Chronicle Editor
Leonard Ncube in Victoria Falls
AFRICAN countries should eliminate barriers to trade in order to promote creation of a common market, which is key in enhancing free movement of goods and services that will boost the region.
Common Market for Eastern and Southern Africa (Comesa) Competition Commission chief executive, Dr Willard Mwemba, said this at the recent judges training workshop organised by the Comesa Competition Commission for the Judicial Service Commission in Victoria Falls.
Through globalisation, he said countries are now integrated to a transportation and communication network where markets are closed and there is lack of competition, which leads to high prices and citizens crossing borders to buy basic goods from neighbouring countries.
A common market is a formal agreement where a group is formed among several countries that adopt a common external tariff and allow free trade and free movement of labour and capital among the members.
“There is no longer just a Zimbabwean market or Zambia market as countries are now integrated in the Common Market for Eastern and Southern Africa,” said Dr Mwemba.
“There is this desire and aspiration that we should create a common market free from obstacles.
The removal of public obstacles means that businesses in Zimbabwe, Kenya or any other country find it easy to move in and to other countries.
“The Comesa Treaty has created this ambition of eastern and southern Africa and it has recognised the effect of competition and it did state that member states agree to prohibit all practices that negate the free movement of goods and services.”
Dr Mwemba urged member states to address all bottlenecks that impede free movement of goods and services.
The Comesa Competition Commission, which has a mandate to review competition across borders, has a memorandum of understanding with the Competition and Tariff Commission of Zimbabwe to deal with issues of competition across borders, said Dr Mwemba.
Zimbabwe enacted the competition law in 1998 to become the second southern African country after Zambia, which enacted the law in 1994.
Without competition laws, Dr Mwemba said, there is a tendency to use unorthodox operations where big businesses drive away small players in order to remain alone in the market and end up exploiting consumers who are ordinary citizens.
This negates economic development hence competition needs constant Government attention, said Dr Mwemba.
He said competition law is indispensable in achieving Zimbabwe’s Vision 2030 hence there is a need for an effective judiciary on matters of economic development.
“Competition law is indispensable in market economies.
Usually, companies appear to have a profit motive and would do anything to undermine competition and eliminate others so that they exploit all the profit to themselves and in doing so, consumers are hurt, economies are hurt and businesses cannot grow because they are concentrated in the hands of a few,” he said.
President Mnangagwa has also warned cartels that manipulate the economy resulting in high prices of goods.
Open markets and competition in business results in better conditions for consumers as businesses compete on ideas and innovation, and produce goods and services at a lower cost that is transferred to lower prices for consumers, which is one of the aspirations of the Second Republic in its drive towards an upper middle-income society.
“With the opening up of markets, which Comesa member states have done, Zimbabwe included, we see a lot of companies opening up, better conditions for consumers, better prices as competition is playing an important part in regulating powerful and growing economies,” said Dr Mwemba.
“This reduces poverty and ultimately grows the economy where there is consumer spending and business striving economy.”
He said it was, therefore, critical for judges to be acquainted with competition law because their institution affects daily lives of citizens and governments.
— @ncubeleon
Bongani Ndlovu