By Lwazi Dlamini
The Eswatini Competition Commission (ESCC) joins the world today (Thursday) in commemorating the World Competition Day.
The theme is “Competition Policy and Inequality”.
ESCC Chief Executive Officer Muzi Dlamini said this year was the 15th year of commemorating the day.
“This year’s theme recognizes the rise in economic inequality within and between countries and the role competition enforcement is able to play in pushing back rising inequalities,” he said.
He said the private sector, encompassing both formal and informal enterprises, forms the backbone of most African economies.
He mentioned that Micro, Small and Medium Enterprises (MSMEs) are increasingly pivotal in facilitating trade in services and driving the development of value chains across the continent.
Dlamini said Eswatini, like many other nations, has recognised the importance of looking beyond its domestic resources to stimulate growth and development.
“By adopting an open market policy, the country is granting access to its markets while enabling local companies to engage in international trade,” he said.
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“This approach is underpinned by competition laws and policies that strike a balance between the advantages of a liberalised economy that is open to foreign investment and trade and further recognises the imperative to support and protect local businesses and industries.”
The CEO said a key legislative framework supporting Eswatini’s National Development Strategy (NDS) is the Competition Act of 2007 that aims to reduce poverty through wealth creation by fostering competitive markets.
“Competitive markets encourage new players to enter, thereby generating employment opportunities and reducing inequality.
MSMEs play a crucial role in this ecosystem, serving as a vital source of social security for many in developing countries, including Eswatini,” said Dlamini.
He said competition law dismantles barriers to business growth, promotes economic activity and ensures equitable opportunities for all businesses.
“It encourages broader participation in the economy by curbing anti-competitive practices, leading to reduced income inequality and a more equitable distribution of wealth,” he added.
Dlamini stated that globally, the importance of competition law is well established with over 130 countries implementing such frameworks, supported by dedicated enforcement agencies.
He further mentioned Eswatini’s commitment to growth has led to active participation in various regional, continental economic communities and international trade organisations.
“Effective competition rules are fundamental to achieving regional and continental market integration.
Removing trade barriers without proper regulation may allow certain companies engaged in cross-border business to dominate the markets, creating unfair advantages and stifling competition,” he said.
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“To support economic recovery and align with the long-term development goals, Eswatini has introduced reforms aimed at fostering a robust and diversified private sector led by exports.”
He mentioned that the Kingdom’s competition laws play a significant role in this transformation, lowering entry barriers for new firms including MSMEs and promoting objectives such as job creation, poverty alleviation, wealth generation and reduced inequality.
“This year’s theme underscores the critical role of competition law in shaping an inclusive, dynamic and sustainable economy in Eswatini and beyond,” he said.
“The ESCC joins the world in celebrating World Competition Day and reaffirms its commitment to towards more vigorous enforcement and advocacy in priority areas to support the Kingdom’s economic and development agenda.”
