AMSCZ bemoans cartels in mining supply chain

By KENNEDY MUPESENI –
CARTELS in the mining supply chain are affecting business for local suppliers and contractors, Association of Mining Suppliers and Contractors  of Zambia (AMSCZ has observed.
The association has since appealed to statutory bodies like the Competition and Consumer Protection Agency (CCPC) to come in and arrest the situation.
In a contribution during a CCPC stakeholders’ workshop in Kitwe, AMSCZ president Augustine Mubanga said abuse of exclusive dominance was affecting local suppliers and contractors in the country.
“There is a tendency by firms dealing with the mines of engaging equipment agencies who are called Original Equipment Manufacturers (OEMs) who have agencies in the country,” Mr Mubanga said.
He narrated that if a supplier or contractor goes to South Africa to look for quotations when a supplying opportunities arises, they were being referred to agencies back in the country who might be interested in bidding for the same opening.
This was putting local suppliers in a fix as they tend to lose business along the way due to sole trader relationships agencies were having with OEMs.
“This exclusivity, principal agency relationship or sole distributor arrangement is affecting our business because the same agencies want business from the mines,” he said.
Mr Mubanga said that trade treaties that Zambia had been singing with countries were not helping the industry.
“For example most South Africans have been  dominant players in our economy  whose firms are controlling the region in terms of trade, we don’t have power to apply the same rules,” he said.
CCPC northern region chief investigator Masauso Phiri promised that the commission would continue working with firms to find lasting solutions to the issues which border on competition.
“We are keen to listen to submissions from the industry, we are ready to enforce the competition and consumer protection laws and  where concerns border on policy it would not hesitate to make submissions to Government for it to consider making necessary changes,” Mr Phiri said.