How counterfeit jerseys drain billions from Yanga, Simba SC

While no official study has been conducted on the full impact of counterfeit sports merchandise in Tanzania, a 2016 study by the Confederation of Tanzania Industry (CTI) found that 47 percent of consumer goods — including food, medicines, and construction materials — were counterfeits.

The report, based on data from interviews with 250 consumers and 47 manufacturers, illustrates the pervasive nature of counterfeits in the Tanzanian market.

The case of the seized jerseys remains under investigation, and no official statement has been issued. However, the estimated 45,000 counterfeit jerseys would have generated over Sh2 billion for Yanga and Simba if they had been sold at current market prices.

This season, a Yanga jersey sells for Sh45,000, while that of Simba costs Sh42,000. Counterfeit versions, however, sell for as little as Sh10,000 each, deeply undercutting genuine sales.

Impact on revenue and fan loyalty

Last year, Yanga reported a loss of Sh1.1 billion, with income totalling Sh21.2 billion against Sh22.3 billion in expenses.

While not all of this can be attributed directly to counterfeit jerseys, former club communications manager Haji Manara believes the club’s revenue potential could be significantly boosted by controlling the supply and sale of official jerseys.

“We need to devise a mechanism for controlling jersey sales. With our fan base, we could generate mega profits every year,” said Manara.

However, counterfeit jerseys remain a major obstacle, as they flood the market at a fraction of the price, eroding the clubs' revenue potential.

The former Secretary-General of Mbeya City FC, Mr Emmanuel Kimbe, recalls that their club sold over 40,000 jerseys in the 2013-14 season after joining the premier league, but sales plummeted soon after due to the arrival of counterfeits.

"We were doing very well after the promotion, but as soon as counterfeits appeared, sales dropped drastically," said Kimbe.

Enormous potential

Events like Yanga’s "Wiki ya Wananchi" (Citizens' Week) and Simba Day demonstrate the clubs’ enormous market potential. Both celebrations draw tens of thousands of fans to the Benjamin Mkapa Stadium, eager to display team loyalty.

If each of the 60,000 fans attending these events bought a genuine jersey, Yanga and Simba could generate between Sh2.5 billion and Sh2.7 billion in a single day.

On a broader scale, if even three percent of Tanzania’s population of 61.7 million bought team jerseys, the clubs could collectively earn Sh3.9 billion to Sh4.1 billion. However, these figures remain theoretical, as counterfeit merchandise continues to saturate the market.

Growing problem

Counterfeit jerseys, primarily sold through informal channels, present a difficult enforcement challenge. In February 2022, police in the Dar es Salaam Special Zone arrested 17 individuals for allegedly selling 1,208 counterfeit Yanga jerseys.

Five months later, authorities in Mwanza detained a businessman for possessing 296 dozen counterfeit Yanga and Simba jerseys.

Kimbe estimates that over 90 percent of jerseys sold locally are counterfeit, affecting both domestic and popular European clubs, such as Chelsea and Bayern Munich.

“Many of the jerseys seen in Tanzanian markets are counterfeit because there are likely no registered agents for these clubs here,” said Kimbe.

Authentic jerseys for clubs like Bayern Munich and Chelsea, sold online for around Sh245,000 to Sh300,000, are available on the streets of Dar es Salaam for only Sh10,000, often bearing logos and labels but lacking in quality.

Efforts by local clubs to work with police have yielded mixed results. While arrests have been made, ending the counterfeit trade has proven difficult due to deep-rooted informal supply chains.

Trademark and Copyright challenges

The seizure of the two containers of counterfeit jerseys has led to an ongoing investigation. The Tanzania Bureau of Standards (TBS) initially assessed whether the jerseys were sub-standard, while Brela, the Business Registrations and Licensing Agency, has been involved due to trademark infringement concerns.

According to TBS, counterfeit jerseys constitute a copyright violation rather than a quality issue, and Brela has indicated that trademark owners must demonstrate losses in court to seek compensation.

“The trademark owner needs to show how the counterfeit goods have impacted their sales and customer trust. This often requires detailed evidence of market losses,” said Andrew Malesi, a legal officer at Brela.

Tanzania’s Copyright and Neighbouring Rights Act of 2019 sets a maximum penalty of Sh20 million ($7,200) or imprisonment for up to five years for copyright violations.

However, trademark issues, as in the case of counterfeit jerseys, often fall into a gray area that requires specific evidence of financial harm.

Counterfeit goods deny the government tax revenue as well. According to Richard Kayombo, director of Taxpayers' Education at the Tanzania Revenue Authority (TRA), it’s difficult to track tax revenue specifically from jersey sales because businesses are taxed on total sales without itemising jersey transactions.

Legal action

In response to mounting counterfeit issues, Yanga recently announced their intent to take legal action against unauthorized sellers of their branded merchandise.

Yanga legal officer Simon Patrick said they are awaiting a full report from police on the confiscated jerseys before proceeding.

"We’re ready to pursue legal action once we have complete information about how many jerseys were involved," said Patrick.

Simba and TFF representatives also indicated they are prepared to take action but remain cautious while police investigations continue.

Looking ahead

As Tanzanian football clubs attempt to expand revenue streams through legitimate merchandise, controlling the counterfeit market is becoming crucial.

Establishing official sales channels and educating fans about the importance of buying genuine jerseys could improve revenues while strengthening fan loyalty.

Ending counterfeit sales will require collective action among clubs, law enforcement, and regulatory bodies like Brela and TBS.

With a national population passionate about football, achieving robust controls over jersey sales could not only boost club profits but also enhance the overall quality of merchandise available to fans.