Business competition is essential to the growth of the economy because its absence leads to poor trade practices which harm the poorest in any particular country, World Bank Group competition specialist Philana Mugyenyi has said.
She said poor business practices and weak competition policies affected the poorest in society because of higher prices for goods.
Ms Mugyenyi said competition was there to protect the poorest from exploitation.
She was speaking at the media training workshop organised by the World Bank the Competition Consumer Protection Commission (CCPC).
Ms Mugyenyi said higher economic growth could be realised only if there was competition among business players.
“Strong competition reduces commodity prices because lack of competition leads to negative effects on the economy and poor households,” she said.
Ms Mugyenyi said competition was important not only for the domestic market but also for the international community where countries were able to get benefit of trading in their products.
She said enforcement of competition law and pro – competition regulations generated savings for consumers, businesses and the Government.
“Competition pressure is very important for the markets because it reduces commodity markets. This is because prices tend to be 10 percent higher in certified markets,” Ms Mugyenyi said.
She explained that consumers were exploited because of lack of competition.
Ms Mugyenyi said competition therefore played a vital role in reducing spending for the poorest households who were mostly affected once prices went up.
She said there was need for more market players to come on board and compete for their market share which would then benefit both their company products and the consumers.