BRIEF ON THE COMPETITION LAW OF BOTSWANA by

BRIEF ON THE COMPETITION LAW OF BOTSWANA by Thula Kaira - CEO Presentation to the Civil Aviation Authority of Botswana Gaborone, 15 August 2012

PRESENTATION OUTLINE 1. Introduction 2. Rationale of Competition Policy/Law 3. Expectations from the Law 4. Conclusions

1. INTRODUCTION The Policy preceded by an Economic Mapping Survey that noted levels of unemployment, increasing The Government of dominance of Botswana through its foreign firms in Cabinet adopted the National Competition Policy Botswana’s economy for Botswana in July 2005

1. INTRODUCTION cont’d The EMS also highlighted: 1. The need to safeguard and promote the growth and development of citizen-owned SMEs; and 2. Other Govt policy initiatives such as the diversification of the economy

1. INTRODUCTION cont’d Arising from the Policy, the Government through its National Assembly/ Parliament enacted the Competition Act in 2009 whose objectives in its preamble are to: Establish the Competition Authority Outline its mandate Regulate competition in the economy

1. INTRODUCTION cont’d THE COMPETITION AUTHORITY IS A Govt Agency Guided By Other overarching National Policies Accountable to Govt through the Minister

ELEMENTS OF THE COMPETITION ACT OF BOTSWANA ABUSE OF CARTELS: VERTICAL AGREEMENTS: - Resale Price Maintenance - Price-Fixing - Bid-Rigging/ Collusion - Market/ Customer Allocation DOMINANCE : - Excessive Pricing - Predatory Pricing - Territorial Restraints - Tied Selling MERGERS Acquisitions -Takeovers Amalgamations

2. RATIONALE FOR COMPETITION LAW • Competition law controls selfish business gains and consumer exploitation and strives to facilitate broad-based wealth creation by ensuring and provoking open and fair markets e. g by, inter alia, questioning & scrutinizing market agreements, and reviewing commercial & administrative barriers to domestic trade (just as trade law tries to do the same in intl trade)

RATIONALE cont’d Markets are susceptible to be captured by greedy business entrepreneurs to the detriment of other possible beneficiaries and hence the need for a transparent control system

UN SET of Principles & Rules on Competition … States should, at the national level or through regional groupings, adopt, improve and effectively enforce appropriate legislation and implementing judicial and administrative procedures for the control of restrictive business practices, including those of transnational corporations… • … States, in their control of restrictive business practices, should ensure treatment of enterprises which is fair, equitable, on the same basis to all enterprises, and in accordance with established procedures of law. The laws and regulations should be publicly and readily available

3. EXPECTATIONS FROM THE LAW § Creating a ‘fair’ business climate can be no task for one Govt agency as various agents have been established to play their expert part § Definitions of ‘unfair competition’ are varied in the court of public opinion § As the competition law is in its infancy, there is need to identify and maintain a support base for this highly law, to include: 11

Policy Makers/ Politicians Big Business Technocrats Sector Regulators The Press CSOs/ Academia Consumers SMEs 12

3. EXPECTATIONS…cont’d § The Act requires the CA to ensure most of its decisions lead to: üLower prices, higher quality or greater choice for consumers üPromotion or maintenance of efficient production, distribution or provision of goods & services üAdvancing the strategic or national interest of Botswana in a particular economic area 13

3. EXPECTATIONS… cont’d üProvide social-benefits which outweigh the effects on competition; üTake into account citizen empowerment initiatives of Government; üFurther other national development programs § To achieve these public interests, the Authority engages as wide a range of stakeholders as possible before decisions are taken. 14

4. CONCLUSIONS § § § The National Competition Policy addresses all public bodies to embrace rules and principles of competition in their decision making/acts which affect trade & commerce As part of the public service delivery system of Govt, there is need for regulators to find and focus on common ground than fortify the Silos We look forward to learning from the enormous experiences of CAAB 15

KE A LEBOGA… FOR FURTHER INFORMATION: Thula Kaira - CEO Competition Authority Plot 50664, Fairgrounds Office Park Private Bag 00101 Gaborone, BOTSWANA Tel: +267 393 4278 Fax: +267 312 1013 Email: Thula. Kaira@competitionauthority. co. bw Thulasonikaira@yahoo. com FACEBOOK: Competition Authority – Botswana Twitter: Competition. Bots