THE Competition and Tariff Commission targets school uniform monopolies
THE Competition and Tariff Commission (CTC) has revealed that it is engaging the Ministry of Primary and Secondary Education to address the issue of schools that force parents to buy uniforms from them or selected suppliers. This practice is seen as hindering competition and creating barriers for small players.
The issue of schools mandating parents to purchase uniforms from specific sources remains a hot topic, with parents expressing concerns over inflated prices. This has prompted the CTC to intervene, issuing a directive for schools to desist from the practice.
In an interview on the sidelines of the World Competition Day commemorations held in Bulawayo last week, CTC mergers and acquisition assistant director Mr Tatenda Zengeni said the commission received a complaint in 2021, which led to an investigation against Warren Park High School in Harare.
“We found out that they have been contravening the Competition Act and we issued a cease and desist order. However, we found out that this practice is not unique to Warren Park High, but it was also prevalent in the majority of schools in Zimbabwe. So, we have decided to take a holistic approach. We are engaging with the Ministry of Primary and Secondary Education to try and come up with some kind of regulation that will be communicated to schools, directing them to stop engaging in this kind of anti-competitive practice,” said Mr Zengeni
Competition and Tariff Commission of Zimbabwe
He said that the right to choice is one of the principles the commission advocates for.
“Many times, you realise that when you go to those schools that force you to buy school uniforms from their tuck-shops or their preferred suppliers, the price will be excessive, so that is against the tenets of competition. We are hoping that very soon we will reach a point where we agree with the Ministry of Primary and Secondary Education and resolve this issue once and for all,” said Mr Zengeni.
With the growing number of small and medium enterprises (SMEs) involved in school uniform manufacturing, forcing parents to buy uniforms from specific suppliers becomes a barrier to small businesses.
In her presentation during the commemorations, CTC director Ms Ellen Ruparanganda said the CTC also has a mandate to safeguard SMEs and other vulnerable market participants from exploitation by dominant buyers or monopsonies.
She said these dominant players often impose unfair contract terms or offer low prices for goods and services.
Ms Ruparanganda noted that such practices limit the bargaining power of SMEs, subjecting them to low producer prices and leaving them unable to reinvest in their operations.
“Such practices trap these individuals and businesses in a cycle of poverty, keeping them as perpetual small-scale or subsistence producers.
“By addressing abusive conduct by dominant buyers, the commission promotes fair trading terms, enabling small players to grow and contribute meaningfully to the economy, thereby reducing inequality.”-chroncile
