Strengthening Constituencies for Effective Competition Regime in The Gambia

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Strengthening Constituencies for Effective
Competition Regime in The Gambia
Key Research Findings and Key Issues:
Omar Ousman Jobe
(Policy & Budget Analyst, Pro-PAG
National Reference Group Meeting (NRG II)
Seaview Hotel, 30th October 2009
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Garba Jahumpa Road, Bakau, K.S.M.D. The Gambia.
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Tel: (220) 494338 Fax: (220) 494219
Emerging Issues for Discussion
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Garba Jahumpa Road, Bakau, K.S.M.D. The Gambia.
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Tel: (220) 494338 Fax: (220) 494219
1. Progress made towards Operationalising
the Competition Laws
• Despite the adoption of the law, its
implementation is taking long due to human,
financial and technical constraints.
• Insufficient funding of regulatory agencies and
regulatory activities
• Absence of consumer awareness and consumer
groups to contribute to the regulatory process
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Garba Jahumpa Road, Bakau, K.S.M.D. The Gambia.
*
Tel: (220) 494338 Fax: (220) 494219
2. Investigation of Competition abuses at all levels
• Firms taking advantage of the non-existence of a
Telecoms Act in the industry to engage in anticompetitive tendencies in the Gambian economy.
• Vertical agreements between importers and distributors
have been observed. The consumer goods market for
rice, cooking oil and sugar gives clear example of this
kind of practice.
• Tied-selling is common; e.g. a wholesaler interested in
sugar has to buy rice on credit from the importers. That
would also be the condition for accessing certain goods
on credit basis whilst paying for others upfront.
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3. Interface between competition and sector
regulation
 A framework of cooperation between the Competition
Commission and the other Regulatory Authority on
how to jointly exercise their mandate of ensuring fair
competition in the regulated sectors is missing.
 Sector regulators need to be shielded from undue
interference by the policy makers, lobby groups,
political clients and other actors driven by their
vested interests
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Garba Jahumpa Road, Bakau, K.S.M.D. The Gambia.
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Tel: (220) 494338 Fax: (220) 494219
4. Perception Analysis
 A general lack of awareness of existence of competition
laws among respondents from the business sector in The
Gambia. The existence of regulatory authorities is
however generally known.
• General perception that competition issues are not
understood in the economy, where lack of advertising is
cited as a contributory factor.
• Competition issues are rarely reported in the media due
to the lack of awareness of competition issues by
journalists.
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5. Competition Issues in the Agriculture Sector
• In the commodity sectors of rice, onion, Irish
potatoes and flour, there exists a series of
collusive agreement in the selling price. The
main importers concur to fix prices, thus leading
to the hike in retail price in the shops.
• Monopolisation of the groundnut processing
facilities and exportation giving rise to
anticompetitive practices in the groundnut sector.
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6. Monopoly Situations:
• The existence of such a monopoly which is poorly
run is by nature anti-competitive. In the absence of
alternatives, the consumers may not be getting the
best value for their money.
• All the GSM operators in the country namely,
Africell, Comium, and Qcell are obliged to use the
GAMTEL International Gateway for both voice and
data.
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Garba Jahumpa Road, Bakau, K.S.M.D. The Gambia.
*
Tel: (220) 494338 Fax: (220) 494219
Monopoly Situations:
• The international revenue flowing from the
International Gateway is like a lifeline for GAMTEL to
subsidize local calls; otherwise it would be difficult for
GAMTEL to cope and to continue providing fixed
telephone services.
• The refusal by the Department of State for
Communication and Information Technology
(DOSCIT) to grant licenses to interested parties to have
their own TV stations is undoubtedly restricting
competition.
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Transport and Communications
• Ferry Services is not open to competition.
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Garba Jahumpa Road, Bakau, K.S.M.D. The Gambia.
*
Tel: (220) 494338 Fax: (220) 494219
THANK YOU
FOR YOUR
ATTENTION ! !
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Garba Jahumpa Road, Bakau, K.S.M.D. The Gambia.
*
Tel: (220) 494338 Fax: (220) 494219
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