The Zambia Competition Commission (ZCC) is still carrying out market survey studies on the whether Illovo Sugar, a sister company of Zambia Sugar PLC, should acquire the Nanga Farm from Zambia Beef Company (Zambeef).
ZCC Executive Director, Thula Kaira, said after the study has been concluded, the commission would ascertain on what advantages and disadvantages the company was likely to create on the competition industry in the country.
Mr. Kaira explained in an interview in Lusaka yesterday that the competition sector must thoroughly investigate developments on the market before passing decision on such matters.
He noted that through such investigation, the commission will also come up with good competition market strategies that will assist both the company and the public to know the importance of having a competitive market.
Meanwhile, Mr. Kaira has disclosed that his organization was currently having consultative meetings with other key stakeholders such as the Ministries of Agriculture and Commerce, Trade and Industry on how best the issue could be addressed.
Other stakeholders with whom the ZCC is consulting include the Economic Association of Zambia (EAZ) and the Zambia Association of Manufacturers (ZAM).
He further disclosed that a conclusive report on market survey study is expected to be released by the end of this month.
He has however encouraged Zambians to take advantage of the Citizen Economic Empowerment Fund and establish businesses that will add value to the competition industry.
He explained that by having such established business entities, no company will enjoy monopoly as it will have to compete favourably with other companies in the some industry.
Mr. Kaira was reacting to calls by the public on ZCC not allow Illovo Sugar, a sister company to Zambia sugar to buy shares from Nanga Farms, which is owned Zambeef because Zambia Sugar might monopolise the market.
ZANIS/MM/KSH/ENDS
sure way to go, last time it was only RB with sugar 4 campaign
Stop wasting money and time there are no issues of competition here. Nanga farms is an out grower scheme for Zambia Sugar. Nanga farms does not process sugar. Nanga farms grows sugar cane to sell to Zambia Sugar PLC for processing. By the way the relationship between Illovo Sugar and Zambia Sugar is not ‘sisterly’. Zambian Sugar is a subsidiary of Illovo Sugar. Illovo is a holding company i.e the owner.
Competition is the name and Monopoly is the game!!
ZCC is doing a very good job. It is important to put these companies on the check list before they can start operating recessively and are soon forced to close down resulting in hundreds or thousands of retrenched employees.
Zambia Sugar PLC already enjoys some form of monopoly power. Zambia Sugar enjoys non tariff barriers like the “vitamin A” barrier which says Zambia shall not import nor produce any sugar that is lacking “witamin A”. This has clearly eliminated much competition in the industry as this is a protectionist measure.
Last time I was in Zambia, the only competitor Zambia Sugar PLC had was Kafue Sugar LTD so don’t worry ZCC, the industry still has room for competition even if Zambia Sugar PLC buys Nanga Farms but please make the report available. I would really love to read it. It probably has information that would dismiss my claim so please somehow make it available for us to get our hands on.
ZCC is doing a good job.Once Illovo buys Nanga Farm,there is a big possibility of exploiting the customers.
Please let zcc do a good job.I remember this is all what happened to copperbelt breweries when it was bought by South African breweries.Little did people know that zambian breweries just wanted to monopolise the industry.
Where is Mr. George Lipimile? Who is this Thula Kaira and what does he know? RB needs to appoint competent people and not just JJC’s!
8bRFWz comment6 ,
Great. Now i can say thank you!