Government Swoops on Cartels and Monopolies Over Pricing
16 JUN, 2019 - 00:06
Debra Matabvu and Kuda Bwititi
Zimbabwe Sunday Mail
GOVERNMENT has begun enforcing a combination of strategies to break monopolies and foster competition among companies in key sectors providing basic commodities, which have come under siege from price cartels so pushing products beyond the reach of many.
This comes as Parliament has invited Industry and Commerce Minister Mangaliso Ndlovu to furnish it with a comprehensive explanation on the wave of price increases plaguing the economy.
The Sunday Mail has gathered that authorities are urgently finalising reforms to the Competition and Tariff Commission (CTC) that will usher a new environment for fair business practices whilst introducing punitive action against unethical profiteering.
The development also comes amid indications the much awaited Consumer Protection Bill, to enhance and safeguard the rights of shoppers, will be signed into law within the next month.
In an interview, Minister Ndlovu said a report by the CTC had uncovered monopolies to be behind the price distortions particularly of sugar, poultry and dairy products.
“Monopolies are a big problem in our economy. They stifle innovation. You can see what is happening in our economy in terms of monopolies,” he said.
“CTC did a snap survey and the full report, at the moment, is confidential. However, they found out that the food sector, in particular, is monopolised to the extent that some control and manipulate prices on the market.
“They have also given recommendations which we have started instituting. That is why you see that the Government recently approved the Zimbabwe National Industrial Development Policy to promote competitiveness.”
Minister Ndlovu said the major measure to break monopolies was funding for other players to set up shop and stimulate competition.
He said the approved principles of the amendments of the CTC included empowering the commission to levy companies that violate competition laws.
The introduction of the Zimbabwe National Industrial Development Policy last week would also help bring competitiveness in the economy.
He said the Consumer Protection Bill was expected to become law next month and that seeks, among other objectives, to criminalise retailers and manufacturers who sell goods on condition that customers buy other products from the same shop.
Debra Matabvu and Kuda Bwititi
Zimbabwe Sunday Mail
GOVERNMENT has begun enforcing a combination of strategies to break monopolies and foster competition among companies in key sectors providing basic commodities, which have come under siege from price cartels so pushing products beyond the reach of many.
This comes as Parliament has invited Industry and Commerce Minister Mangaliso Ndlovu to furnish it with a comprehensive explanation on the wave of price increases plaguing the economy.
The Sunday Mail has gathered that authorities are urgently finalising reforms to the Competition and Tariff Commission (CTC) that will usher a new environment for fair business practices whilst introducing punitive action against unethical profiteering.
The development also comes amid indications the much awaited Consumer Protection Bill, to enhance and safeguard the rights of shoppers, will be signed into law within the next month.
In an interview, Minister Ndlovu said a report by the CTC had uncovered monopolies to be behind the price distortions particularly of sugar, poultry and dairy products.
“Monopolies are a big problem in our economy. They stifle innovation. You can see what is happening in our economy in terms of monopolies,” he said.
“CTC did a snap survey and the full report, at the moment, is confidential. However, they found out that the food sector, in particular, is monopolised to the extent that some control and manipulate prices on the market.
“They have also given recommendations which we have started instituting. That is why you see that the Government recently approved the Zimbabwe National Industrial Development Policy to promote competitiveness.”
Minister Ndlovu said the major measure to break monopolies was funding for other players to set up shop and stimulate competition.
He said the approved principles of the amendments of the CTC included empowering the commission to levy companies that violate competition laws.
The introduction of the Zimbabwe National Industrial Development Policy last week would also help bring competitiveness in the economy.
He said the Consumer Protection Bill was expected to become law next month and that seeks, among other objectives, to criminalise retailers and manufacturers who sell goods on condition that customers buy other products from the same shop.
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