Capacity Building on Competition Policy in Select Countries of
Eastern and Southern Africa
7Up3 Project
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7 Update Enewsletter Vol. VI
Project Progress
Research outcomes undertaken by the partners of the 7Up3 project in the seven project countries were among the issues that were discussed in a regional (mid-term) conference held in Addis Ababa on March 27-28, 2006,
(papers and presentations available at http://www.cuts-international.org/agenda_reg_conf_27mar06.htm). The conference provided the opportunity for the project co-ordination and management unit (PCMU) at CUTS, the partner organisations, project advisory committee (PAC) members, experts and practitioner from the region and outside to assess findings of the competition research undertaken in the region through this project and discuss the way forward, especially in terms of advocating for effective implementation of competition legislations in the project countries.
The regional conference was jointly organised by CUTS International and AHaECoPA, Ethiopia (the Ethiopian partner of the 7Up3 project), and held at the Hilton, Addis Ababa.
Some of key messages echoed at the conference were:
- Effective implementation of competition policy and law is an important instrument for reducing poverty, achieving Millennium Development Goals (MDGs), enhancing economic growth and private sector development in Africa;
- Adoption of appropriate laws on competition policy and sectoral regulation should be an essential requirement for all liberalised economic systems in Africa, as it is a key element that benefits consumers and business sector; and
- The project should test ways of engaging parliamentarians in debate on competition and regulatory policy issues. If successful, such a model could be used for continuous engagement of parliamentarians on economic policy issues.
Promotion of fair trade practices should be a priority not only for the government but also for businesses and consumers, as the latter are victims of unfair trade practice, said Ato Harka Haroye, MP and Chairman of Trade Practices Investigation Commission of Ethiopia.
According to Pradeep S Mehta, Secretary General, CUTS International, capacity building of national and regional institutions and establishing a network of people and organisations in support of fair competition and economic regulation in Africa are the main objectives of the project.
An effective competition regime can bring productivity gains to an economy, and thus enhance growth by ensuring free entry and exit to markets, for firms of all sizes. This encourages innovation, reduces costs and increases national competitiveness, all of which are crucial for productivity and growth. This were the reasons Karen Ellis of DFID, UK posted as to why DFID is interested in promoting competition policy and enhancing regulatory capacities in developing countries.
Apart from discussions on the state of competition in the project countries (Botswana, Ethiopia, Malawi, Mauritius, Mozambique, Namibia, and Uganda), the conference also featured presentations on the interface between competition and regulatory issues in key sectors like agriculture, pharmaceuticals, telecoms, and power.
CUTS believes in the power and conviction of civil society in promoting competition culture in the world, and invests a lot of faith in the ability of African civil society for promoting competition awareness at the national level and in the region. This confidence has been further boosted by the realisations of the 7Up3 project, which has helped CUTS identify constituencies of researchers, practitioners, and activists who are interested to work on competition policy and law issues. In a roundtable discussion held during the conference, representatives of various stakeholder groups debated on ways and means for enhancing the role of civil society in competition awareness – thereby promoting a healthy competition culture in Africa. (A brief outcome report of the discussions is available at http://www.cuts-international.org/pdf/7Up3_RC_RoundTable.pdf)
On the days following the regional conference (that is March 29-30, 2006), at the request of the Trade Practice Investigation Commission (the competition agency of Ethiopia), CUTS organised a training workshop on competition policy and law issues. Resource persons from the region and outside helped the 20-odd participants comprehend issues related to competition enforcement.
News from project countries………
COUNTRY
BOTSWANA
ETHIOPIA
MALAWI
MAURITIUS
MOZAMBIQUE
NAMIBIA
UGANDA
REGIONAL NEWS
NEWS
Ensuring Competitive Bidding
The government is working towards developing standardised bidding packages as pre-requisite to facilitate a competitive bidding process in the procurement of government supplies.
Protecting Consumers
The Botswana Government has promulgated micro-lending regulations to protect consumers from unscrupulous practices. An array of regulations is planned in the country (including a Competition Bill) that would help catalyse economic efficiency on the one hand, and protect consumers on the other.
Open Skies, Closer Bonding
South African Development Community Executive Secretary, Tomaz Salomao, has asserted that liberalisation of air transport has given to rise to competitive delivery in the region, adding that infrastructure should be accorded high priority as a basis for attainment of deeper integration and poverty eradication.
Two in Tune
The Ethiopian Broadcasting Authority (EBA) has announced first-ever licences to two private commercial FM radio operators in a move that many consider as a significant first step after the promulgation of the broadcasting of the broadcasting proclamation in June 1998.
Completing Preparations
The Ethiopian Telecommunications Corporation (ETC) has announced that it has completed all the necessary preparations to provide Standard Virtual Internet Service (SVISP) in order to satisfy the growing demand of its customers.
Protocol Perils
The Malawian Government is said to have defaulted on its commitment to implement the SADC protocol on reducing tariff schedules.
Green of the Earth
The Government of Malawi would soon embrace a strategy that encourages people to invest more in horticulture – in the production of fruits and vegetables.
Overhauling
Though the volume of harvest was almost double that of last year, concerns have remained about the ability of Malawi’s agricultural sector to withstand climate fluctuations and other adverse events. Experts believe the sector requires complete overhauling to counter the calamities.
Towards Madagascar
The government and farmers of Mauritius have begun looking to Madagascar. For Madagascar, this holds the promise for increased investments.
Assenting to Decreased Tariffs
The Information and Communications Technologies Authority has approved a considerable decrease in tariffs of International Private Leased Circuits (IPLC), fixed line services, international calls, and local calls.
Threadbare
The island’s once-thriving textiles industry has been contracting since 2002 – a process hastened by the end of global textiles quotas in January 2005.
Bumper Sugar Harvest
A year that has been marred by disputes between the industries and sugar producers on the price of sugar, has recorded the highest sugar harvest in the country’s history since Independence.
Waiting for the Pakistanis
The Pakistani business community has been urged to explore Mozambique where vast avenues for business are available and a big market awaits Pakistani goods.
Between Botswana and Namibia
The need to intensify trade and investment between Botswana and Namibia took centre stage at a meeting between the two countries’ Trade and Industry Ministers.
Joint Interests
Namibia’s Trade and Industry Minister called on the Finnish delegation to consider partnerships and investments in various sectors and projects.
Stake in the Shares
The Namibian Cabinet has decided to sell 34 percent of the government’s shares in the country sole mobile telecommunications provider to Portugal Telecom.
Weak Brew
Uganda has registered a marked decline in coffee exports, according to the Uganda Coffee Development Authority. However, the good news is that the returns from the sector were unaffected. New domestic companies have also entered the sector, which remains profitable.
Value-addition to Vanilla
Ugandan vanilla processors are looking to value-addition as a way of increasing earnings from exports, which have been badly hit by the current oversupply of vanilla in the world market.
Increased Subscribers
MTN Uganda has gone up considerably owing to increased subscriber numbers as recorded till March 2005.
Divided on Sale of Kinyara Sugar
The divestiture of Kinyara Sugar Works Ltd (KSWL) hangs in balance, following President Museveni’s directive to the finance ministry to offer the factory to a local firm.
Two Roads to Take
Tanzania’s coffee industry provides a test case of respective strengths of fair trade supporters and fair trade approaches where one employs consumer demand and the other, liberalising markets.
Africa: Emergent Investment Focus
Africa is attracting unprecedented private-sector interest, especially in commodity producing countries and those benefiting from recent debt relief.