Shell, Engen merger threatens fuel supply monopoly
Friday, November 24, 2023 | 1390 Views |
Shell Filling Station PIC: MORERI SEJAKGOMO
The Competition and Consumer Authority (CCA), a government body overseeing anti-competitive practices, has expressed reservations about the merger, pointing out the dominant market share of the two companies in the country's energy landscape.
According to CCA officials, the unhindered merger of Vivo Energy and Engen Botswana could lead to unprecedented market power, posing a threat to healthy competition in the fuel sector.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...