Ghana to Pass Competition Law Next Year

Trade and Industry Minister, Alan Kyeremanteng

Accra, Ghana, November 29, 2018//-Barring any unforeseen development, Ghana says it would pass the much-awaited Competition Law to protect companies operating in the West African country.

This came to light at a forum on the country’s Competition Law and Policy which has been in a draft state for a decade.

The Centre Coordinator for CUTS, Appiah Kusi Adomako who is the consultant of the competition law, said that government wants to be passed by end of next year.

Presenting an over of the law, James Hodge, Economics Expert at Genesis Analysis, a South African-based company said: “Vigorous competition in markets is seen as beneficial to consumers and economic development”.

He added that competition promotes lower prices, increased quantity, innovation and quality, and choice to the benefit of consumers and society.

“Competition drives the efficient allocation of resources as it encourages firms to produce maximum quantity while minimizing costs. Competition can also promote national competitiveness and create firms that have the ability to compete”, Mr Hodge stressed.

However, there are situations where competition can be undermined to the detriment o consumers and society such as: competitors may agree not to compete and collude to collectively raise prices and lower quantity; firms with considerable market power may use this to undermine rivals and in so doing make markets less competitive; and large competitors may agree to merge and monopolise a market and exploit that position, he noted.

Mr Hodge insisted: “The Competition Law is to protect competition and ensure it is not undermined by actions seeking to reduce it. This doesn’t equate to protecting individual competitors”.

Economic foundations and legal approach

According to him, competition law, unlike sector regulation has a broad ambit as it applies to all economic activity in a country.

Given this broad ambit, competition law is typically ex-post in the character. Often likened to a fire engine rather than a policeman in enforcement terms-that is responds only when the alarm is raised rather than patrolling constantly.

In this manner, for most part competition law seeks to protect what competition exists rather than trying to improve competition by targeting actions that may result in a significant lessening of competition (SLC).

African Eye Report

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