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TANZANIA rect investment in the United Republic of Tanzania. NIPPA provided for priority investment areas, conferred eligible investors with generous incen- antees against nationalization, as well as provided assurances for dispute settlement. An investment attraction legislation of 1997 updated the NIPPA. In the revised law, IPC was transformed into a new organization known as Tanzania Investment Centre (TIC). The Capital Development and Market’s Authority (CD&MA) was established in 1994. change (DSSE), began trading in April 1998. Other institutions that came up were Tanzania Food, Drug and Cosmetics Authority (TFDA), Electricity, Water and Gas Utility Regulatory Authority (EWURA), Surface and Marine Transport Regulatory Authority (SUMATRA), Tanzania Communication Regulatory Authority, and the Civil Aviation Authority. 1.4 Economic Goals of Competition Policy The United Republic of Tanzania’s competition policy goals are no different from those of most countries in the region. With high unemployment and a less innovative and competitive domestic industrial structure, competition policy is aimed at addressing these issues. As all other policies, the from the primary goal of the National Development Vision 2025, the SIDP, the NTP, etc – all emphasizing poverty reduction and its ultimate eradication through industrialization, and an export-led domestic economy. Competition policy has been recognized as aimed at addressing the problem of concentration of economic power that can arise from market imperfections, monopolistic behaviour in economic activities and consequent restric- not different from the overall economic goals. The Government of the United Republic of Tanzania has recognized that competition policy aims at perpetuating freedom of trade, freedom of choice and access to markets. Accordingly, the ultimate objective of economic regulation and competition policy is to protect the consumer through control of monopoly behaviour on the part of producers. The National Trade Policy of 2003 was emphatic in 39 characterizing the domestic industrial sector and its preparedness in view of international competition: innovative. Developments in information and communication technology (ICT) have given rise to new communication media with wide and instantaneous outreach at relatively low cost. The ultimate result is the transformation of customer expectations that are forcing the business world to services. In this situation, export-led growth is a prerequisite for the attainment of poverty eradicating rates of GDP growth in the United Republic ning the competitiveness required in export-led growth is built and nurtured through the learning processes and experiences gained in the domestic economy. This calls for a dynamic process of trade development to stimulate the competitiveness of Tanzanian goods and services in the domestic and regional markets as the stepping stone to more effective entry and participation in the global market”. 28 A number of research work by academics and practitioners have previously attempted to review the goals of competition policy and its development in the United Republic of Tanzania. One such notable study was by a Tanzanian academic Godius Kahyarara. The study showed that efforts to protect consumers against anticompetitive ductivity and business investments, and thus, on economic performance as a whole. Kahyarara cor- laws, regulations, and institutions that control the from becoming monopolistic through mergers, and prohibit anticompetitive behaviour such as is critical to any development process to ensure the effective utilization of resources, as well as the proper allocation, marketing, and pricing of those resources,” Kahyarara noted 29 . “This research ing the performances of enterprises in an African context.” Kahyarara noted that increasing competition within an economy is no easy task. Many stakeholders, particularly workers in protected businesses such as monopolies and SOEs, feared TANZANIA
40 VOLUNTARY PEER REVIEW OF CLP: A TRIPARTITE REPORT ON THE UNITED REPUBLIC OF TANZANIA – ZAMBIA – ZIMBABWE for their future when liberalization is introduced. Promoting fair competition improved the perfor- translates into gains for the overall economy. Under Section 3, the Act has an express “Object of the Act” clause, which states as follows: The object of this Act is to enhance the welfare of the people of the United Republic of Tanzania as a whole by promoting and protecting effective competition in markets and preventing unfair and misleading market conduct throughout the United Republic of Tanzania in order to: distribution and supply of goods and services; (b) promote innovation; and (d) protect consumers. The legislation provides broader goals for the competition law, no different than in most laws in the region. It would, however, seem that (a) and (c) above may be referring to one and the same thing. It is clear from the foregoing that the competition legislation in the United Republic of Tanzania has the core objectives which can be summarized as While there have been no empirical studies to show how the decisions of the competition authority have omy, it is observed that in mergers, the focus is on prohibiting those mergers that create a dominant position of market power and inherently an attempt is made to “nip in the bud” barriers to market entry. According to the Ministry of Trade, Industry and Marketing Annual Report for 2009–2011, about 97 per cent of the industry in the United Republic of Tanzania was in private hands. Further, the Government had developed a Private Sector Development Strategy (PSDS) to ensure broadbased and inclusive participation in production and trade. The PSDS entailed the establishment of an enabling business environment through better regulation; increased private sector access to capital including “titled-land,” education, skills and entrepreneurship as well as provision of business support services in management, production and marketing. 1.5 Process of Competition Law Drafting The process of drafting the competition legislation, as in most countries in the Southern and Eastern Africa region, were precipitated by the collapse of the Soviet Union, which triggered political and economic reform in countries that had adopted the Soviet style of economic management. Through the World Bank and IMF supported SAPs, countries such as the United Republic of Tanzania were compelled to begin a process of privatization. Privatization meant industrial reorganization where the SOEs, usually monopoly or With this, the World Bank rendered assistance to the United Republic of Tanzania to develop appropriate legislation such as the privatization and competition legislations. The usual legal process that was followed was a consultation process with key stakeholders such as consumer and trade related NGOs, the chambers of commerce, and the various Government ministries and departments before the law was drafted using a consultant and repositioned into a bill before Parliament through the Ministry of Justice. In 1994, the United Republic of Tanzania enacted the Fair Trade Practices Act and established the Fair Trade Practices Commission 30 . The Act covered general anticompetitive trade practices, unfair trade and consumer protection provisions. However, this law did not achieve much, speculatively because it was accepted without understanding as part of the IMF SAPs and did not have a national champion to promote and promulgate it. The Commission itself was not well resourced and supporting institutions not prepared. Interface with regulators was equally problematic. Under the auspices of the World Bank’s Project Implementation Plan (PIP), a consultancy <strong>report</strong> was prepared to assist the Presidential Parastatal Sector Reform Commission (PPSRC), which recommended the establishment of two multi-sectoral regulatory agencies, namely the Fair Competition Commission and the Fair Competition Tribunal. The PIP included proposed organization structures, staffing levels, procurement plan, three years capital and operation manuals, implementation plan and code of ethics for the two institutions 31 . Following this, internal reviews followed and with the World
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ZIMBABWE FULL REPORT ZIMBABWE
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ZIMBABWE TABLE OF CONTENTS PREFACE
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ZIMBABWE This report is part of the
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ZIMBABWE With the growing political
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ZIMBABWE of restrictive practices,
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ZIMBABWE competition authorities do
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ZIMBABWE divided according to geogr
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ZIMBABWE The Commission in 2006 whi
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ZIMBABWE to take care of themselves
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ZIMBABWE (under Section 9); basical
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ZIMBABWE Full scale investigation i
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ZIMBABWE (ii) to produce any book,
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ZIMBABWE The fact that CTC has a co
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ZIMBABWE tariat of technocrats, who
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ZIMBABWE Table 2: Number of Competi
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ZIMBABWE Regarding the handling of
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ZIMBABWE Whilst the arguments can b
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ZIMBABWE Anti competitive agreement
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