The Competition Authority and the NBFIRA pave way for cooperation

The Competition Authority continues to forge bilateral cooperation with sector regulators in an effort to create a culture of competition and compliance with Botswana’s competition law and policy. On December 6th, 2012, the CA met with the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) with the sole objective of understanding each other’s role and mandate as they pave the way for formalised cooperation in the form of a memorandum of understanding.

NBFIRA regulates and supervises 23 types of non-bank financial institutions such as the insurance industry, pension funds and the Botswana Stock Exchange, and will in future include medical aid schemes and pawn shops under its ambit. Giving an overview, the Deputy Chief Executive Officer of NBFIRA, Mr Melville Brown, said the market being regulated changes rapidly and there is always need to adjust.

He outlined some of their objectives as to ensure high standards of business conduct, stability in the financial system as well as reduction and deterrence of financial crime. Mr Brown said at a micro level they strive for consumer protection, educating consumers so that they make informed decisions. For his part the Chief Executive Officer of the Competition Authority Mr Thula Kaira said the enforcement of the Competition Act is not the domain of the Competition Authority alone.

He said other sector regulators and other stakeholders have to ensure that the objectives of the Government are met through the creation of a business friendly environment that encourages competition and efficient use of resources. This as intentioned by Botswana’s competition policy and legal frameworks, will promote investment and innovation, broaden choices for consumers, and raise the quality of goods and services produced. Mr Kaira quoted American President Herbert Hoover who said “competition is not only the basis of protection of the consumer, but is the incentive to progress”.