Robust Competition Bedrock for Innovation and Consumer Welfare

The Acting Minister of Investment, Trade and Industry says robust competition is the bedrock for product innovation, industrial growth, competitive prices, quality goods and services, consumer welfare and general expansion of markets. Hon. Biggie Butale said this when officially opening the National Competition Conference in Selebi-Phikwe on 22^ndMarch 2018, which was held under the theme ‘’Economic Stimulation: Is Competition the New Hope? 

He said although Government creates massive opportunities for economic growth, at times the anticipated growth in employment, productivity and other efficiencies are not realised because of anti-competitive conducts. These include bid-rigging or collusive tendering, market allocation, price-fixing and predatory pricing that are prevalent in the market.

“I am informed that since its establishment in 2011, bid-rigging cases account for almost 40% of the restrictive business cases that the Authority has handled. Empirical evidence has shown that bid-rigging can increase the cost of goods and services by up to 20%,” Hon. Butale said.

The Assistant Minister said he is also aware that in some instances markets are not fully functional and efficient because of the legislative environment that restricts competition. “In this regard, we are fully supportive to the Authority in its endeavour to do a comprehensive study of the laws that harm and restrict competition,” he said.

Turning to economic challenges, the Assistant Minister implored the private sector to help government to address the monumental challenges confronting the nation. “Our view as Government is that our principal role is not to create jobs, but to provide a functional micro and macro-economic environment for the private sector to take the lead in growing the economy.”

He noted that the conference came to the town of Selebi Phikwe when its economy is still reeling from the effects of the closure of the BCL Mine due to the poor performance of international copper prices.

“It is without doubt that the BCL Mine was the lifeline of this town, ever since the closure of the mine every effort has been made to ensure the town is revitalised to claim its former glory.” Hon. Butale said his Ministry is doing all in its power to ensure that the doing-business-in-Botswana environment is conducive to support the private sector.

The one day conference brought together over 100 participants from the business sector, academia, regulators and other strategic partners of the Competition Authority and the broader civil society including trade unions.