Policy needed to rid region of unfair trade practices

LOCAL manufacturers and researchers have called for a regional competition regulatory framework to be established to rid southern Africa of unfair trade practices being driven by large South African conglomerates.

Speaking at a presentation in Windhoek yesterday on competition policy in Namibia, Rehabeam Shilimela of the Namibian Economic Policy and Research Unit (Nepru) said the Southern African Customs Union (Sacu) should seriously consider setting up a competition policy. Shilimela said although Namibia had come up with a Competition Act and commission, more needed to be done.The Nepru researcher said unfair trade practices were cause for concern.Echoing Shilimela’s sentiments was Nepru director Dirk Hansohm.Hansohm said domestic policies and laws were good enough in articulating local issues, but were ineffective in dealing with cross-border trade practices.He urged countries within the Sacu grouping to implement a regional competition policy, saying it would go a long way towards protecting emerging entities threatened by unfair practices.”There is a need for regional collaboration in fighting unregulated competition which is threatening the survival of small economies.”South African conglomerates, dominant in southern Africa, have often come under fire for unfair competition and circumventing cross-border laws.For instance, Swaziland had to lodge a complaint with Sacu and later South Africa over unfair trade practices threatening the tiny kingdom’s fertiliser industry.Huge South African fertiliser entities allegedly engaged in under-pricing, totally pushing out Swazi companies from the domestic market.The complaint was not resolved, however, as there was no mechanism to deal with it on an international basis.Hennie Fourie, Chief Executive Officer of the Namibian Manufacturers Association (NMA), said Namibian manufacturers were often the victims of unfair trade practices by South African companies.Fourie said as long as there was no regional approach, local manufacturers would face reduced business and in some cases closure.The seminar examined ways of enhancing and developing competitive markets in East and southern African countries.It emerged that Namibia was one of the few countries in the region with a regulatory framework to ensure fair trade and competition.Shilimela said although Namibia had come up with a Competition Act and commission, more needed to be done.The Nepru researcher said unfair trade practices were cause for concern.Echoing Shilimela’s sentiments was Nepru director Dirk Hansohm.Hansohm said domestic policies and laws were good enough in articulating local issues, but were ineffective in dealing with cross-border trade practices.He urged countries within the Sacu grouping to implement a regional competition policy, saying it would go a long way towards protecting emerging entities threatened by unfair practices.”There is a need for regional collaboration in fighting unregulated competition which is threatening the survival of small economies.”South African conglomerates, dominant in southern Africa, have often come under fire for unfair competition and circumventing cross-border laws.For instance, Swaziland had to lodge a complaint with Sacu and later South Africa over unfair trade practices threatening the tiny kingdom’s fertiliser industry.Huge South African fertiliser entities allegedly engaged in under-pricing, totally pushing out Swazi companies from the domestic market.The complaint was not resolved, however, as there was no mechanism to deal with it on an international basis.Hennie Fourie, Chief Executive Officer of the Namibian Manufacturers Association (NMA), said Namibian manufacturers were often the victims of unfair trade practices by South African companies.Fourie said as long as there was no regional approach, local manufacturers would face reduced business and in some cases closure.The seminar examined ways of enhancing and developing competitive markets in East and southern African countries.It emerged that Namibia was one of the few countries in the region with a regulatory framework to ensure fair trade and competition.