a tripartite report - Unctad

ZAMBIA
The competition and fair trading legislation introduced in Zambia a novel mechanism of systematically addressing
unfair competition practices in the economy as well as preventing abuse of monopoly of dominant market power,
with a deliberate outcome of a well-functioning market economy as well as enhanced consumer welfare. This spirit
was encapsulated in the preamble to the legislation itself, which lists the following as its objectives: (i) to encour-
and distribution of goods and services; (iv) to secure the best possible conditions for the freedom of trade; (v) to
expand the base of entrepreneurship; and (vi) to provide for matters connected with or incidental to the foregoing.
Source: Strategic Plan 2008-2011, Zambia Competition Commission.
Lipimile (2005) 116 went into more detail on the
need for a competition law and policy in Zambia.
Box 4: Need for Competition Law and Policy in Zambia
97
His submission on the matter is paraphrased in
Box 4.
There was a strong argument opposed to the development and enforcement of competition law in the least developed
countries like Zambia. It was argued that the scarce, skilled labour required for the effective enforcement
of competition is vastly disproportionate to its proven positive impact on economic development. Most, if not all,
of the least developed countries had embarked on a liberalized industrial policy regime where private corporate
create a competitive domestic market. Liberalization of international trade was relatively simple to implement and
did not require expenditure of scarce skills. In essence, that argument regarded liberalization of trade as a substitute
for domestic competition law. The common example given was that of Asian countries which had no competition
laws but were fully developed. The current trend was however that countries such as Hong Kong (China), Japan and
South Korea had in the past decade introduced major measures that included competition law principles.
It was further argued that competition law limited the ability of the least developed country Governments to introduce
with the developed country multinational corporations. Competition law was seen as a danger to competitiveness.
While there is now a general consensus on the need for a competition law and policy for developing countries like
Zambia, three inter-related issues are increasingly recognized:
economy. Consequently, the linkages between various policy initiatives and their combined effect on com-
policy and the scope of competition law.
In making the case for an effective competition law, it was important to stress that the design of competition law
had to take appropriate account of Zambia’s level of development and the long-term objective of the country’s
economic policy.
Zambia had realized that competition policy and that competition policy and industrial trade policy should serve complementary
roles in creating an environment that promoted growth and productivity on the one hand, and free and fair
competition on the other. It was not a question of one replacing the other. Competition law and policy was also important
as it allows the country to create conditions conducive to productivity enhancement, ensures the sound development
of domestic industry, and restricts abuses of dominant positions by large companies, including multinationals.
The Zambian economy had been experiencing both the external pressure of competition and internal limits of
on the local market. Under those conditions, the adoption of a national competition law and policy had become
necessary. If Zambia’s economic productivity was to continue increasing so that the nation could maintain its competitive
edge, adopting a national competition law was the pressing task at hand.
Source: George K. Lipimile, in the part on ‘Zambia’ in “Review of Recent Experiences in the Formulation and Implementation of
Competition Law and Policy in Selected Developing Countries: Thailand, Lao, Kenya, Zambia and Zimbabwe”, United Nations,
New York and Geneva, 2005.
ZAMBIA