How creation of competition inspectorate authority will check bad trade practices

The government is in final stages of setting up a new body to promote fair competition among producers. The body is also to ensure consumer protection, as well as enforce standards. The Rwanda Competition and Inspectorate Authority (RCIA) will be an independent organ, according to Emmanuel Baingana, the in charge of competition and consumer protection unit at the Ministry of Trade and Industry. Baingana added that the law that will establish the authority is currently awaiting parliamentary approval. He said the law will determine the institution’s responsibilities, organisational structure and functions, among others. Besides creating excitement among consumers and consumer protection bodies, the impending establishment of RCIA raised questions on how it will change the dynamics of trade, protecting consumers and ensuring fair competition among local industrialists. Under the law, that will establish RCIA, producers and importers face prosecution for contravening its provisions as far as manufacturing and importation of goods is concerned. “Unlike in the past where each ministry has had its quality inspectorate department, the new law will bring together all the current inspectorate departments in the ministries of trade and industry, health and agriculture to form one quality inspectorate body to ensure proper co-ordination,” Baingana told Business Times. The Cabinet has already approved an enabling law, he added on Thursday. The body follows the restructuring of former standards body last year, which was renamed Rwanda Standards Board with a bigger mandate. The development gave birth to new departments and specialised agencies like the competitions authority. According to Jean Louis Uwitonze, the director general for planning and marketing at the Ministry of Trade and Industry, the establishment of the authority could end complaints and counter-accusations among government inspectorate bodies, producers and consumers. “It will foster the culture of ensuring quality along the value chain and in production processes, besides ending the current ‘blame game’ between producers and consumers,” Uwitonze said. “It is government’s responsibility to ensure that consumers are protected; the new body will be tasked with this responsibility.” Producers, consumers speak out Damien Ndizeye, the executive secretary Organisation of Rwanda Consumer Rights Protection, believes the authority will re-enforce the existing laws and ensure consumers get value for money. “It will also help discipline traders and producers, who want to profit through unscrupulous means, especially selling and making fake and substandard products. This will protect consumers’ health and ensure fair competition among businesses,” Ndizeye said. Florence Umurungi, the president of the Rwanda National Dairy Platform, is confident the new law will help protect producers from dubious manufacturers. “Most often, producers suffer from unfair competition, especially with infiltration of substandard products that are always sold at giveaway prices. Therefore tightening the nuts and closing all the loopholes to keep such individuals at bay will enhance profitability and competitiveness of the private sector,” argued Umurungi. RSB inspectorate department merged Among the units that will form the institution is Rwanda Standards Board (RSB) quality assurance and inspectorate department. Dr Mark Cyubahiro Bagabe, the director general, said setting up of RCIA will allow the standards body to focus more on standard development rather than implementation. “It also means efficient implementation of the standards among stakeholders,” he added. RCIA will be tasked to carry out investigations about competitive practices and conformity to standards by service providers and producers, both in public and private sectors. RCIA’s mandate Article 4 of the draft law mandates RCIA to carry out inspections to ensure conformity to quality and standards in pharmaceuticals, plant and animal products, as well as other products meant for public use or consumption. The institution will also monitor and enforce the implementation of laws and regulations relating to competition for the protection of consumers, while maintaining the quality management system in accordance with relevant regional and international standards. The law will also allow the authority to advise the government on matters related to promotion of competition and enforcement of standards. Under the new law, RCIA will be mandated to impose sanctions as result of breach of any directives and issue or even revoke licences of anyone found contravening standards. This, according to experts, will help establish relationships and co-operation with other institutions with similar mission at national, regional and global levels.

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How creation of competition inspectorate authority will check bad trade practices