KAMPALA, Uganda- The Government of Uganda through the Ministry of Trade, Industry and Cooperatives has today signed a framework agreement with the Common Market for Eastern and Southern Africa (COMESA) Competition Commission to strengthen their collaboration in the implementation and enforcement of the Competition and Consumer Protection laws.
The Government of Uganda enacted the Competition Act 2024, and is currently working on a Bill that will establish the Consumer Protection Act. The two laws are intended to ensure fair competition among businesses, safeguard consumer rights, establish redress mechanisms in case of unfair treatment, promote innovation among others.
Speaking during the signing of the agreement at the Ministry of Trade, Industry and Cooperatives offices in Kampala, the state minister for Industry Hon. David Bahati said Uganda is one of the first COMESA Member States that ratified and domesticated the COMESA Competition regulations that established a regional framework to promote fair competition within the Common Market and ensure the efficient operation of markets.
“We are very glad to have passed the Competition Act which the President assented to on 28th February 2024. Currently, we are working on the regulations to enforce this Act. Consultations with stakeholders are ongoing and we expect by the end of June 2025 the regulations will be ready”, Explained Bahati.
Hon. Bahati emphasized that when the regulations are put in place, the Ministry of Trade, Industry and Cooperatives will establish an independent department that will be responsible for enforcing the competition law with the aim of promoting and sustaining fair competition in the marketplace. He added that when passed into law, the Consumer Protection Bill will also enhance consumer welfare through consumer choices and competitive prices.
The COMESA Competition regulations prohibit anti-competitive practices, including those that hinder trade and consumer welfare.
The COMESA Competition Commission Director and Chief Executive Officer Dr. Willard Mwemba emphasized the importance of the framework agreement saying it will help Uganda to expedite the implementation of the competition and consumer protection laws, a move that will enable Ugandan businesses to access the other 20 COMESA Member States markets without any hinderances.
Dr. Mwemba added that enforcement of the competition law will enable Uganda benefit from the COMESA merger filing fees which are shared between the COMESA Competition Commission and the relevant Member States’ Competition Authorities. The Commission retains 50% of the fees, and the remaining 50% is distributed proportionally to each Member State’s share of the total turnover in the COMESA Common Market. This mechanism aims to strengthen and enhance the capacity of the National Competition Authorities.
The Commissioner Internal Trade Department in the Ministry of Trade Mr. Kalegga Zackey says Uganda has not yet started benefiting from these merger fees because it had not yet enacted the competition law. However, now that the law is in place, Uganda is going t start benefiting.
The COMESA Competition Commission, is mandated to promote competition and protect consumer welfare within COMESA. This involves investigating and enforcing anti-competitive practices, controlling mergers and acquisitions, and mediating disputes between member states related to these issues.
