a tripartite report - Unctad
a tripartite report - Unctad
a tripartite report - Unctad
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ZAMBIA<br />
enforced. While it was acknowledged<br />
that domestic competition, enhanced by<br />
competition law and policy, would contribute<br />
positively to the growth of the national<br />
economy, the manufacturers feared that<br />
<br />
facilitated, thus hampering the development<br />
<br />
Weak Domestic Corporate Image: owing<br />
largely to the low level of public awareness<br />
of the Commission’s activities and/or<br />
interventions in key sectors of the economy.<br />
The experience gained by the Commission in enforcing<br />
the Competition and Fair Trading Act, 1994<br />
led to the revision of the legislation in order to<br />
101<br />
strengthen the enforcement of the country’s competition<br />
law. The exercise involved renowned international<br />
competition experts, and was undertaken<br />
in consultation with a number of other developed<br />
competition authorities, notably, the Bundeskartellamt<br />
of Germany, and the Federal Trade Commission<br />
of the United States of America.<br />
The shortcomings in the enforcement of Zambia’s<br />
competition law under the Competition and Fair<br />
Trading Act, 1994 was clearly stated by the then<br />
Minister of Commerce, Trade and Industry in his<br />
Ministerial Statement to the National Assembly of<br />
Zambia on the First Reading on 28 July 2010 of the<br />
Competition and Consumer Protection Bill 2010.<br />
The following in Box 5 are the main points of the<br />
Minister’s Statement:<br />
Box 5: Main Points of Ministerial Statement to Parliament on First Reading of the Competition<br />
and Consumer Protection Bill, 28 July 2010<br />
Background and Rationale for the Competition and Consumer Protection Bill<br />
Competition and consumer protection issues in Zambia have been addressed by the Competition and Fair Trading<br />
Act Cap. 417 which was enacted in April 1994. That Act, which shall be repealed with the passing of the Competition<br />
and Consumer Protection Bill had been found inadequate in addressing competition and consumer protection<br />
matters of enforcement and clarity in certain circumstances. The Ministry recognized that competition and<br />
consumer protection was not governed by any policy, which resulted in inconsistent enforcement of the law. With<br />
the approval of the Competition and Consumer Protection Policy by Cabinet and recognizing the need for more<br />
enforcement powers in order to protect our economy and the citizens of Zambia, the Ministry has proposed that<br />
the Competition and Fair Trading Act be repealed.<br />
In that connection, the Ministry proposed the Competition and Consumer Protection Bill which is a more comprehensive<br />
Bill addressing competition and consumer issues that are currently affecting our economy and consumers.<br />
The essence of the Bill is to provide for accountable and transparent enforcement provisions and a legal regime<br />
tions,<br />
and general anticompetitive or restrictive business practices; provide for the process which would not neces-<br />
<br />
enterprise entry; protect consumers from unscrupulous traders and manufacturers; and provide for a legal regime<br />
sumer<br />
legislation to international standards; (ii) strengthen the enforcement powers and penalties; (iii) enhancement<br />
of consumer protection provisions; (iv) revise the legal regime dealing with competition and consumer cases;<br />
and (v) regulatory interface with sector regulators.<br />
The reasons that necessitated the above mentioned changes were as follows:<br />
(a) Align the Competition and Consumer Legislation to International Standards<br />
The Competition and Fair Trading Act, Cap 417 of the Laws of Zambia was enacted in 1994 and had been enforced<br />
since 1997. During that period, a number of developments have occurred in areas of competition law and consumer<br />
protection. The developments include matters to strengthen secret business agreements (formal, informal,<br />
written or unwritten), i.e., cartel activities of persons engaged in business. Governments the world over have realized<br />
the great losses that are subjected to absolve in awarding contracts to businesses that collusively tender for<br />
bids or allocate markets to each other. Zambia is no exception to these kinds of vices that negate welfare gains.<br />
The United Nations Set of Principles and Rules on Competition which were adopted in 1980 by the United Na-<br />
inter alia, take appropriate<br />
steps at the national or regional levels to meet their commitment to the Set of Principles and Rules. Further, there<br />
ZAMBIA