In abid to create an enabling environment in which enterprises can operate with minimal interference and the utmost efficiency, Rwanda is set join other East African Community (EAC) member states to enforce the competition policy and law.
The competition policy and law, which is expected to come into force ..., will protect small firms from the business giants in the EAC region.
This was revealed in sensitization meeting that brought together all Rwandan stakeholders in the act to identify ways that the EAC Secretariat can support the process of enforcing competition law in Rwanda
Speaking at the meeting, Robert Sali the Permanent Secretary of Rwanda’s Ministry of EAC said that the draft competition and consumer protection policy and law in Rwanda have been developed and they are under the final stage of adoption.
“The main objective of having a Rwanda competition law and policy is to improve competition as a means of assisting in the creation of markets responsive to consumer signals and ensuring efficient allocation of resources in the economy and efficient production with incentives for innovation,” he said.
Sali added that, the government of Rwanda through the Ministry of Trade and Industry is eager to ensure the country has a fully developed and functional competition policy and law.
He stressed that, in the light of Rwanda’s commitment to liberalise the economy, there is a need for fair and equitable environment where both the producer and the consumer can maximise their profit and satisfaction respectively.
According to Peter N. Kiguta the Director General Customs and Trade at EAC, only three EAC partner states have adopted national competition laws. They include Kenya, Tanzania and Burundi.
“There is a need to expedite the process in Uganda and Rwanda.”
He noted that, it will be a good opportunity for the Rwandan business community since the law ensures that consumers are adequately protected from firms that engage in exploitative pricing collusion that is designed to prevent competition.
It is expected that through sensitization campaigns, the business community in the EAC bloc will understand more on the objectives and benefits of the competition law and policy.
It is reported that EAC Secretariat expects to identify potential areas of collaboration to expedite the process of enforcing the law in Rwanda
Once EAC Partner States implement the competition law, it will promote and protect small and medium enterprises, individuals, organization and associations within the region following the signing of the EAC Common Market Protocol
The law prohibits collusion to fix prices, collusion in bidding, market allocation and prohibits all factors that will hurt free movement of goods and services and free trade in the region.