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a tripartite report - Unctad

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156 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE<br />

sector. According to the Pensions and Insurance<br />

Authority (PIA), most competition concerns in the<br />

insurance sector relate to unfair practices and under-cutting<br />

of each other by the industry players.<br />

The Energy Regulation Board (ERB) submitted that<br />

the main competition concerns in the energy sector<br />

include monopolistic tendencies, because of high<br />

entry barriers, and predatory pricing, and that collusive<br />

and cartel-like behaviour in the sector is also<br />

a very live issue. ERB also submitted that there are<br />

a lot of competition concerns in the electricity sector<br />

because of its dominance by one player, Zambia<br />

Electricity Supply Company, which tends to abuse<br />

its dominance.<br />

-<br />

ing<br />

rife in the banking services sub-sector, related<br />

to exploitative bank charges.<br />

4.3 Competition Enforcement<br />

Challenges<br />

The new Act greatly facilitated the effective enforcement<br />

of competition law in Zambia. As has<br />

already been pointed out, the main enforcement<br />

challenges under the old Act included wide exclusions<br />

and exemption provisions, limited inter-<br />

tion<br />

provisions, limited investigative powers and<br />

administrative remedies, and absence of a leniency<br />

programme, which have all been addressed<br />

in the new Act. The Commission is however still<br />

facing some challenges in competition enforcement. <br />

ment<br />

conducted two dawn raids during the months<br />

of October and November 2011. The challenges it<br />

faced in doing so were mainly related to the human<br />

factor. It had to rely on other security agencies<br />

to undertake the raids, which had little knowledge<br />

of what was being looked for. Lessons were learnt<br />

but it was recognized that a lot more needed to be<br />

done by the Commission at the next raid.<br />

<br />

abuse cases because of lack of information and<br />

appropriate economic tools. Training needs required<br />

in competition enforcement include investigative<br />

skills, litigation skills, and, to a lesser extent,<br />

principles of competition law.<br />

It is recommended that the Commission<br />

undergo extensive training in the conduct<br />

of dawn raids, as well as in other<br />

competition enforcement areas such<br />

as case investigations and litigation.<br />

5. COMPETITION ADVOCACY<br />

The Commission has wide advocacy responsibilities<br />

under the Act. In terms of section 5 of the new Act<br />

the Commission is the “primary advocate for competition<br />

and effective consumer protection in Zambia”.<br />

It also has the functions of: (i) advising government<br />

on laws affecting competition and consumer<br />

protection; (ii) providing information for the guidance<br />

of consumers regarding their rights under the<br />

Act; (iii) advising the Minister on agreements relevant<br />

to competition and consumer protection and<br />

on any other matter relating to competition and<br />

consumer protection; and (iv) cooperating with<br />

and assisting any association or body of persons to<br />

develop and promote the observance of standards<br />

of conduct for the purpose of ensuring compliance<br />

with the provisions of the Act.<br />

The old Act also bestowed upon the Commission<br />

considerable advocacy functions, such as the functions<br />

of: (i) providing persons engaged in business<br />

with information regarding their rights under the<br />

Act; (ii) undertaking studies and making available<br />

to the public <strong>report</strong>s regarding the operations of<br />

the Act; and (iii) cooperating with and assisting any<br />

association or body of persons to develop and<br />

promote the observance of standards of conduct<br />

for the purpose of ensuring compliance with the<br />

provisions of the Act.<br />

<br />

visit to Zambia that it tries to make itself visible<br />

to the business community and general public<br />

through the media (both print and electronic).<br />

It engages the government in what it is doing<br />

through representations on discussions under the<br />

auspices of trade negotiations forums such as the<br />

WTO and the Economic Partnership Agreements<br />

(EPAs) with the European Union. It also has held<br />

joint stakeholders workshops with various organizations<br />

such as the Law Association of Zambia, the<br />

Zambia Association of Chambers of Commerce<br />

and Industry, the Chamber of Mines, the Manufacturers<br />

Association, and the Pensions and Insurance<br />

Authority.

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