Vusumuzi Dube
Judith Phiri, Business Reporter
THE Comesa Competition Commission has said businesses should make use of digital platforms to access the export markets in the African Continental Free Trade Area (AfCFTA).
AfCFTA is an ambitious undertaking that brings together 1,3 billion people in 55 African countries to create the world’s largest free trade area as measured by the number of participating member States.
On final conclusion and implementation, its objective is the creation of an integrated market for the trade in goods and services and the free movement of people and capital.
Responding to questions from the Sunday News, Comesa Competition Commission director and chief executive officer (CEO), Dr Willard Mwemba said the utilisation of technology would undoubtedly enhance competitiveness for Zimbabwean businesses in that it significantly reduces the cost of production.
The Comesa Competition Commission is a regional body with a mandate to promote competition within the Common Market through monitoring and investigating anti-competitive practices.
“The low cost of production makes the products cheaper and competitive in the local market against imports and export markets.
Businesses that use advanced technologies produce high-quality products which can compete in the AfCFTA market. Markets are now globalised, hence businesses can make use of digital platforms to access the export markets in the AfCFTA as well,” he said.
Dr Mwemba said the regulation of competition in the Comesa region was one way to enhance economic integration as it helps to allow the free flow of products across borders, create a conducive environment for investment.
He said Comesa has a huge trade potential of up to US$101.2 billion, according to studies done by the Comesa Secretariate in 2019.
“The value of Intra-Comesa total exports increased by 28 percent from US$10 billion in 2020 to US$13 billion in 2021. Key exports include manufactures, food, ores and metals, and agricultural products.
Intra-Comesa trade however, has remained below 10 percent of total trade due to structural factors. There are several barriers that affect trade in African countries in general and the Common Market commonly known as Non-Tariff Barriers (NTB),” he added.
Among some of the barriers, Dr Mwemba said these include anti-competitive behaviour by firms in the Common Market, slow adoption and enactment of competition and consumer protection laws and institutions.
As well as no harmonised laws thus creating conflict in application of the laws across borders, and this is further exacerbated by the multiplicity of membership in Regional Economic Communities (RECs).
Other factors include multiple membership in RECs, high levels of poverty, environmental and climate change issues and dumping and safeguards measures, among others.
In terms of their collaboration with Zimbabwe’s Competition Tariffs Commission (CTC), he said the two institutions have a working Memorandum of Understanding signed in 2016.
“The Comesa Competition Commission collaborates with the CTC on all its merger examinations and investigations of anti-competitive practices that involve or have an effect in Zimbabwe.”
Dr Mwemba said going forward together with the CTC they will cooperate and collaborate in the fight against all anti-competitive practices.
He urged the national competition authority (CTC) to effectively enforce regulations in the market through investigations and remedy anti-competitive practices.
Online Reporter