Botswana Institute for Development Policy Analysis Monnane M. Monnane Research Fellow COMPETITION OVERVIEW: BOTSWANA

Introduction Competition Policy for Botswana Policies and Laws affecting competition in Botswana Nature of Competition in Botswana Survey Results

Competition Policy and Law for Botswana Objectives: –Enhance economic efficiency, promote consumer welfare, support economic growth and diversification –Prevent and redress anti competitive practices –Prevent and redress unfair practices adopted by firms against consumers and small businesses –Compliments other Government policies and laws

Some Positives (over and above objectives) Establishment of the Competition Authority Ensuring consistency with other Government Policies Consumer protection Public awareness and support for the Policy

Grey Areas Interface between the Competition authority and other sector specific Regulatory bodies –Recognition of sector regulators (BoB, BTA, BOTA etc) –All fall under the ambit of the competition law (Competition Authority)

Grey Areas continued –“In Sectors characterized by commercial activities, complex science, engineering and technology or having natural monopoly or other special elements the competition authority and sector specific regulators will collaborate and compliment each other” –Who are these? BoB, Non BA, BTA, Power, Water. BOTA. –No sector specific may fall under the AMBIT of the Competition Law.

Grey Areas continued Exemptions –Public Utilities :- Infrastructural public utilities such as land line provision. Privatisation? Encouraging Monopolies? PPPs?

2. Policies and Laws Affecting Competition PPDA Act – open competitive bidding – pro competition Telecoms Act- promotes competition among players. Trade Policy (SACU – Common external Tariff) Trade and Liquor Act (1993) – reserves some activities to citizens. SMMEs exemptions?

Nature of Competition in Botswana (Economic Mapping Study) Use market concentration as a measure. Contribution of Top 3 firms CR3Market Characteristic 0 -20Highly Competitive Competitive with significant market share Generally competitive (3 largest firms have dominant position) 60-80Concentrated – possible abuse t pwr Highly concentrated

Nature of Competition in Botswana (continued) IndustryCR Agric Manuf Hotels & R Constructio Finance Transport W/Trade

Survey Results Existence of Anticompatitive practices Effect on Consumers94.7 Most prevalent anti competitive practice Price Fixing Most affected SectorRetail Sector (motor) and Construction

THE END Thank you