Botswana: Competition Bill Goes for Second Reading

The Minister of Trade and Industry, Baledzi Gaolathe presented the Competition Bill for second reading yesterday in Parliament yesterday.

The main objective of the proposed law is to regulate competition between firms as well as to establish a Competition Authority. "The bill basically provides for the prevention of anti-competitive practices in the market. It aims to address problems arising from the globalisation cartels, abuse of dominance, and monopolisation of key sectors of the economy by corporate entities following the opening up of markets as a result of economic reforms and liberalisation of international trade," Gaolathe said.

He added that many countries have adopted the law in recognition of the important role, which competitive markets can play in promoting economic growth and alleviating poverty. He said that evidence has shown that in unregulated markets, businesses often resort to anti-competitive behaviour that can nullify the benefits of trade liberalisation. "This has made it necessary for governments to enact competition laws in order to safeguard market reforms from erosion by anti-competitive practices in de-regulated trading environment," the minister explained.

The bill proposes the state will participate in trade or business for production, supply or distribution or the provision of any service within any market in Botswana that is open to participation by other enterprises. "In this way, the authority will consist of two tiers being the administrative wing to be known as the Competition Authority and which shall be responsible for receiving complaints and carrying out investigations, and the Competition Commission which will be the adjudicating arm of the authority and which shall exercise quasi-judicial functions," Gaolathe said.

The bill seeks to prohibit anti-competitive practices such as price-fixing, market sharing, bid rigging and resale price maintenance. "Under this approach, parties shall have no justification for engaging in such conduct, and if they are caught, the commission may impose civil financial penalties," the minister said. The bill empowers the authority to enter premises, search and seize documents or objects that may be related to the subject under investigation. "The authority shall also have powers to summon witnesses before it," he said.

Source:allafrica.com/