Uganda and COMESA partner to accelerate competition and consumer protection

In a move poised to boost its economy and protect its consumers, Uganda has joined forces with the Common Market for Eastern and Southern Africa (COMESA) to fast-track the implementation of its Competition and Consumer Protection laws. A framework agreement was recently signed between the Ministry of Trade, Industry, and Cooperatives of Uganda and the COMESA Competition Commission, solidifying their collaborative efforts in enforcing these crucial regulations.

The partnership comes at a pivotal time for Uganda. The government recently enacted the Competition Act 2024, a landmark piece of legislation designed to foster fair business practices and level the playing field for all players. Furthermore, the country is actively developing a Consumer Protection Bill aimed at enshrining consumer rights, establishing effective redress mechanisms, and promoting overall consumer welfare.

“We are very glad to have passed the Competition Act,” stated the State Minister for Industry, David Bahati, during the signing ceremony. He further highlighted the ongoing efforts to develop regulations to enforce the Act, with consultations underway and a target date of June 2025 for their completion. He emphasized the government’s commitment to establishing an independent department within the Ministry of Trade, Industry, and Cooperatives dedicated to enforcing the competition law and promoting a competitive marketplace. The passage of the Consumer Protection Bill promises to further empower consumers through increased choices and competitive pricing.

Uganda’s commitment to these laws aligns with the COMESA competition regulations, which prohibit anti-competitive practices that can hinder trade and harm consumer welfare within the region. As one of the first COMESA member states to ratify and domesticate the COMESA competition regulations, Uganda is demonstrating its dedication to creating a fair and efficient market.

Dr. Willard Mwemba, Director and Chief Executive Officer of the COMESA Competition Commission, lauded the framework agreement as a crucial step in expediting the implementation of Uganda’s competition and consumer protection laws. He highlighted the significant benefits for Ugandan businesses, noting that the successful implementation of these laws would enable them to access the markets of the other 20 COMESA member states without facing unfair obstacles.

Beyond facilitating regional trade, Dr. Mwemba pointed out another key advantage: the potential for Uganda to benefit from COMESA merger filing fees. These fees, collected from businesses involved in mergers and acquisitions, are shared between the COMESA Competition Commission and the relevant member states’ competition authorities. The Commission retains 50% of the fees, while the remaining 50% is distributed proportionally based on each member state’s contribution to the total turnover in the COMESA Common Market. This mechanism is designed to bolster the capacity and effectiveness of national competition authorities.

Currently, Uganda has not yet realized the financial benefits of these merger fees, as Commissioner Internal Trade Department in the Ministry of Trade, Kalegga Zackey, explained. However, with the Competition Act now in place, the country is poised to begin benefiting from this revenue stream, strengthening its ability to enforce the law and protect its market.

The COMESA Competition Commission plays a vital role in promoting competition and consumer protection within the COMESA region. Its mandate includes investigating and enforcing anti-competitive practices, scrutinizing mergers and acquisitions, and mediating disputes between member states related to these issues. The partnership between Uganda and COMESA signals a strong commitment to fostering a fair and competitive environment that benefits both businesses and consumers within the region. This collaboration will undoubtedly contribute to Uganda’s economic growth and enhance the welfare of its citizens.