11 Apr 2021

Competition and Consumer Authority (CCA) Director of Communications and Stakeholder Relations Mr Gobusamang Nkala  has said prices of food are determined by market forces and are not at the discretion of the authority. 

“The role of the CCA is to ensure that there is fair competition in the economy while at the same time protecting the rights of consumers,” he explained in an interview.

Following a public  outcry regarding recent price hikes in food products,  the Competition and Consumer Authority (CCA) of Botswana embarked on  price survey in Gaborone. 

He said the CCA had carried out the survey of the price of cooking oil in Gaborone chain stores due to public concerns that prices of the product had increased.

Mr Nkala pointed out that survey was very limited and it was meant to assist consumers to make a shopping decision in relation to the product.

He further noted that if the CCA determined that shops had increased prices way more than the additional two per cent vat, they would invoke Regulation 25 (2) of Statutory Instrument number 61 of 2020.

The regulation stipulates that where there is an increase in the cost of procurement or production of essential supplies, a trader shall not increase the price of procurement or production of essential supplies by more than the additional cost of procurement or production of such essential supplies.

Under the current food price hike particularly in Excella cooking oil and in relation to  regulation 25, Mr Nkala pointed out that the price hike had not emanated from the two percent Value added tax increase which came into effect on 1 April.

Based upon their findings, Mr Nkala said it was found that prices for in-house brands were comparatively lower than family brands where Excella Cooking Oil was found to be expensive at P52.65 at Pick n Pay while the same product was marked at P44.94 and P39.95 at Choppies and Spar respectively.

Based on this evidence, Mr Nkala added that more surveys would be carried out to determine why there was a price hike for imported goods in efforts to determine if such increases were merely efforts by retailers to maximise profits during limited trading hours or if they had any merit.

He further noted that the survey would determine if increases were reflective of the vat tax increase or if indeed customers were being overcharged.  Ends