2024 ANNUAL PRESS STATEMENT

2025-04-01

Good morning, Directors and Managers from the Competition and Consumer Protection Commission (“the Commission”), members of the press, esteemed stakeholders, and valued partners, ladies and gentlemen.

I am pleased to present to you the Competition and Consumer Protection Commission’s key achievements for the year 2024, marking a year of significant strides in regulatory enforcement and business compliance, institutional development, and consumer advocacy.

Throughout the past year, the Commission has intensified its regulatory oversight to ensure that businesses adhere to the principles of fair competition. In 2024, the Commission successfully handled a total of 41 cases of restrictive business practices (RBPs), representing a significant 32% increase from the previous year. The sectors impacted by these actions included Information and Communication Technology (ICT), retail and wholesale, services, agriculture, and manufacturing.

The rise in enforcement actions is a positive indicator of our efforts to build stakeholder confidence in the Commission. We anticipate that this will encourage more whistleblowers to come forward, leading to the effective resolution of reported cases. Our ongoing enforcement initiatives are designed to create favourable competition in various markets, paving the way for new entrants that will enhance consumer choice and contribute positively to the economy.

In addition to addressing RBPs, the Commission launched 10 investigations into cartel activities, particularly within the agriculture and manufacturing sectors.

These efforts underscore the Commission's commitment to fostering a level playing field and promoting fairer markets. By encouraging increased competition, growth, creativity, and innovation, we aim to facilitate easier market entry for new firms, ultimately benefiting consumer welfare.

Ladies and Gentlemen,

The Commission wishes to inform you that one of the cases investigated involves allegations of anti-competitive practices against Yango in the past year. These allegations raised significant concerns, and the Commission has been actively investigating the matter to ensure fair competition and consumer protection in the market. The allegations against Yango include, but are not limited to: the removal of previously offered bonuses to drivers; low fares that may distort the market and disadvantage competitors; locking-in mechanisms that may restrict drivers and riders from using other platforms; and inadequate information relayed to drivers through the Yango application, potentially affecting their ability to make informed decisions.

In response to these allegations, the Commission has engaged in extensive consultations and collaborative efforts with key stakeholders, among which are government ministries and agencies. These engagements have been crucial in ensuring a comprehensive and multi-faceted approach to the investigation.

I am further pleased to inform you that the investigations have reached an advanced stage, and the Commission is committed to concluding this process with the utmost diligence and transparency. Once the findings are finalized, the public will be promptly informed of the outcome and any subsequent actions that may be taken.

The Commission is happy with compliance levels as indicated by the increase in merger notifications, which rose from 63 in 2023 to 103 in 2024, suggesting a positive trend in compliance with regulatory requirements. A merger notification, which is the application for authorization from an authority such as CCPC to approve a transaction when a company intends to merge with or acquire another company, is important as it ensures that such transactions do not distort competition in various markets in which they occur. Further, the 103 merger assessments included 37 merger transactions notified through the COMESA Competition Commission (CCC), and therefore reinforced cross-border market efficiency.

Merger transactions provide numerous economic benefits to the country. Through the review of mergers and acquisitions, merging companies are able to lower their costs of production and improve productivity through economies of scale. Other benefits of mergers and acquisitions include job creation, increased investments as larger firms often have more resources to fund innovation, research and development stronger market competition, as mergers can create more competitive businesses, driving economic growth, as well as bringing about enhanced products and services, to mention but a few. It is on this bedrock that, in the year under review, the Commission facilitated the creation and maintenance of 1,844 direct and indirect jobs.

Remarkably, the Commission facilitated investments worth US$83,562,678 in the economy through mergers and acquisitions.

In addition to mergers, restrictive business practice, and cartel cases mentioned above, the Commission further, in 2024, also investigated six (6) enterprises that were alleged to have abused their dominant positions of market power in various markets. All six (6) cases were closed with no fines being imposed, as it could not be conclusively determined that the said enterprises had abused their dominance. Nonetheless, the mere fact that we inquired into the enterprises’ conduct, I am left without a doubt that, in itself, acted as a deterrent for such unwelcome conduct.

Ladies and Gentlemen,

Consumer protection remains a core mandate, with the Commission successfully resolving 1,477 consumer complaints across various sectors, with the majority of cases originating from the retail sector (39.67%), followed by the financial sector comprising commercial banks and microfinance institutions (30.19%) and the Information and Communications Technology (ICT) sector (13.60%).

Key issues in the retail sector included traders failing to supply goods purchased on hire-purchase agreements and the sale of defective goods, particularly electronic goods such as mobile phones and television sets. In the financial sector, complaints largely centred on unsolicited deductions from salaries or bank accounts and continued deductions for loans that had already been settled. Meanwhile, in the ICT sector, most complaints involved delayed or non-reversal of mobile money transactions.

The Commission remains committed to protecting consumer rights across all sectors and ensuring that complaints are addressed efficiently, either directly or through collaboration with relevant regulators.

To achieve this, the Commission worked in collaboration with regulatory partners throughout the year by referring particular cases to sector regulators better positioned to address specific issues

The Commission also engaged independent expert assessment service providers in order to hasten investigations of defective products, such as inverters, solar batteries, and solar panels in the alternative energy sector.

Furthermore, the Commission teamed up with partners and successfully conducted joint inspections of 1,443 business premises, leading to the seizure of non-compliant goods valued at K1.45 million throughout the country over the past year. Also, the Commission facilitated consumer refunds totalling K4.2 million and ensured product replacements and repairs worth K1.49 million, reflecting our commitment to upholding consumer rights.

Legal and institutional reforms have also been a focus area. The Commission implemented amendments to the Competition and Consumer Protection Act No. 24 of 2010, as amended by Act No. 21 of 2023, thereby enhancing our enforcement mechanisms. The Board imposed penalties totalling K8.64 million on 26 enterprises that violated competition laws.

In 2024, the Competition and Consumer Protection Commission handled 43 cases before the Competition and Consumer Protection Tribunal, aiming for a 75% successful prosecution rate. Fifteen (15) cases were concluded and awaiting judgment, while 13 were pending determination by the Tribunal as to whether the Board of Commissioners' decisions were within the ambit of the Act. Additionally, 15 mandatory order applications involving non-compliant enterprises awaited determination. The Tribunal delivered three judgments favouring the Commission in the aviation, construction, wholesale, and retail sectors. One case, Kalasa Mwansa vs The Competition and Consumer Protection Commission, upheld that a consumer was not entitled to a refund or replacement for a phone deemed non-defective by experts, clarifying that refunds or replacements are only applicable when items or services have problems not when a consumer simply changes their mind. In Ethiopian Airlines vs Competition and Consumer Protection Commission, the Tribunal agreed with the Commission that an additional payment demanded by Ethiopian Airlines from a consumer was unjustified, as the actual reason for the consumer paying lesser fares was that the agent had issued tickets with lesser amounts than the base fare. The Tribunal also upheld the decision of the Board of Commissioners in Neer Construction vs Competition and Consumer Protection Commission, that a consumer should be refunded K117,050.00 for incomplete works on her project.

Ladies and Gentlemen,

The Commission made significant strides in research, policy advocacy, competition, and consumer education in 2024, reinforcing its mandate to promote fair competition and safeguard consumer rights. A key initiative was the preparation of an opinion paper on the Open Electricity Access Policy, which assessed its impact on Zambia’s energy sector. The policy facilitates Independent Power Producers’ (IPPs) access to the national grid, fostering competition and private sector participation. While the policy offers benefits such as improved efficiency, lower electricity costs, and enhanced renewable energy adoption, the Commission raised concerns about possible market foreclosure, dominance abuse, and pricing transparency. It recommended clear regulatory frameworks, transparent pricing models, and strong enforcement to ensure a competitive energy market.

The Commission also participated in the Africa Competition Forum’s (ACF) study on trade flow patterns and regional value chains in agriculture and agro-processing. Findings revealed Zambia’s reliance on agricultural imports and identified inefficiencies in regional competition, logistical barriers, and restrictive trade practices. The study recommended promoting oilseed production, investing in infrastructure to lower fertilizer import costs, and strengthening competition regulation in key sectors like sugar and fertilizer.

To address anti-competitive practices in the poultry sector, the Commission initiated the Commercial Poultry (Broiler) Market Inquiry, examining the value chain from breeding stock to pricing structures. Supported by the Shamba Centre and CCRED, the inquiry is in its final drafting stage, with completion expected in the second quarter of 2025.

Additionally, the Commission commemorated World Consumer Rights Day on March 15th, 2024, under the theme “Fair and Responsible Artificial Intelligence for Consumers.” Activities included a virtual engagement with students, a press briefing, and an exhibition at Levy Junction Mall in Lusaka. The CCPC school clubs, with over 300 active clubs nationwide, continue to be instrumental in educating young consumers and fostering a culture of fair trading and consumer protection.

Institutional governance and development remain crucial to our operational success. The Commission conducted nine provincial and four head office internal audits, reinforcing controls and financial oversight.

As the Commission moves forward and looks into 2025, it remains committed and resolved to enhancing market regulation, strengthening stakeholder collaboration, and safeguarding consumer interests and traders alike. The Commission also encourages the public to come forward to report any suspicions of unfair trading, abuse of dominance, cartels, or any other anti-competitive conduct that may distort fairness in various markets.

As I conclude, allow me to extend my gratitude to the Government, Board of Commissioners, regulatory partners, industry stakeholders, the press, and the public for their continued support in promoting a fair and transparent marketplace.

Mrs. Eunice Phiri Hamavhwa

Memory Phiri