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BRIEF ON THE COMPETITION LAW OF BOTSWANA
by
Thula Kaira - CEO
Presentation to the Civil Aviation Authority of Botswana Gaborone, 15 August 2012
PRESENTATION OUTLINE
1. Introduction
2. Rationale of Competition Policy/Law
3. Expectations from the Law
4. Conclusions
1. INTRODUCTION
The Government of Botswana through its Cabinet adopted the National Competition Policy for Botswana in July 2005
The Policy preceded by an Economic Mapping Survey that noted levels of unemployment, increasing dominance of foreign firms in Botswana’s economy
1. INTRODUCTION cont’dThe EMS also highlighted:
1. The need to safeguard and promote the growth and development of citizen-owned SMEs; and
2. Other Govt policy initiatives such as the diversification of the economy
1. INTRODUCTION cont’dArising from the Policy,
the Government through its
National Assembly/Parliament enacted the Competition Act in 2009
whose objectives in its preamble
are to:
Establish the
Competition Authority
Outline its mandate
Regulate competition
in the economy
1. INTRODUCTION cont’d
THE COMPETITION AUTHORITY IS
AGovt
Agency
Guided By
Other over-
arching National Policies
Accountable to Govt
through the Minister
ELEMENTS OF THE COMPETITION ACT OF BOTSWANA
VERTICAL AGREEMENTS
:
- Resale Price Maintenance
CARTELS:
- Price-Fixing- Bid-
Rigging/ Collusion- Market/ Customer Allocation
ABUSE OF DOMINANCE
:
- Excessive Pricing
- Predatory Pricing
- Territorial Restraints
- Tied Selling
MERGERS-
Acquisitions-Takeovers
Amalga-mations
• Competition law controls selfish business gains and consumer exploitation and strives to facilitate broad-based wealth creation by ensuring and provoking open and fair markets e.g by, inter alia, questioning & scrutinizing market agreements, and reviewing commercial & administrative barriers to domestic trade (just as trade law tries to do the same in intl trade)
2. RATIONALE FOR COMPETITION LAW
RATIONALE cont’d
Markets are susceptible to be captured by greedy business
entrepreneurs to the detriment of other possible beneficiaries and hence the
need for a transparent control system
UN SET of Principles & Rules on Competition
• … States, in their control of restrictive business practices, should ensure treatment of enterprises which is fair, equitable, on the same basis to all enterprises, and in accordance with established procedures of law. The laws and regulations should be publicly and readily available
… States should, at the national level or through regional groupings, adopt, improve and effectively enforce appropriate legislation and implementing judicial and administrative procedures for the control of restrictive business practices, including those of transnational corporations…
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3. EXPECTATIONS FROM THE LAW Creating a ‘fair’ business climate can be no
task for one Govt agency as various agents have been established to play their expert part
Definitions of ‘unfair competition’ are varied in the court of public opinion
As the competition law is in its infancy, there is need to identify and maintain a support base for this highly law, to include:
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Policy Makers/Politicians
TechnocratsSector
Regulators
Big Business The Press
CSOs/Academia
Consumers SMEs
3. EXPECTATIONS…cont’d The Act requires the CA to ensure most of its
decisions lead to:Lower prices, higher quality or greater
choice for consumersPromotion or maintenance of efficient
production, distribution or provision of goods & services
Advancing the strategic or national interest of Botswana in a particular economic area
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3. EXPECTATIONS… cont’d
Provide social-benefits which outweigh the effects on competition;
Take into account citizen empowerment initiatives of Government;
Further other national development programs
To achieve these public interests, the Authority engages as wide a range of stakeholders as possible before decisions are taken.
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4. CONCLUSIONS The National Competition Policy
addresses all public bodies to embrace rules and principles of competition in their decision making/acts which affect trade & commerce
As part of the public service delivery system of Govt, there is need for regulators to find and focus on common ground than fortify the Silos
We look forward to learning from the enormous experiences of CAAB
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KE A LEBOGA…FOR FURTHER INFORMATION:
Thula Kaira - CEOCompetition Authority
Plot 50664, Fairgrounds Office ParkPrivate Bag 00101
Gaborone, BOTSWANATel: +267 393 4278Fax: +267 312 1013
Email: [email protected] [email protected]
FACEBOOK: Competition Authority – BotswanaTwitter: CompetitionBots
