7Update
EnewsLetter Vol. IV
Project
Progress
Ongoing
Activities
One of the major responsibilities of the country partners in the 7Up3
project countries, (Botswana, Ethiopia, Malawi, Mauritius, Mozambique,
Namibia and Uganda), is to assess the level of awareness among select
stakeholder groups on competition issues, for the purpose of designing
advocacy and capacity building strategies.
Perceptions surveys are, therefore, currently being carried out in five
out of the seven project countries (except Namibia and Mozambique).
Namibia would start the surveys in early January, while in Mozambique,
the project has only begun to gather steam, with the PCP draft readied
by the country partner.
Three stakeholder groups of, i.e., consumer representatives, government/regulatory
authority representatives and the business community are targeted for
the perception surveys. The outcomes from these surveys would be analysed
and incorporated in a detailed ‘Country Research Report’ on competition
policy and law, and is expected to be ready by January 2006. The research
reports, once prepared, would have their findings discussed with a representative
group of national stakeholders from the project countries.
Specific
Project Outcomes
One of the recommendations that had emerged from the first round of
national stakeholder meetings (NRG meetings), was to undertake sector-specific
studies in the project countries to assess the level of competition
in specific sectors. In order to initiate this process, the Project
Coordination and Management Unit (PCMU) of the 7Up3 project asked the
country partner to develop briefing papers on ‘Competition in Select
Agricultural Produce Sector’. Some of the papers on specific agricultural
products included: tobacco in Malawi, food grains in Ethiopia and sugar
in Mauritius.
CUTS has prepared a policy brief on ‘Competition in the Agricultural
Produce Sector in Developing Countries’ by integrating inputs from these
papers, including those from the other developing countries in Africa
and Asia. The brief was discussed shortly. The Institute for Consumer
Protection (ICP) the advocacy partner from Mauritius, has prepared a
series of ‘policy briefs’ to sensitise various stakeholders, especially
the policy-makers, on the relevance of a functional competition regime
in the present economic order of Mauritius. The following issues have
been covered in these briefs:
-
Competition
Policy and Poverty Reduction;
-
Competition
and Consumer protection: A Hybrid Approach;
-
Should
the Competition Act be Reviewed Even Before Its Implementation?
And
-
Regulatory
Law: Need for Streamlining and Accountability
News
clippings, stories, articles on competition and regulatory issues of
interest to the region are being regularly posted to the e-discussion
group – the 7Up3Forum. The current membership base of the 7Up3 Forum
is 220, and is growing.
Project
Outreach and Networking
Representatives from the PCMU of the 7Up3 project participated in the
Fifth Review Conference of the UN on Competition Policy held at Antalya,
Turkey from November 14-18, 2005. The Conference was utilised by the
representatives, among other purposes, to spread awareness among the
international community (represented by delegates from over 70 countries
and various experts), about the 7Up3 project and its objectives.
The participants appreciated CUTS strategy and its efforts of working
with the civil society on the vital issue of competition policy and
law, especially in the project countries, where there has been some
movement on the issue. Discussions were held with dignitaries from Ethiopia,
Malawi, Mozambique and Namibia on the sidelines of the conference. All
the dignitaries met (who included senior government officials from the
Ministries dealing with competition policy and law, competition authorities,
etc.) were impressed with CUTS capabilities on the subject, and assured
assistance in implementing the project. Botswana, Mauritius and Uganda
were not represented in the meet.
News from
project countries………
The
following table provides a glance at some important news from the project
countries, pertaining and related to, competition and regulatory issues.
| COUNTRY
|
NEWS
|
| BOTSWANA
 |
Dangers
from Poisonous Toys
Children’s toys in Botswana have been found to contain large quantities
of toxic substances, like lead. These toxic substances are attributed
with adverse effects. Effects that severely impinge upon health.
The government is sitting idle on the issue, and is blaming the
lack of testing infrastructure for the prevalence of such toys
in the market.
More… |
Domestic
Gas Users Still Unhappy
Liquefied Petroleum Gas (LPG) users in the capital are still complaining
about the unfair practice of various dealers of supplying half-
empty gas cylinders. The government has tried to address many
such cases, while the remaining have been resolved by mutual understanding
between the dealers and the users.
More… |
| Privatisation
the Catalyst
Speaking during a conference organised by the privatisation agency
in the country, the Assistant Finance and Development Planning
Minister announced that privatisation would lead to enhanced efficiency
and a competitive market in the country. He observed that the
government was committed to promoting privatisation, and ensuring
a greater participation by the private sector in the country’s
economic development.
More… |
| ETHIOPIA
 |
Tight
State Control over Advertising
Although private businesses have come into being for more than
a decade and a half in Ethiopia, the advertising business is totally
under the control of the government. Advertising agencies in both
the print and the electronic media are state-owned, and have often
been criticised of producing poor quality advertisements.
More… |
| India-Ethiopia
Private Sectors come Together
The Indian Embassy in Addis has facilitated an India Business
Forum (IBF), comprising of young professional and representatives
from Indian business houses, and private sector representatives
from Ethiopia. The IBF is expected to provide a platform for partnerships
between Indian and Ethiopian businesses and to catalyse private
sector development through accelerated investments.
More… |
Quality
Coffee from South Soon
Coffee growers from the southern parts of the country would be
entering the Ethiopian coffee market with greater zeal in the
forthcoming production year and posing stiff competition to the
other dominant players, with better quality coffee. This was the
assurance given by more than 500 farmers and representatives of
coffee processors who underwent technical orientation recently.
More… |
| MALAWI
 |
Foreigners
Operating Illegal Businesses
There is an agreement between the government and civil society
on the issue of the rising number of illegal businesses operated
by foreigners in the country. Both have come down heavily on the
licensing procedure that has various loopholes, which needs to
be addressed, to resolve this malady.
More… |
| Ease
in Movement of Products
Malawi is all set to sign a bilateral agreement with Mozambique
that would ease the movements of certain products across the border,
duty free. This move comes in response to demands by Malawi’s
private sector, which says high duty rates in Mozambique discourage
trade between the countries.
More… |
Tea
Growers Learn from Kenya
Growers have appealed to the government to help them develop partnerships
with the private tea companies, in order to reap sufficient benefits
from the market. Malawi has the potential of becoming the leader
in tea production, given the fact, that cost of production here
is three times less than in Kenya, the present leader in Africa.
More…
|
| MAURITIUS
 |
The
Milk of Contention
The Government’s decision to reduce the profitability on milk
to 14 percent should bring back smiles to consumers. There is
however, apprehension that this might lead to a situation, where
small manufacturers are sifted out, and the market remains dominated
by only two dominant players. Imported milk and milk products
from India, might provide some relief.
More… |
| Consumer
Policy Being Readied
The Mauritian Government has invited the civil society as one
of the stakeholders, to actively participate in the exercise for
drafting a consumer policy framework for the country. Civil society
organisations have suggested, that the planned policy be aligned
with the UN Guidelines on Consumer Protection.
More… |
| Regulating
Electrical Houseware
The government has decided to adopt international standards for
certain electrical devices, in order to ensure the quality of
these products. A regulation is also on the cards that would make
it mandatory to have high quality electrical devices installed
in all homes.
More… |
| MOZAMBIQUE
 |
The
Price of Sugar
Breweries and soft drink manufacturers in Mozambique, the biggest
users of sugar, are continuing to import the commodity, as sugar
produced locally is more expensive. By doing so, the concerned
industries are trying to pressurise the local manufacturers to
lower the price of sugar.
More… |
Cashew
Crushed to its Death
Once the leading cashew producer in the world, the industry’s
survival in Mozambique is at stake today. Observers consider this
to be the outcome of an adherence to inappropriate policies prescribed
by the World Bank (WB). The liberalisation of the cashew industry
has affected the farmers for the worst, while benefiting only
a handful of traders.
|
| Illegal
Fishing Wreaks Havoc
It has been reported that, a few shipping boats operate illegally
in the waters of Mozambique. Most of them are Chinese. Recently,
one such Chinese boat was caught with an illegal catch of around
four tones of fish. Such illegal fishing frenzies badly hurt the
country’s economic and ecological resources.
More… |
| NAMIBIA
 |
Need
for Regional Competition Policy
The Southern African Customs Union (SACU) has been called to draft
a regional competition policy. Admitting the fact that domestic
laws have proved ineffective in curbing cross-border competition
concerns, experts have demanded a regional approach to deal with
competition concerns.
More… |
Competition
Act to Serve Business Interests
Small and Medium Entrepreneurs (SMEs), representatives of trade
unions and financial institutions have together raised concerns
about big foreign companies pushing the local ones out of business,
through alleged unfair competition. The country’s Ministry of
Trade and Industry has been urged to speed up the implementation
of the Competition Act, and the other relevant legislation to
protect the interest of local businesses.
|
Business
Forum on the Anvil
The Ministry of Trade and Industry is planning a forum constituting
private and public institutions, to act as a platform for government
and other stakeholders for discussing relevant issues. This forum
would have consultative and advisory functions, and would meet
periodically to discuss trade and investment related topics.
More… |
| UGANDA
 |
Facelift
for the Coffee Sector
The Ugandan coffee sector is poised for a facelift that would
enhance both the level of production and the quality of the product.
A system of disseminating market information to small-scale traders
and micro-entrepreneurs is being put into place. Such steps are
expected to help counter the decline in coffee production in the
country.
More… |
| Uganda
Drops in Global Competitiveness
Uganda has dropped eight places in global competitiveness rankings
of 2005-06 released by the World Economic Forum. However, it has
performed better on account of the ‘macro economic environment’
in the country. By highlighting the strengths and weaknesses of
an economy, the ‘competitiveness rankings’ offer an important
tool for formulating economic policies and institutional reforms.
More… |
Commercial
Laws Set for Public Scrutiny
The Uganda Law Reform Commission (ULRC) is taking out several
laws, including the country’s competition law for public consultations
and recommendations. The debate on these laws is expected to take
some time, before they are finalised.
More… |
| ‘Quality
Mark’ good for sales
Uganda has the lowest number of products certified by its National
Bureau of Standards (UNBS). There are also complains that some
companies use the quality mark illegally. The Bureau has called
on more and more companies to get the ‘quality mark’, which would
help them penentrate international markets, and reap substantial
benefits.
More…
|
| REGIONAL
NEWS |
Common
Textile Policy Mooted for EAC
The member states of the East African Community (EAC) are in consultation
for a common textile policy. This policy is expected to develop
the local textile industry in the three countries of Uganda, Kenya
and Tanzania, and reduce dependence on cheap imports.
More… |
Energy
to Boost Investment and Growth
Member countries of the SADC are rich in natural resources,
which, if properly utilised, could help generate enough power
(thermal and hydro) to meet the growing demands for this ‘scarce’
resource. Given the integration of the SADC to the international
economic system, the demand for power has to be urgently addressed,
to facilitate economic growth and development in the region.
More…
|
SADC
Investment Programme
The main objectives of this EU-SADC Investment Programme are to
promote investment in the region and foster regional cooperation.
Grants are available for promoting businesses in selected sectors,
in any of the SADC countries or the region.
More…
|
| |
|
