2.0 BACKGROUND
2.1 The formulation of this Competition Policy was preceded by an Economic
Mapping Survey that took into consjderation factors such as: the policy's
Iikely imp ct on unemployment; the iricreasing dominance of foreign
companies in the Botswana economy; the heed to safeguard .and promote
the growth and development of· citizen-oWned, small and medium
enterprises; and other Government policy initiatives such as the
diversification of the economy. '
2.2 The Economic Mapping Report revealed, inter alia, that th re is market
dominance in the meat industry, the cement industry, the sugar industry,
beverages, mining and the motor vehicle distribution sectors. Firms in these
sectors enjoy substantial market power where tendering for public
procurement may be open to collusion amongst bidders in their respective
'markets. Market dominance or the possibility that it could be created and
subsequently abused is a key consideration 'in the design and application of
a competition policy and its related legislation.
2.3 The survey also pointed out that there is a rapid increase in the number of
supermarkets and chain stores and a rise in franchising as well as the
proliferation of forms of distance selling, which exclude local firms.
2.4 There exists regulation of market entry that constitutes obstacles to
competition in some sectors such as utilities and telecommunications. For
example, Section 4 of the Electricity Supply Act [CAP 73:01] gives ,
precedence to the interests of the Botswana Power Corporation.
2.5
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"The Legislative Inventory of Botswana Laws Relevant for a Competition Policy"
concluded that almost every piece of legislation relating to or affecting
business activity has some bearing or impact on competition. Therefore,
the envisaged formulation of the Competition Law will take cqgnizance of
this fact.
2.'6 The Competition Policy has been formulated as a strategy for enhancing
Botswana's ability to promote free entry in the market place by investors
and all firms, irrespective of their size; the attraction of both domestic and
foreign investment flows; innovation and transfer of technology from
intellectual property rights-holders; unfettered competition; acceptable
business behaviour and conduct; fair business practice; efficiency;
competitiveness; and consumer welfare.
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