Zimbabwean appointed COMESA competition commissioner
MM: Can you tell us about yourself; who is Alexander Kububa?
AK: Basically, I am the director of the Tariff and Competition Commission of Zimbabwe. I was the first director of the authority when it was formed in 1998. So, I have been director of the Commission for 10 years now. I oversaw the merging of the Competition Commission and the Trade Commission in 2002. Before, we were separate — we were formed the same year. We merged when we realised that competition policy and trade policy were actually complementary. Before joining the Competition Commission, I was general manager for the now defunct Zimbabwe State Trading Corporation (ZSTC), which had been formed to counter the abusive practices of companies in monopoly situations. So, my role in competition did not start with this commission. It started when I was at the ZSTC. I was there for 10 years.
MM: What happened to the ZSTC?
AK: After the Economic Structural Adjustment Programme of 1990-1995, it was advised that the government should not get involved in commercial activities, but concentrate on playing a regulatory role. The Corporation was actually involved in competition and in imports and exports. But it was a very successful Corporation, I must say. Its role stabilised prices by introducing competition, particularly in monopolised areas. Before that, I had a stint with the then ministry of industry and commerce in the department of foreign trade, where I worked as Zimbabwe’s chief trade negotiator. I negotiated the Lome Convetion (with the European Union); I negotiated the Preferential Trade Area, which became COMESA and I also negotiated the SADC treaty. So, basically I have spent years in trade and competition policy.
MM: What was your first reaction to the news that you had been appointed to the board of commissioners of the COMESA Competition Commission?
AK: We welcomed the appointment as a Commission because it showed that the region considers the Tariff and Competition Commission of Zimbabwe as one of the leading commissions in this part of the region and in Africa as a whole. The Commission was involved in the formulation and drafting of the regional competition policy and law. I was directly involved in the formulation and drafting of the regional competition policy and law under COMESA. I was also one of the five international and regional competition experts who were entrusted with that task. So, it was not surprising that they nominated me as the head of the Commission to be one of the first commissioners. But more importantly, the appointment shows confidence in the Zimbabwe Tariff and Competition Authority.
MM: Which other countries in the region have established fu-lly-fledged competition authorities?
AK: Most countries have competition authorities. Kenya was the first country to establish a competition authority, followed by South Africa. Zambia, Tanzania, Namibia, Swaziland, Malawi and Mauritius. In fact, many countries are now adopting competition policy and law. It shows that the region feels that competition law and policy are important for economic development.
MM: Why do you think it is important for regional economic communities, which are aiming for higher levels of development and market integration to have competition authorities?
AK: Basically, competition and law is subject to jurisdictions at a national level. Most of these authorities do not have extra-territorial powers to handle competition concerns coming from other countries. For example, for Zimbabwe, we had the Coca-Cola-Cadbury Schweppes merger, which was done globally outside the country but it affected the Zimbabwean economy. We also had the Rothmans-BAT merger, which was also done outside the country, but with an effect on us. So, these are the kind of mergers that COMESA is preparing to deal with as it enters a customs union. We should not allow anti-competitive practices originating in one country to affect the other members, which do not have the extra-territorial powers to handle them. So, by design, the regional competition authority is to be given the necessary powers to adjudicate and remedy any anti-competitive practices in trade among member states.
MM: Since COMESA is just launching a competition authority without a fully-fledged competition tribunal for adjudication purposes, won’t that make the Commission both the policeman and judge?
AK: You are right, there must be a clear separation of the investigative and the adjudication roles. Usually the investigative role is left to the authority and appeals from the commission are then referred to an adjudication body known as a tribunal. Countries like South Africa, which have got resources, have a competition tribunal separate from their competition authority. But due to resource constraints, most countries have part-time adjudicative bodies, usually in the form of a board of commissioners. COMESA has that kind of structure, where the commission acts as the investigative authority and the board of commissioners who work part-time, as the adjudication body.
MM: Since the board of commissioners work on part-time basis, while employed elsewhere won’t that somehow compromise their ability to dispense their duties?
AK: There will be a secretariat of full-time commissioners headed by a directorate. The Commission is in the process of recruiting a director. It is the secretariat, which will do most of the work and most of the investigations on anti-competitive practices. It will do most of the examinations of mergers and acquisitions. It’s only after they have completed the investigations that they will submit the reports to the Commission. So, our role will be to adjudicate on the investigations done by the secretariat. So, it can be done, and in fact, should be done on a part-time basis.
MM: How long is the tenure of office for the board of commissioners?
AK: The tenure of office is three years and is renewable on expiry. But one is not allowed to serve more than two consecutive terms. So the maximum number of years each commissioner can serve is six years.
MM: Lastly, what can you say about the competition regime in Zimbabwe?
AK: Our competition regime is very strong. Through the merger of the Competition and Tariff Commissions, we have maximized on the benefits of trade and tariff policies. In fact, we are one of the few countries that have experimented with the arrangement. We are quite happy that the merger has been quite successful.