Convincing Policy Makers and Garnering
Greater Support for Competition Reforms
CREW Project
Inception Meeting
13-14 March 2013
ITC Rajputana, Jaipur
India
Chilufya Sampa
Zambia
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Competition & Consumer Protection Commission
PRESENTATION OUTLINE
• INTRODUCTION
• COMPETITION AND POLICY MAKERS
• MODES OF ENGAGING POLICY MAKERS
• OTHER STAKEHOLDERS AND THEIR
ROLE
• CONCLUSION
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Competition & Consumer Protection Commission
INTRODUCTION
• COMPETITION IS A NEW CONCEPT IN ZAMBIA
AND IN MOST DEVELPING COUNTRIES
• THE FORM OF ECONOMIC SYSTEM WAS
SOCIALISTIC IN NATURE AND NOT MARKET
DRIVEN
• GOVERNMENT INVOLVEMENT IN THE MARKET
WAS HIGH
• 1991 BECOME APPARENT THAT ECONOMIC
SYSTEM HAD TO CHANGE TO FREE MARKET
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Competition & Consumer Protection Commission
COMPETITION AND POLICY MAKERS
• THERE WAS NEED TO CHANGE THE STRUCTURE OF THE
ECONOMY
• POLICY MAKERS HAD BEEN TRAINED IN DIFFERENT TYPE OF
ECONOMIC SYSTEM - A CULTURE OF COMPETITION DID NOT
EXIST
• EVEN THOUGH THE POLICIES WERE FREE MARKET ECONOMY –
MIND SET OF THE POLICY MAKER WAS NOT - THERE WAS NEED
TO CHANGE THE MIND SET
•
•
•
•
•
•
•
CCPC FOUND ITSELF IN CONFLICT WITH POLICY MAKER
E.G. ZAMTEL ON BOARD OF REGULATOR,
PROCUREMENT TAILORED TO SPECIFIC PARTIES,
PRICE FIXING IN BUS FARES SANCTIONED BY GOVT AGENCY
PROHIBITIVE LICENSE FEES IN INTERNATIONAL GATEWAY
RESTRICTIONS ON NUMBER OF PLAYERS IN CERTAIN MARKETS
RESTRICTIONS OF PLAYERS BASED ON NATIONALITY
Competition & Consumer Protection Commission
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MODES OF ENGAGING POLICY MAKERS
• ADVOCACY
• PARLIAMENT – MAKE PRESENTATIONS TO PARLIAMENTARY
COMMITTEES – SOMETIMES IT HAS NOTHING TO DO WITH
COMPETITION NEVER THE LESS DO A GOOD JOB
• ANNUAL REPORTS – UP TO DATE AND PRESENTED TO PARLIAMENT
• WORKSHOP FOR PARLIAMENTARIANS – THEY WILL NOT ALL
ATTEND BUT YOU SHALL CAPTURE A GOOD NUMBER
• IDEA IS TO RELATE TO THE PARLIAMENTARIANS PROBLEMS
• MONOPOLISTIC BUS FARES TO MONGU
• POSSIBLE CARTEL BEHAVIOUR IN INFRASTRUCTURE
DEVELOPMENT IN CONSTITUENCIES
• PARLIAMENT RADIO – PROGRAMMES WITH PARLIAMENT RADIO
• COMMENTS ON TOPICAL ISSUES – ADVISORY OPINION ON TOPIC
ISSUES TO VICE PRESIDENT EVERY MONDAY
• SHORTAGE OF MAIZE MEAL IN THE COUNTRY – CARTEL
BEHAVIOUR – RESTRICTED PRODUCTION
• FUEL SHORTAGE – OBTAINED COURT WARRANT TO INSPECT
FUEL FACILITIES AT OIL MARKETING COMPANIES
• AIM IS TO SHOW RELEVANCE OF COMPETITIOIN IN EVERY DAY
ECONOMIC ACTIVITY
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Competition & Consumer Protection Commission
MODES OF ENGAGING POLICY MAKERS
• ENFORCEMENT
• TO SHOW THAT THE COMPETITION IS REAL THERE IS A NEED TO
ENFORCE THE LAW
• ZAMBIAN BREWERIES V BETTERNOW FAMILY LIMITED (ABUSE
CASE) USD 2000
• MERCURY EXPRESS ( MERGER CASE FAILURE TO NOTIFY) USD 5000
• CONTINENTAL MERGER WITH IMPACT (MERGER CASE REJECTED)
• CAR GARAGES ( CARTEL CASE ) ON APPEAL
• PUMA ENERGY /DANA HOLDING (MERGER CONDITION
ABROGATION) USD 10 MILLION
• TAMBA CHICKS/HYBRID MERGER REJECTED
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Competition & Consumer Protection Commission
MODES OF ENGAGING POLICY MAKERS
•
RELEVANCE TO NATIONAL AGENDA
• COME UP WITH A NATIONAL POLICY ON COMPETITION
• RECOGNISED THAT MANY GOVERNMENT MINISTRIES, DEPARTMENTS
AND AGENCIES WERE NOT AWARE OF COMPETITION PRINCIPLES
•
SHOW HOW COMPETITION CAN REDUCE POVERTY – PARTICIPATE IN
NATIONAL AGENDA TO COMBAT POVERTY AND HAVE A CHAPTER ON
COMPETITION E.G. SHOW HOW MUCH MONEY IS LOST THROUGH CARTELS
IN FERTILISER … CCPC INTERVENTION HAS RESULTED IN GOVERNMENT TO
BE MORE INCLUSIVE IN FERTILISER PROCUREMENT
•
SHOW HOW COMPETITION CAN INCREASE JOBS OR CAN CREATE JOBS E.G.
TAMBA CHICKS HYBRID MERGER TRANSACTION RESULTED IN AN
AGGRESSIVE COMPETITIVE MARKET AND NOW HAS SIX COMPANIES FROM
TWO
•
MARKET STUDIES – CCPC MARKET STUDY IN SUGAR AND VITAMIN A
FORTIFICATION – NTB HAS RESULTED IN ZAMBIAN CONSUMERS PAYING
MORE FOR SUGAR THAN ELSEWHERE. ONE CAN GAIN POLITICAL MILAGE
WITH SUCH INFORMATION
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Competition & Consumer Protection Commission
CONCLUSION
• IT IS NOT AN EASY TASK TO GARNER SUPPORT FOR COMPETITION
REFORM
• YOU NEED TO SHOW THE RELEVANCE OF COMPETITION TO THE
CRITICAL NATIONAL AGENDA
• SUGAR ISSUE – ACTION AID SAY ZAMBIA SUGAR IS ADVOIDING TAX,
CCPC SAY IT’S A COMPETITION ISSUE – REMOVE THE NTB AND
MARKET PRICES WILL COME DOWN
• YOU NEED TO SHOW THAT COMPETITION LAW CAN BE ENFORCED
• PUMA FINE IS A GOOD EXAMPLE
• YOU NEED TO SHOW JOB CREATION AND POVERTY REDUCTION
• DIFFICULT TO SHOW DIRECT BENEFITS IN MOST CASES BUT ALWAYS
REFER TO YOUR INVOLVEMENT IN EACH TRANSACTION
THE END
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Competition & Consumer Protection Commission