SADC aims to tackle cross-border cartels
Isaac Pinielo | Thursday June 2, 2016 14:43
This was testified by the recent signing of a memorandum of understanding (MOU) in Gaborone by competition authorities in the region.
Speaking at the event, senior programme officer of trade at the SADC Secretariat, Jabulani Mthethwa said the signing of the MOU is a culmination of a consultative process, which commenced last July at an extra ordinary meeting to develop a MOU on inter-agency cooperation.
“The signing marks the implementation of the declaration on regional cooperation in competition and consumer policies signed by heads of state and government in 2009,” he said.
He indicated that over the years, the declaration has provided a platform for capacity-building and technical assistance in the development and enforcement of competition policy in SADC member states.
According to Mthethwa, the objective of the MOU is to foster closer cooperation in the enforcement of member states’ competition laws in order to address effectively national and cross-border competition problems or anti-competitive business practices such as cartels, abusive practices of dominant firms and monopolies.
In terms of the substantive provisions of the MOU, he stated that the competition authorities have committed themselves to cooperate by sharing information on cases, coordinating investigations and undertaking joint capacity-building and research activities, among other things.
Recognising that some information on cases may be commercially sensitive, he noted that the competition authorities also committed themselves to observing confidentiality in the implementation of the MOU.
“This MOU comes at an opportune time when SADC has adopted an industrialisation strategy and roadmap, which among other objectives promotes the creation of sustainable regional value chains.
“Competition authorities will be expected to play a pivotal role in the development and implementation of these regional value chains by ensuring that a conducive business environment for cross-border investments exists,” said Mthethwa.
Acting chief executive officer of the Botswana Competition Authority, Tebelelo Pule said out of the 15 SADC member states, there were 10 authorities signing the MOU, noting that the remaining five were still developing their laws while others are yet to establish their respective institutions.
“This is a welcome development in our region, and I believe that our joint efforts in implementing our respective competition laws will yield positive results in enhancing competition and economic growth in the community,” she said.
Some of the anti-competitive practices and unfair trade practices common in the SADC region include inability of firms to access supply chains in new or foreign markets, regional cartels (price-fixing, market sharing), selection of a single distribution channel by a dominant firm, deceitful, misleading representations and product safety standards, and mergers and acquisitions involving multinational companies operating in more than one SADC country, according to Gladmore Mamhare, programme officer at SADC Secretariat.