The Competition and Consumer Authority (CCA) has unveiled substantial financial difficulties that have obstructed the execution of its Strategic Plan, initiated in 2020. The Authority reported a net deficit of P13 million for the fiscal year concluding March 31, 2024, with liabilities exceeding assets by more than P6.6 million. Furthermore, current liabilities surpassed current assets by P4 million.
In its annual report, the CCA disclosed receipt of P42 million in government funding, accompanied by a commitment letter from the Ministry of Trade and Industry, guaranteeing ongoing financial support. Despite this, financial constraints have substantially impaired the Authority’s capacity to fulfill its mandate effectively. “At the current funding levels, the Authority has not been able to fully implement its Strategic Plan,” the report noted, further stating that operational costs have significantly depleted the subvention.
The Board of Directors is actively negotiating with the ministry to secure additional funding, which is crucial for the Authority to fulfill its responsibilities. As an interim measure, the CCA has adopted rigorous cost-saving strategies to sustain operations. Directors underscored the necessity of aligning expenditure with the available budget, though this approach has offered only limited respite.
Directors also emphasized the government’s crucial role in ensuring the Authority’s continued operations. A formal assurance letter from the Ministry of Trade and Industry confirmed financial support for the upcoming 12 months. This assurance has somewhat mitigated concerns regarding the Authority’s viability as an ongoing entity. Nonetheless, the financial challenges have introduced uncertainty regarding its long-term sustainability, necessitating urgent and collective solutions.
Despite these setbacks, the Authority achieved significant milestones during the reviewed year. It processed 71 merger cases, marking a 31% increase from the previous year’s 54 cases, attributed to the gradual revival of global economic activity. Of these, 58 mergers received unconditional approval, five were approved with conditions, and one was prohibited. This increase underscores the Authority’s crucial role in promoting competition and safeguarding consumer interests, even amidst financial constraints.
The CCA remains hopeful that with adequate funding and effective cost management, it will continue to champion economic equity in Botswana. However, stakeholders are urged to support the Authority’s initiatives to ensure it accomplishes its strategic objectives, which are essential for the nation’s economic stability and growth.
