A 26-year-old site engineer, Mizab Ahmed, fumed with anger. Two months ago, he had visited the Autobis Tera area, excited to snag a pair of Beats headphones from his monthly salary of 20,000 Br. He plunked down 2,500 Br, convinced by the packaging that these were the real deal. But his triumph was short-lived. One earpiece went silent.

Mizab claims he was not looking for trouble.

"I only asked him to swap it for another pair," he told Fortune.

But the vendor refused, recalling that inspecting unopened items was not part of the deal. "I was shown another piece that works," Mizab sighed, realizing he had been tricked into buying a counterfeit.

Counterfeit products are surfacing in the local markets. From watered-down clothes and spare parts to fake pharmaceuticals and cosmetics, these knockoffs drag down quality standards and threaten consumer health in some cases. The 1.7 trillion dollar global industry is attributed to avaricious businessmen and high-profile occasions where foreign manufacturers tweak content destined for low-income countries.

A recent report by the Swiss NGO Public Eye exposed a disturbing trend. Nestle, a giant in the baby food market, was caught sending products with vastly different nutritional content to lower-income countries. While their Cerelac and Nido products contained no added sugar in Germany and the UK, Ethiopian babies were getting a whopping five grams per serving.

Ensuring quality in the marketplace is a multi-agency effort overseen by the Ministry of Trade & Regional Integration. Conformity Assessment Enterprise is tasked with inspecting, testing, and certifying products while the Institute of Ethiopian Standards develops and enforces quality benchmarks for new arrivals, sometimes collaborating with the countries of origin. Accreditation Services functions as a reviewer, granting a final stamp of approval and the Calibration Services is supposed to ensure the accuracy of labelled volumes and weights, with hopes of safeguarding consumers from being misled.

Despite efforts by the Ministry and regulatory bodies like the Ethiopian Food & Drug Administration (EFDA), ensuring product quality remains a challenge. The eight-month trade report to Parliament highlights the proliferation of smuggled goods, budget constraints, and a flourishing illegal trade network.

Over the past nine months, the Enterprise has granted quality certification to over 19,000 products and services. This includes inspections on nearly 31 million litres of edible oil and around 900,000Qtl of fertiliser.

According to Tekea Berhane, communications director, testing and inspection procedures are initiated upon requests from regulatory institutions such as the EFDA and the Ministry. He said the Enterprise employs a rigorous testing process across its nine laboratories, encompassing biochemical and electro-mechanical departments.

"Products subject to mandatory standards can only enter the market after completing our tests," he said.

The Institute maintains a database of over 11,000 standards, with 300 mandatory specific products. It reaches out to new businesses offering products or services and occasionally communicates with origin countries. However, their role is limited to standard-setting and verification; they do not pursue legal action unless false certifications are involved.

Only 372 companies have received official quality certifications from the Enterprise, which is expanding its reach by building a branch office at Lamu Port in Kenya. Meanwhile, there is room for improvement in weeding out low-quality goods. In the first eight months of the year, authorities blocked nearly 880tns of substandard products from entering the country, forcing the closure of around 15 local manufacturers.

According to Mengistu Tefera, technical specification chief at the Institute, they prioritise public health that causes environmental impact, and the prevalence of adulterated goods. He said all legal imports are inspected by Enterprise agents against these established standards.

"Only smuggled goods slip through the cracks," he said.

Standards for imported products are often derived from international organisations like the International Organisation for Standardisation (ISO), while domestic products involve consultations with consumers and producers. However, Mengistu acknowledges the need for continuous improvement in inspection capabilities at import points to adapt to the ever-changing space.

"Without staying technologically updated," he warns, "businesses risk becoming irrelevant."

According to the Organisation of Economic Co-operation & Development (OECD), counterfeits are classified based on risk. While some, like electronics or toys, cause minor inconveniences, others, like fake pharmaceuticals and cosmetics, pose serious health threats. Ethiopia's ranking of 66th out of 193 on the Organised Global Crime Index 2023 indicates the presence of counterfeit products, often entering through increasingly sophisticated smuggling methods.

EFDA is combating this issue, particularly concerning health risks. Recently, they warned health institutions against prescribing a potentially harmful over-the-counter medicine. Fozia Mohammed, head of the inspection desk, said smuggled products bypassing inspections pose the greatest danger.

The issue is complicated by a surge in illegal cosmetic imports. Following restrictions on foreign currency allocation for cosmetics last year, some businesses have resorted to smuggling to meet consumer demand. While EFDA rigorously screens the nearly 2,000 licensed medical importers and wholesalers, cosmetics suppliers face lower entry barriers, allowing some to operate with licenses and then disappear.

Fozia stresses the importance of inspections in preventing hazardous chemicals from entering the country through unregulated channels.

"We can only regulate what comes in through proper channels," she said.

The counterfeit medical industry is a booming black market, with Africa bearing the brunt of its dangers. A World Health Organisation report reveals a staggering statistic: 42pc of the global 200 billion dollar counterfeit market flourishes in Africa.

Dermatologist and researcher Tesfaye Ketema (MD) witnesses this dark side firsthand. He treats a constant stream of young women between the ages of 18 and 35, suffering from burns, itching, and thinning skin – all caused by unregulated beauty products.

"These low-quality fakes often contain irritants that wreak havoc on specific skin types," he said.

The problem extends far beyond major cities. Tesfaye, who previously served in the Somali Regional State, has seen the devastating effects of smuggled cosmetics reaching even remote villages.