Overview of Competition Law in Botswana
The presentation outlines key aspects of the Competition Law of Botswana, including the rationale behind it, expectations, and the elements of the Competition Act. It highlights the need for competition policy to safeguard local businesses and promote economic diversification. The law aims to regulate various practices such as abuse of dominance, cartels, mergers, price-fixing, and more to ensure fair and open markets for wealth creation.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
BRIEF ON THE COMPETITION LAW BRIEF ON THE COMPETITION LAW OF BOTSWANA 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 Policy preceded by an Economic Mapping Survey that noted levels of unemployment, increasing dominance of foreign firms in Botswana s economy The Government of Botswana through its Cabinet adopted the National Competition Policy for Botswana in July 2005
1. INTRODUCTION contd The 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 contd Arising from the Policy, the Government through its National Assembly/ Establish the Competition Authority Regulate competition in the economy Outline its mandate Parliament enacted the Competition Act in 2009 whose objectives in its preamble are to:
1. INTRODUCTION contd Guided By Accountable A THE Other over- arching National Policies to Govt through the Minister Govt COMPETITION AUTHORITY IS Agency
ELEMENTS OF THE COMPETITION ACT OF BOTSWANA ABUSE OF DOMINANCE : CARTELS: MERGERS - Price-Fixing VERTICAL AGREEMENTS : - - Excessive Pricing - Bid- Rigging/ Collusion Acquisitions - Predatory Pricing -Takeovers - Resale Price Maintenance - Market/ Customer Allocation Amalga- mations - Territorial Restraints - Tied Selling
2. RATIONALE FOR COMPETITION LAW 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)
RATIONALE contd 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 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 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
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: 11
Sector Policy Makers/ Technocrats Politicians Regulators CSOs/ Big The Press Business Academia Consumers SMEs 12
3. EXPECTATIONScontd The Act requires the CA to ensure most of its decisions lead to: Lower prices, higher quality or greater choice for consumers Promotion or maintenance of efficient production, distribution or provision of goods & services Advancing the strategic or national interest of Botswana in a particular economic area 13
3. EXPECTATIONS contd 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. 14
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 15
KE A LEBOGA FOR FURTHER INFORMATION: Thula Kaira - CEO Competition Authority Plot 50664, Fairgrounds Office Park Private Bag 00101 Gaborone, BOTSWANA Tel: +267 393 4278 Fax: +267 312 1013 Thula.Kaira@competitionauthority.co.bw Email: Thula.Kaira@competitionauthority.co.bw Thulasonikaira@yahoo.com Thulasonikaira@yahoo.com FACEBOOK: Competition Authority Botswana Twitter: CompetitionBots
