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NEWS DETAILS
Category Name BG Comments
News Name SACU should prove its mettle
Author
Date 30-07-2010

The dispute between Namibia’s Meat Co, Botswana Meat Commission (BMC) and the independent producer, Witvlei over a tender to supply 2700 tonnes of beef to Norway provides a litmus test for the Southern African Customs Union (SACU). The deal was brokered by SACU and Norway. The two SACU countries then approached their statutory beef monopolies to undertake the obligations of the quota. But, much later an independent producer in Namibia, Witvlei, cried foul, saying the system was tantamount to ‘unfair business practice’ and in contravention of open market principles of competition. The matter was taken up with Namibia’s relevant authorities and later escalated to SACU for arbitration. Independent producers in both countries are watching with keen interest which side the dice will eventually fall. Even as the state clings to the tired refrain that the private sector is an engine of growth, there is nothing on the ground to show tangible evidence. Botswana for example is littered with examples of state intervention in key economic sectors - transport (Botswana Railways), telecoms (Botswana Telecommunications Corporation), animal health, (Botswana Vaccine Institute) and many others including Botswana Meat Commission. True, these corporations served a need at a given time, but given the prevailing circumstances, it is time to review government’s role in business. We applaud Witvlei’s courage to take the Namibian government and, by extension, SACU to task over this seemingly flagrant unfair business practice. But even before we can celebrate we ought to ask the question, which structure within SACU is empowered to arbitrate on a case of this nature? Is it the secretariat, which lacks capacity, or is it the envisaged SACU Tribunal or the SACU Competition Authority, all of which are non-existent? This issue no doubt has exposed the inefficiencies inherent in our Customs Union. Just now, SACU member states are trying to establish National Bodies envisaged by the SACU Agreement of 2002. In fact, some SACU member states still do not have functioning Competition Authorities. Botswana has just recently established her own authority, which has yet to try cases. There is as such more to be done by SACU and its member states to ensure they empower citizens and dismantle unnecessary monopolies. 
 

 
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