24 Oct 2013

Competition Authority Botswana (CAB), in conjunction with the African Competition Forum (ACF) on Wednesday (October 23) started a two-day major research project workshop in Gaborone.

Speaking at the start of this conference, CAB chief executive officer, Mr Thula Kaira said the aim of the research conference was to consolidate data on three key cross-border market studies that were currently being undertaken in the industries of cement, poultry and sugar.

These studies were being undertaken in Botswana, Namibia, Kenya, South Africa, Tanzania and Zambia. Mr Kaira noted that while the rest of the countries did all the three studies, Botswana and Namibia were doing two market studies on cement and poultry.

The aim of the study was to ensure that the six months study was compiled into a final report which shall be presented to the main African Forum gathering in Mauritius before the end of November.

Mr Kaira further said since CAB was only two years old it hoped to learn much from its counterparts which had been in existence for up to 10 years, adding that it was pleasing to learn that the conference had attracted countries from east and southern Africa which are mostly major trading partners.

He noted that the three commodities were chosen because of their wide usage in the market particularly that some are from same or related companies in the regions. Mr Kaira also said consumers were sometimes interested in knowing why a certain commodity would be expensive in one country and elsewhere was cheaper within the region.

He observed that was such instances some factories ended up stopping production because they could not penetrate the market.  He therefore said the workshop should try and come up with some solutions to these challenges, which had become a hindrance to other players in the market.

Speaking at the same forum, Project Support Professor Simon Roberts who is also a lecturer at Wits University in South Africa said the idea to undertake such a research came from the six countries, noting that the outcome inform real market dynamics. He said at times some companies colluded and fix prices even though the people involved would be aware that doing so would be unlawful. ends