushed this growth.

Apart from HP, the world's largest computer manufacturer, the firm also distributes APC power products, D-Link, as well as the EScan antivirus software. It is the largest seller of IT goods in Tanzania, with a 90 per cent market share.

Worried that counterfeits could drive genuine products dealers out of the market, the company has come up with a series of strategies to beat the fakes.

Since that fake products are usually cheaper, the company is revising its pricing to make its products more competitive and forge a closer partnership with its dealers through loyalty programmes to encourage them to stick to its brands.

Mr Saroya was speaking in Nairobi during the second "champion night" to reward the firm's partners in Kenya. This followed a similar activity in Tanzania early last month. The Nairobi event was used to reward the Ethiopian partner since the market there is yet to expand. The firm is planning another ceremony for Uganda before the end of the year.

The Nairobi event recognised the most successful new distributors, largest growth, best managed, highest sales, and channel sales. These were won by Compulynx Ltd, MicroLAN Kenya Ltd, Computer Revolution Africa Ltd and Crescent Tech Ltd. To counter counterfeits, Red Dot has developed a hologram as a mark of security to make it easier for consumers to identify fake products.

A massive consumer education programme has also been mounted by the company and its distributors to inform users on how to avoid fake products.

(The East African)