The Authority commenced an investigation against some potato farmers or growers for possible infringement of section 31(1)(g). The investigation was precipitated by several complainants the Authority received from small potato retailers or hawkers alleging that the respondents discriminate between large customers (chain stores and wholesales) and hawkers by applying favourable trade terms to the chain stores and wholesales to the detriment of the hawkers.
It was further alleged that the respondents provide favourable ordering and loading
conditions to chain stores and wholesales by allowing them to place orders for potatoes electronically and loading their orders timeously.
Meanwhile, hawkers are required to place potato orders at the farm gate and queue up for loading, which, on average, takes three weeks.
Another alleged discriminatory trade condition pointed to the respondents refusing to supply hawkers with superior quality (Grade 1) potatoes instead of exclusively reserving it for chain stores and supermarkets. Hawkers also lamented about the supply of rotten potatoes by one potato grower in January 2024. The case is still under investigation and has been carried forward to 2024/25 financial year
The Authority says it also facilitated access to bran by advocating that Foods Botswana reduce the minimum purchase quantity for bran from thirty (30) tonnes to ten (10) tonnes to enhance access to bran for customers, including small businesses and individuals who may have been previously constrained. The Authority’s intervention was prompted by several complaints from consumers and stakeholders about access to bran from Foods Botswana. Initially, Foods Botswana had established a minimum purchase quantity of 30 tonnes, which limited market access and competition in the retailing of bran as only a few large businesses could meet the requirement leading to market concentration. Based on that, the Authority engaged Foods Botswana to remove the identified market constraint and reduce the minimum purchase quantity of brand to allow access by many businesses. The intervention came at an opportune moment when the country is facing drought throughout the country.
On other issues, the Authority launched a preliminary investigation against two market players for allegedly abusing their dominant position by tying the supply of customer-operated Automatic Teller Machines (ATMs) to the provision of maintenance services and supply of spare parts in Botswana.
It was further alleged that the the said market players may have entered into a vertical agreement that has the object and effect of blocking entry or substantially lessening competition in the aftermarket through an exclusive distribution agreement involving the supply of one of the respondents’ branded ATMs, spare parts, diagnostic tools and provision of maintenance services outside the warranty period. The investigation is still underway, and the respondents have been notified. The case will be carried forward to the next financial year 2024/25.
During the year under review, the Authority says it also initiated investigation of two (2) cartel cases after receiving information from the informants alleging possible bid-rigging.
