CA raises awareness on competition law
Gaone Marumoloa | Friday April 21, 2017 17:47
CA’s director of communications and advocacy, Gideon Nkala recently informed the youth at a Ramotswa workshop that the competition law does not protect individuals and their businesses but protects competition.
He said it will benefit up and coming businesses to access the market by ensuring that any anti-competitive conduct by established businesses, business restrictions imposed by regulations and acquisitions and mergers that would stifle competition are swiftly identified and redressed.
Nkala informed the youth that the CA has already made strides in its quest to make the marketplace accessible and competitive. He said the youth have been beneficiaries of viable businesses facilitated by the Authority’s intervention.
Nkala said the CA had received a number of complaints relating to access into franchises a practice he said, was compounded by an arrangement that allowed one territorial franchisee in the whole country particularly for very lucrative franchisees such as those in the food sector.
Gladys Ramadi, the manager for communications and advocacy, informed the participants that the CA has conducted a study with three other countries that has confirmed that ownership in the poultry sector is concentrated with a few players.
“With regard to Botswana, the study revealed that ownership in the poultry sector is unique and complex. The largest poultry producers in Botswana have ties to South African producers, and domestic producers are no match to these huge firms at the breeder and processing levels,” she said.
She added that the tight trade restrictions protect these dominant players from competition. Ramadi noted that as a result of these dynamics, the price of chicken in Botswana is among the highest in the region.
She told the attendants that one of the mandates of the CA is to advise government on competition issues and therefore it has presented some recommendations to the relevant ministry based on the study.