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 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 Reforms are particularly difficult because competition is not well understood in Africa. To effect reforms that are effective there has to be support from stakeholders either from the private sector or from Government. When this support is lacking reforms become difficult to implement.

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 The objectives to be achieved have to be understood by all stakeholders especially the movers of reform.

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

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 The challenges remain the same. The same issues are still with us because changing a cultural mindset takes time. There are still people in our governments who feel competition policy in developing countries is not desirable.

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

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

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

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