Capacity Building on Competition Policy in Select Countries of
Eastern and Southern Africa
7Up3 Project
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7Update EnewsLetter Vol. III
Project Progress
The first round of national consultations on the project was held in the capital cities, primarily to sensitise a group of diverse stakeholders of the objectives and anticipated outcomes of the 7Up3 initiative, in each project country. During the discourse in these consultations, stakeholders comprising the National Reference Group (NRG) provided their views on the Preliminary Country Paper (PCP) that had earlier been prepared by the research partners, and suggested ways for moving the project ahead in the respective countries.
Subsequent to this, the research partners engaged in preparing the ‘Final’ version of the PCP, incorporating comments received during the NRG meetings.
PCPs from Botswana, Ethiopia, Malawi, Mauritius and Uganda have since been finalised and uploaded on the project webpage. (Refer; www.cuts-international.org/7up3.htm). The PCP from Namibia is currently being finalised by the representative of the country partner organisation – Namibian Economic Policy Research Unit (NEPRU).
As regards, Mozambique, the project implementation process is expected to speed up following the involvement of Economic Justice Coalition (EJC) as the new project partner in the country. EJC entered into a partnership agreement to execute the project, following the termination of the contract between CUTS and the earlier research partner of the country: University Eduardo Mondlane.
Currently, the partners in Botswana, Ethiopia, Malawi, Mauritius and Uganda are engaged in field surveys to assess the level of awareness of specific stakeholder groups on competition per se, and analyse their perceptions of the benefits of a competitive environment for consumer welfare and economic development. Three stakeholder groups comprising the business community; consumer representatives; and government and regulatory authority officials are being targeted for this survey. The outcomes from this survey would be incorporated into a detailed research document (Country Research Report on Competition) that would analyse the state of competition in the project countries in detail, and recommend specific advocacy and capacity building activities to be undertaken in the next stage (Phase – II) of the project.
During the NRG meetings, there were suggestions from the NRG members in some project countries to undertake sector-specific studies on competition in the project countries. The 7Up3 Project Coordination and Management Unit (PCMU) decided to develop a compilation of brief essays on ‘Competition in Select Agricultural Products Sector’ from the project countries. It was also decided that in addition to the partner organisations, efforts would be made to engage members of the NRG in the project country for developing these essays. It was clearly spelt out to the researchers engaged with this exercise to develop these essays highlighting the adverse impact of the lack of competition and/or anti-competitive practices on marginal farmers/producers of specific agricultural products.
In an effort to keep the interest among the NRG members alive on competition and regulatory issues in the project countries and the region, an e-discussion group called the 7Up3 Forum has been created. This forum has a present membership base of 214, which is expected to grow with time. In addition to NRG members from the project countries, project partners, project advisory committee members, development partners, representatives of regional authorities and other key personalities have been added to this e-group. News stories, articles etc. on competition and regulatory issues from the project countries and the region are being posted on this forum, to stimulate discussions. It is expected that this e-discussion group would act as an effective outreach tool both for the project, and the subject of competition and regulation within the region.
The details about the project are available in the project web page, www.cuts-international.org/7up3.htm.
News from project countries………
COUNTRY
BOTSWANA
ETHIOPIA
MALAWI
MAURITIUS
MOZAMBIQUE
NAMIBIA
UGANDA
REGIONAL NEWS
NEWS
Draft Competition Policy presented in Parliament
The draft competition policy has been welcomed by Members of the Botswana Parliament, and hailed as a step forward by the government to stimulate economic development and induce an orderly marketplace.
Petrol still cheapest in Botswana
The formation of a National Petroleum Fund, has helped Botswana cushion domestic petrol prices, which remain to be one of the lowest in the Southern African region, in spite of the price surge in the international market. The Petroleum Pricing and Operational Committee (PPOC) has been effective in addressing the issue of pricing, claims the government.
Botswana Mauritius sign investment agreement
An investment treaty signed recently between the governments of Botswana and Mauritius is expected to increase the volume of trade between the two countries, and protect the interest of investors.
Technology to the aid of coffee producers
The first ever ‘internet-auction’ for African coffee, has yielded unprecedented returns for the Ethiopian cooperative coffee producers. The system serves the dual purposes of satiating the thirst of Western coffee lovers, who are willing to pay the right price for quality coffee, and providing good returns to the Ethiopian producers.
Ethiopian carrier enjoys edge over competitors
The Ethiopian Airlines continues to reign supreme in the region with efficient service delivery, thereby gaining the confidence of its passengers, most of who have opted to fly the carrier traveling in and out of the country. Motivated by its profits from the current year, the airlines company is set to enhance its services to retain the confidence of flyers.
Mining policy to gain benefits from sector
The Ethiopian government is realising the need for a comprehensive mining policy to gain benefits from the country’s mineral potential. This view has been endorsed by the Mining Ministry, which considers that such a policy would help promote the development of the mining sector, and help people employed in it.
Regulating tobacco sale in auction floors necessary
Clive Stanbrook, a renowned British lawyer has called the Tobacco Control Commission to action, for regulating sale of tobacco in the auction floors in the country. In a report compiled by him, Mr. Stanbrook has held the structure of the country’s tobacco market responsible for the existence of anti-competitive practices in the auction floors.
Malawi telecoms sale put on hold
How can a US$ 750 million company be sold for US$ 31 million? A question that a Director of the country’s fixed-line monopoly, Malawi Telecommunications Limited (MTL) asked while reacting to the government’s plans of selling MTL to a consortium comprising of domestic and international players. The President has come to rescue of the company’s employees, by suspending its sale for the time being, till certain key ‘issues get resolved’.
Malawi in need of National Export Strategy
The Malawian Chamber of Commerce and Industry (MCCI) is demanding a national export strategy for the country. The MCCI claims that the country cannot grow only by depending on domestic buyers, and needed to venture out with sellable products, utilising the ‘open-door’ policy of the government.
MTML stays ahead
Mahanagar Telphone Mauritius Limited (MTML), subsidiary of Mahanagar Telephone Nigam Limited, a Government of India enterprise, intends to remain ahead as a leading telecom service provider in Mauritius, aiming to achieve a target of 100,000 lines by the next year. Pursuing this objective the company recently launched its post-paid international long distance call service.
Beer Monopoly ends
Black Eagle beer, a recently launched product of Universal Breweries is set to end the monopoly in the market enjoyed by Mauritius Breweries. The beer that underwent a pre-launching tasting exercise has already been reported to earn its place among consumers.
Doubts raised on anti-dumping legislation
Consumer activists have criticised the demand made by business chambers in Mauritius for introducing an anti-dumping legislation to regulate unfair trade practices in the country. Doubts have been raised on the efficiency of anti-dumping policies to work for the benefit of consumers.
Steady signs of progress
Mozambique has shown steady signs of progress and is expected to sustain a GDP growth rate in the 6-7 % range in the next year (2006) as well. Experts believe that the country’s success over the past years has been due to a combination of – surge in infrastructure projects, increased donor interest and enhanced private sector engagement.
Second wave of reforms on the anvil
The IMF has urged the country’ government to engage in the second wave of reforms, capitalising on the prevailing conducive environment that has seen the country progress in the recent past. Welcoming the advances made by the country, a representative of the IMF asserted that time was ripe for Maputo to strengthen institutions and catalyse activities in the private sector.
TNC adheres to labour norms
Mozambique Leaf Tobacco, a subsidiary of the US based Universal Leaf Africa Company has assured that majority of the labour force to be employed in the company’s processing units would be locals, and not foreigners as alleged by various sources. The Labour Ministry has welcomed the move, and urged all foreign companies to abide by the labour legislation in the country.
Grape industry – a success story
Grapes in Namibia mature in November, earlier than the normal season of December when grapes mature in all other parts of the Southern Hemisphere. This gives a competitive edge to Namibian grapes, and hence the industry has witnessed progressive growth in recent times.
Textile Co. uses and abuses Namibia
The Namibian government granted special incentives to Ramatex, a Malaysia-based textile company, for establishing its subsidiary in the country. The Company enjoyed duty-free access to US markets on account of the AGOA. However, with the lapse of textile quotas, Ramatex retrenched 1600 local workers. Observers lament that the benefits from Ramatex’s investment have been meager and do not justify the support provided by the government for its establishment.
Tullow Oil to cut Kudu stake
Ireland-based oil and gas company, Tullow Oil is all set to cut back its stake in the Kudu Gas project, that involves treating and delivering gas from the Kudu fields to a gas-powered electricity generation station operated by NamPower. This decision paves way for a new entrant in the country’s largest power generation scheme.
Zambia-Namibia for closer ties
Presidents of the two neighbours have called for greater cooperation in the areas of agriculture, tourism, mining, education, energy, transport and communication.
Lending rates plummet amid competition
Experts opine that competition and efficiency in Uganda’s financial sector has led to a steady decrease in the lending rates of commercial banks.
Cooking oil companies engage in backbiting
It took the intervention of the Uganda National Bureau of Standards (UNBS) to clear the grounds off the press war that had initiated between two rival palm oil companies. The companies had alleged each other of not complying with food standards regulations, and bewildering consumers. UNBS warned companies to adopt ethical practices and to refrain from acts that could mislead consumers.
Tax harmonization required
The Minister of Trade has called for removal of tax imbalances between countries in the East African region. He asserted that this measure would help reduce the rampant smuggling of goods across borders that lead to heavy revenue losses for the government.
Regional Telecom Network for COMESA
Comtel a regional telecommunications network would connect 22 nations across the continent very soon. The move expected to boost trade within the region, is supported by the African Development Bank.
Tourism standard for EAC
Kenya, Tanzania and Uganda have adopted industry standards to evolve a better hospitality regime and attract tourists to the region. The countries share portions of various wildlife reserves, and therefore are keen to promote the region as a single tourist destination.
Economic integration crucial for southern Africa
The South African Reserve Bank Governor, Tito Mboweni has given a clarion call to all the nations in the region to make efforts towards economic integration, in order to compete with economic blocs such as the European Union (EU). He stated that many countries of the region hold dual membership of COMESA and SADC, which poses a number of problems for them.
SADC Summit to address development issues
Heads of state and government from all 14 member countries participated in a summit to address key issues pertaining to regional integration, poverty alleviation and sustainable development.