Consumers in Uganda have nowhere to legally turn to even in the face of excessive exploitation, thanks to the absence of a competition law which trade analysts say is important in shielding the unsuspecting population from unduly being taken advantage of.

Despite the private sector persistent call for the legislation, considering its importance in regulating unfair trade practices, the government does not seem to take heed as the proposed competition law continues to gather dust between the ministries of trade corridor and the cabinet shelf.

To safeguard the interest of the consumers against market distortions by selfish, profit-driven organisations and individuals, a cross section of trade analysts and regional Non-Governmental Organisations advocating for fair trade wants to see a formation of a regional authority that would regulate unfair business practices.

In training workshop recently organised by SEATINI Uganda in partnership with CUTS and with support from Trade mark East Africa (TMA), experts on competition related matters said with the growth of cross-border trade, it is prudent to establish a regional authority that will regulate inevitable unfair trade tendencies.

“Due to anticompetitive practices in the region, the EAC might be prone to restrictive business practices. This is because regional integration has ushered in regional and international players with some experience in violating competition laws in their areas of origin,” Mr Cornelius Dube, an expert on competition and related laws said during the training.

He continued: “The cut-throat competition in the breweries, cement, banking, telecommunications and airlines sectors might have ushered in significant anticompetitive behaviour. And so the region desperately needs a cadre of competition champions to raise the ante on the need for the implementation of the EAC Competition Act 2006.”

The Southern and Eastern African Trade, Information and Negotiations Institute (SEATINI), chief executive officer, Amb Nathan Irumba, said although he is not opposed to the idea of the authority, he warned that It should be strong enough not to yield to undue political and commercial pressure.

Mr Dan Marlone, a consumer activist, said the authority is long overdue and it should be modeled around guarding the interests of the consumers above anything else.

The ministry of trade public relation officer, Ms Hadijah Nakakande, said yesterday that bill (proposed law) is not being delayed deliberately. She said: “This is also important to us; the law, if eventually it is passed by parliament, will regulate uncompetitive tendencies and market distortions.”

Why a Regional Competition Authority?

It further emerged in the workshop that national competition laws lack the adequacy and the necessary jurisdiction of dealing with anti-competitive practices of foreign companies and in such situation the authority would come in handy.

Also, imports affect domestic competition yet importers cannot be adequately regulated by the national competition authority adequately

Currently, only Kenya and Tanzania have significant level of experience in handling competition issues

Burundi and Rwanda recently adopted competition laws and are yet to fully implement them. Uganda is yet to adopt a competition law

In 2004, a draft competition Bill for Uganda was developed (Uganda’s Competition Bill 2004), with a view to promote fair competition in the local market.

After three years, the Bill was reviewed. However, its enactment stalled due to the absence of a competition policy.

In 2009, a process commenced to develop the Uganda Competition policy which was in 2014, adopted by the cabinet.

The policy establishes a competition unit in the Ministry of Trade, Industry and Cooperatives and provides for the submission of the draft law which will establish the Competition Commission.

The development and subsequently, implementation of these legal frameworks will pave way for the implementation of the EAC Competition Act 2006.

The Act aims to create the sort of environment that protects and promotes free and fair competition while ensuring a wider consumer choice.

Source: All Africa

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.