EnewsLetter Vol.
1
Project Progress
CUTS Centre for Competition Investment and Economic
Regulation (CUTS C-CIER) recently embarked on a unique trilateral development
cooperation (TDC) initiative through a project entitled, ‘Capacity Building
on Competition Policy in Select Countries of Eastern and Southern Africa’.
Referred to as the 7Up3 Project, this initiative aims to utilise the
capability of CUTS in designing and implementing a multi-country project
on competition policy and law in seven developing countries of Eastern
and Southern Africa, namely: Botswana, Ethiopia, Malawi, Mauritius,
Mozambique, Namibia and Uganda, with assistance from the Norwegian Agency
for Development Cooperation (NORAD), Norway, and the Department for
International Development (DFID), UK.
The project encompasses the principles of TDC, where
a Southern ‘provider’ extends technical assistance to a Southern ‘recipient’
with assistance from a Northern ‘donor’.
The implementation strategy for this project is consistent
with earlier initiatives of CUTS on competition policy and law, involving
‘partnership’ with selected civil society organisations in each of the
project countries, and adopting a research based advocacy process to
execute project activities. For this purpose a leading research organisation
has been identified as the ‘research partner’, and a NGO/consumer association
as the ‘advocacy partner’ in each of the project countries.
A two-day meeting organised at Entebbe, Uganda marked
the official launch of the 7Up3 project. The occasion drew scholars
from other parts of Africa, experts on competition from various countries
around the globe, and representatives of competition authorities, in
addition to representatives from the project partner organisations.
Generic concepts of competition policy, and their
implications for developing countries, especially from the region were
discussed through presentations made in three sessions over a seminar
on the first day of the project. These sessions saw experts present
their views on: Competition Policy and Economic Development, Competition
Concerns in the region, and Competition and Regulation Interface.
On the second day Preliminary Country Papers (PCP)
prepared by the research partner were presented. The PCPs highlighted
the prevailing competition regime and regulatory framework in the project
countries, and stimulated interactions across the table.
In the workshop that followed, the
project coordination and management unit (PCMU) representatives from
CUTS International, project partners, project advisory committee members
and the development partners discussed the 7Up3 project implementation
structure, and tried to evolve a common understanding of the process
of executing the project.
The researchers partners have since
been involved with fine-tuning the PCP with comments and suggestions
received during the meeting. The advocacy partners on the other hand
have been busy trying to identify key stakeholder representatives to
constitute National Reference Groups (NRGs), and make arrangements for
the first round of national consultations.
In these national consultations,
i.e., NRG meetings, a group of diverse stakeholders would be sensitised
of the objectives and anticipated outcomes of the project. The PCP prepared
by the research partner would also be discussed with this group for
their comments, and to give the research outcome wider ownership nationally.
The NRG meetings are scheduled from end May 2005.
News from project countries………
| COUNTRY
|
NEWS
|
| BOTSWANA
 |
Consumer empowerment
needed
Consumer welfare and fair access to basic goods
and services are severely lacking in most African nations, mainly
due to the lack of comprehensive consumer protection policies
and laws. This was the observation of the delegates who participated
in a meeting organised jointly by the Botswana government and
the Regional Africa Office of Consumers International (CI-ROAF).
The Minister for Trade and Industry of Botswana expressd the government’s
plan of enacting a competition law soon to ensure consumer welfare
in the country. More… |
| Beef export monopoly
to continue
Farmers in Botswana have urged the government
to liberalise the sale of live animals and their products outside
the country for better returns. Botswana Meat Commission (BMC),
the government agency solely responsible for exportation of live
animals and their edible products has been observed to have monopolised
the trade in the country. More… |
| ETHIOPIA
 |
Ethiopia fears
business prospects in Djibouti
The govt. of Djibouti has introduced a Finance
Law that lays down strict requirements for insurance companies
to continue operating in Djibouti. This law discriminates between
national and foreign companies, an attitude that the government
has developed recently towards foreign businesses. This law and
similar legislations that are expected to follow soon would definitely
upset business prospect of neighbours like Ethiopia, which has
had a long history of trade ties with Djibouti. More… |
| Move to attract
foreign firms lauded
Events like the recently held ‘Trade Fair’ organized
by the Addis Ababa Chamber of Commerce (AACC), is expected to
enhance the extent of international trading in the country, thereby
leading to greater competition among the players in the market.
Companies representing 31 countries showcased their products in
the fair. More… |
| Need to improve
business environment in the country
At a recently held workshop on the implementation
of industrial zones at Addis Ababa, private investors complained
about lack of infrastructure and other problems, which made it
hard for them to expand, or even start production and services.
It emerged as recommendations that the government should improve
the social and physical infrastructure in the country and enhance
the regulatory regime to evolve a level-playing field for attracting
investors’ attention. More… |
| MALAWI
 |
Malawi scores
poorly in business climate
Malawi has scored poorly in the World Economic
Forum’s Global Competitiveness Report prepared for 102 countries,
in terms of prevailing business and macroeconomic climate there.
This has, however, not come as a surprise for the country’s business
community, who have been urging the government to make investment
incentives clear and transparent. Observers nevertheless are hopeful
and assert that the country needed to get rid off disincentives
like unreliable water and electricity supply, high transport cost
and policy on expatriates to improve its investment climate.
More… |
| Malawi digs its
heels over its tobacco industry
Malawi has made it clear that the country would
not ratify the WHO’s global convention, Framework Convention on
Tobacco Control. The country’s Agriculture Minister, Gwanda Chakuamba
expressed that tobacco contributed 70% of its exports and 15%
of the GDP. Under the circumstance, ratification of the convention
would jeopardise the livelihoods of over 2 million people who
depended on the cashcrop. More…
|
| Tobacco prices
– a national worry
Experts have warned that illegal cross-border
tarde in tobacco could become rampant, if its prices continue
to remain low in Malawi. Farmers would be forced to resort to
such practices to get fair returns. Further, continuing low prices
of the crop could even spell disaster for the share markets, as
tobacco is the highest forex earner for the economy. The government
should realise the situation and announce appropriate steps.
More…
|
| MAURITIUS
 |
Mauritius Strengthens
its Textile Industry
Mauritius launched ‘Enterprise Mauritius (EM)’,
to support its textile industry, which faces stiff competition
after the abolition of quotas under the Multi Fibre Agreement.
EM targets promotion of appropriate technology usage and aims
to stimulate exports to ward off competition China and Co. The
government has lareay geared up to counter the situation by setting
up a Textile Enterprise Support Team. More… |
| Mauritius Plans
to Become Duty-Free Island
Tourists in Mauritius would soon have much to
fill up their bags with, and not remain restricted to the beaches
of this paradise to get that envied ‘tan’ only. The government
of this island nation has embarked on a plan to make the island
‘duty-free’ and transform it into a ‘shoppers paradise’. This
project would be accompanied by incentives for local and foreign
businessmen to set up massive retail outlets here. More… |
| Competition Brews
up in Beer Market
The beer industry in Mauritius is ready for
a complete makeover, with the introduction of two new brands by
Universal Breweries. The company is all set to thwart the monopoly
status that Phoenix Beverages has been enjoying, and promises
to capture 25% of the market within the first year. Phoenix has
already prepared itself for the onslaught through its extensive
ad campaign, aimed at highlighting the issue of foreign ownership
of the new company. More… |
| MOZAMBIQUE
 |
Alleviation Depends
on Growth
Poverty alleviation through economic growth
was particularly dependent on the ability of Mozambiquan business
to compete in the international market. His was the opinion expressed
by the Minister of Industry and Trade, Antonio Fernando at the
opening ceremony of Mozambique Business Forum. He further observed
that the country needed to introduce appropriate trade and investment
policies and remove impediments, to facilitate the emergence of
a vibrant private sector. The challenge was to produce quality
goods at competitive prices to gain foothold in the international
market. More… |
| Mozambique Among
Investors’ Favourites in Africa
The World Bank’s Multilateral Investment Guarantee
Agency (MIGA) has noted a steady increase in investors’ interest
in Mozambique. The agency has ranked the country as its sixth
largest recipient, on account of assistance regarding various
projects in the manufacturing and infrastructure sectors. It is
believed that the industrial policy, and availability of cheap
labour has facilitatede enhanced investment here. More… |
| NAMIBIA
 |
Namibia and the
Textile Industry- Golden Fleece or Threadbare Hope?
Recet closure of a textile manufacturing unit
in Namibia has brought forth the kind of challenges that the textile
sector would face in the post-quota regime. Critics are apprehensive
of the industry being able to compete with players like China,
Indonesia and Pakistan. However, the government is confident of
being able to pull through, especially on account of the preferential
market access the country enjoys in US and EU in light of the
AGOA and the Cotonou Agreement respectively. More… |
| ECB Announces
6% Hike in Bulk Electricity Tariff
The Electricity Control Board (ECB) has announced
a 6% increase in the tariff of bulk electricity, approving an
application by NamPower, the national power utility of Namibia.
SADC has witnessed a growth in power demand in the recent past.
The government has called for a closer association between the
power generators and investors to raise the production level in
the country. More… |
| UGANDA
 |
Celtel Advocates
Fair Competition
Celtel’s Managing Director, Tim Bahrani, has
promised improved service delivery at cheap rates in the near
future in the country. The company has however, expressed resentment
over the government decision to impose (10%) tax exclusively on
mobile phones. More… |
| Electricity Body
Defends Self on Tariff Rise
The Electricity Regulation Authority defended
itself over power tariff hikes saying that it would help generate
revenue to improve capacity and cope up with power shortages,
among other reasons. More… |
| Launch of Simu
4 U Takes Rural Communication on New Level
Uganda Telecom Ltd. has launched Simu 4 U, a
public payphone service designed for low-income sections, and
remote habitations in the country. Rival phone companies are engaged
in cutthroat competition in the country, and constantly on the
lookout for innovative ideas to attract consumer. More… |
| Ugandan Business
Council Established in Dubai
The Ugandan Business Council was recently launched
in Dubai at a ceremony hosted by the Dubai Chamber of Commerce
and Industry. A move that is expected to further the mutual cooperation
between the two countries. Dubai is expected to help attract foreign
investments to Kampala, through its experience in organising diversified
trade exhibitions. More…
|
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