By Kwanele Dhladhla
The Eswatini Competition Commission (ESCC) has sternly warned the country’s major retailers against the illegal wholesale of bread and further threatened to impose a fine to all implicated business establishments if they continue to breach the Licensing Order of 1975.
This transpired during a meeting with some of the country’s largest supermarket chains—Shoprite, Spar, Pick’ n Pay, OK Foods, and Boxer Stores, in a bold and unprecedented move intended at educating the retail giants on anti-competitive trade practices, consumer rights, and the legal minefield surrounding the wholesale of bread.
In the ESCC quarterly publication, Tekucudzelana News, it was reported that the high-level stakeholder engagement, held in partnership with the Ministry of Commerce, Industry and Trade’s Department of Commerce, had been prompted by a complaint that could shake up how bread reaches the local shop shelf.
The Bakers Association of Eswatini recently filed a two-step increase proposal for bread prices, which could see the first rise of 70 cents, which was slated for April 15, 2025, representing a 5.1 per cent jump.
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A further 25 cents increase, or two per cent, has been planned for October 1, 2025.
“We were approached by a bakery manufacturer who raised concerns that major retailers were wholesaling bread to smaller retailers—something that is strictly off-limits under the Trading Licensing Order of 1975,” explained Nolwazi Kunene, Manager of Cartels and Enforcement at ESCC.
In line with their customer-centric approach and strong drive to educate rather than to penalise entities for wrongdoing, ESCC reported that it did not opt to rush into imposing penalties but opted for dialogue and education.
“This was not about confrontation. It was about ensuring that our retailers understand the laws that govern them and how they affect fair competition in our economy,” Kunene explained.
It was stated that the session was packed with essential content: the mandate and functions of the ESCC, benefits of healthy competition, and a crash course in the Competition Act 2007.
“We needed them to appreciate that competition is not just about pricing; it is about access, fairness, and sustainability of businesses across the value chain,” she said.
Kunene pointed out that the bread might seem like a simple product, but how it gets sold has deep implications for small bakers trying to survive.
She explained that the ESCC’s Consumer Protection Department also weighed in with a detailed
presentation on consumers’ rights, redress mechanisms, and unfair trade practices – topics that hit close to home for retailers juggling customer service, damaged goods, and supplier disputes.
ESCC said retailers, to their credit, did not shy away from tough questions during the discussions.
“They wanted to know things like whether they could legally refuse to replace goods negligently handled by customers,” Kunene recounted.
She said some of the retailers even asked what protective measures existed for retailers who unknowingly sell defective products supplied to them.
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However, she noted that the heart of the conversation lay in the controversial bread sales.
The commission disclosed that retailers acknowledged that ‘bulk buying’ of in-house bread by unknown individuals—possibly for resale—was a trend they had noticed but had not fully comprehended to the extent of finding it to be problematic.
“They asked a fair question: At what point does selling a few loaves cross the line into wholesaling?”. It is a grey area, and they wanted guidance—and we welcomed that honesty,” Kunene said.
In response, Kunene said the Ministry of Commerce, Industry and Trade reminded the retailers of the Licensing Order’s clear prohibition, which stipulates that retailers may not engage in wholesaling without the proper license, regardless of who the customer was or how the transaction appeared, to which retailers pledged to exercise caution.
“They promised to monitor bulk purchases more closely and avoid unintentionally breaching the law,” Kunene assured.
While no fines were issued this time, the Ministry of Commerce, Industry and Trade made it clear that future violations would carry consequences.
“This was a soft approach,” said a senior official from the Ministry of Commerce, Industry and Trade. “But it was a warning shot, nonetheless. We are watching, and next time, we may not be so lenient.”
The ESCC concluded by stating that the meeting closed with mutual appreciation and a firm commitment to ongoing dialogue.
