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Challenges to Competition Reforms in Africa

Challenges to Competition Reforms in Africa. By Chilufya Sampa Director Mergers and Monopolies. Introduction. Reforms are easier said than done Zambian economy was liberalised in 1991 and competition law passed 1994 Law had weaknesses 2006 process to amend began

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Challenges to Competition Reforms in Africa

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  1. Challenges to Competition Reforms in Africa By Chilufya Sampa Director Mergers and Monopolies

  2. Introduction • Reforms are easier said than done • Zambian economy was liberalised in 1991 and competition law passed 1994 • Law had weaknesses 2006 process to amend began • It has taken four years for the Competition and Consumer Protection Bill to be tabled before Parliament • Not a Priority • Lack of political will and sponsorship • Lack of a competition culture • Competition not easily understood hence low public interest

  3. Why reform • Reforms were meant to address shortcomings • Institution is not meeting objectives • To improve the enforcement of the law • To be more transparent in enforcement • To be more accountable • To provide for effect decision making and due process • Better coordination with Sector Regulators • To provide for best international practices were possible

  4. Challenges facing Competition Reforms in Africa – CUTS STUDY • Competitive Neutrality- that there is no level playing field between public enterprises and private companies • Nexus between Government and Big Firms- lack of good governance where Government favours certain companies over others • Small and Medium Enterprises - that SMEs do not have adequate policies that promote • Liberalisation and Privatisation – no sequencing in implementing these policies • Trans National Corporations – abuse of power

  5. Challenges today • Mainstreaming competition in national development strategies– including SMEs policy • Public interest matters – fairness and consistency • Dominant players and State Owned Companies – level playing field • Concurrent Jurisdiction with Sector Regulators • Lack Public and Govt support

  6. Way Forward • Mainstream competition into national development • must have a national policy on competition • Advocacy • Include competition in government strategies for development • Enforce the law • Win over Government to support reform • Public interest Issues • Define them in legislation or regulations • Consider current govt policy • Win over Private sector to support reform

  7. Way Forward Cont • Dominant Players and State Owned Companies • Advocacy with Government • Investigations and studies highlighting effect on competition • Win over both Govt and Private sector to reform • Concurrent Jurisdiction with Sector Regulators • Define boundaries through MOU • Be mindful of regulatory capture of Sector Regulators • Advocacy • Win over critical stakeholders to reform

  8. Way forward • Lack of Public and Government Support • Show stakeholders relevance of competition • Raise awareness of competition and benefits • Prosecute wrong doers • Highlight limitations • Make noise on achievements • Win over the PUBLIC for reforms

  9. THANK YOU ZAMBIA COMPETITION COMMISSION 4TH FLOOR MAIN POST OFFICE BUILDING CAIRO ROAD, P.O. BOX 34919 LUSAKA TEL: +260211222775 FAX:+260211222789 EMAIL: ZCOMP@ZAMTEL.ZM ZAMBIA

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