Competition and trade developments within Comesa |09 July 2018

‘Competition law is of paramount importance in both regional and continental integration’

The director and chief executive of the Common Market for Eastern and Southern Africa (Comesa) Competition Commission, George Lipimile, has said even in the Africa Continental Free Trade Area (AfCFTA), competition law is of paramount importance.

Mr Lipimile was speaking during the fifth regional sensitisation workshop for business reporters on competition and trade developments within Comesa in Nairobi, Kenya, recently.

The Comesa Competition Commission has the mandate of promoting and encouraging competition by preventing and prohibiting anti-competitive conduct by market players which deter the efficient operations of markets, partition the common market and erode consumer welfare.

The aim of the workshop was not only to provide updates on competition developments and facilitate discussion among the reporters but also to appraise the important developments that are taking place with respect to regional integration, access to information, the role of the media, technology and innovation in the media. 

It also discussed the relationship between the media and the Commission. The aim of the Commission is also to continue building and strengthening the network of competition journalists in the common market and this workshop availed of this opportunity. Seychelles NATION was also present at the workshop.

The AfCFTA was also elaborated where its importance to Africa trade was highlighted. Its aim is to integrate the distinct national markets which have for so long characterised trade between the African countries, with the object of providing opportunities for economic growth, irrespective of the location of producer, supplier, wholesaler, retailer or customer.

Even in the AfCFTA, competition law is of paramount importance. It is to be noted that Seychelles is among the African countries which has signed the agreement but not yet ratified it. This was done through our Vice-President Vincent Meriton while in Addis Ababa. Recently a series of local consultations with various relevant stakeholders were organised so participants were updated on the pros and cons of such a free trade area.

“The AfCFTA is the continent’s most ambitious integration initiative. As the AfCFTA approaches, businesses throughout the continent need to gear themselves up to face new challenges and grasp new opportunities. The main objectives of the AfCFTA are to create a single continental market for goods and services, with free movement of business persons and investments, paving the way for accelerating the establishment of the continental Customs Union; expand intra-African trade through better harmonisation and coordination of trade liberalisation and facilitation, across the regional economic communities and the continent in general; and enhance competitiveness at the enterprise and industry level, and support economic transformation, through exploitation of economies of scale, continental market access and better reallocation of resources,” said Mr Lipimile.

But he also stressed on the importance of competition rules in the AfCFTA as market integration entails the free movement of goods and services, capital, and labour, this can increase the likelihood of anti-competitive practices extending beyond national borders.

Mr Lipimile also explained the benefits of the continental competition rule in the AfCFTA.

“Introduction of a ‘one stop shop’ for cross border transactions will ease the cost of doing business on the continent. It won’t allow duplication of filing; will reduce filing fees and will eliminate risks of different decisions from different competition jurisdictions,” he said, adding that unlike the national competition authorities whose jurisdiction is limited by national boundaries, AfCFTA competition rules would provide extra-territorial jurisdictional powers to investigate restrictive business practices across the African continent.

M.J.