ICN / WORLD BANK GROUP HONOURS CFTC FOR INFLUENCING REFORMS IN CREDIT REFERENCING

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The International Competition Network (ICN) has again recognised the Competition and Fair Trading Commission (CFTC) for the role it played in influencing reforms in the credit referencing market in Malawi.

Making the announcement on the results of the 2015 Competition Advocacy Contest, the World Bank Group, said the CFTC was one of the 18 competition authorities to be recognised out of the 43 competition authorities that participated in the contest.

Commenting on the recognition, CFTC Executive Director Charlotte Wezi Malonda said she was excited that reputable international competition authorities including the World Bank Group continue to acknowledge the outstanding work the Commission was doing in creating a competitive and fair market for all.

Said Malonda:

“The prestigious ICN / World Bank Group competition advocacy award is a highly sought after recognition by Competition authorities all over the world. We are greatly humbled to receive such a major award for the second year running. We are indebted to the government for its continued support to our work".

Credit Referencing, which is a new and fast growing industry in Malawi, provides credit profiles for borrowers. Because this information helps financial lending institutions to manage the risk of extending credit to borrowers, credit referencing firms contribute to lowering the cost of credit which in turn increases access to loan facilities for poor people.

As a result of the Commission's intervention, in 2015, Parliament amended the Credit Reference Act to allow banks to provide client information to credit reference bureaus without taking a risk of lawsuits. This has opened up the market to competition.

In 2015, the World Bank recognised the role the CFTC played in promoting pro-competitive reforms that foster growth and reduce inequality, specifically in the sugar industry.

Notes for Editors

1. CFTC is an autonomous agency of the government mandated to regulate, monitor, control and prevent acts or behaviour which are likely to adversely affect competition and fair trading in Malawi.
2. The CFTC is established under the laws of Malawi to enforce the Competition and Fair Trading Act and the Consumer Protection Act. It is dedicated to improving the efficiency of Malawi’s economy for the benefit of its consumers and all its people. This is done in four ways:

• • Monitoring of mergers and acquisitions of companies.
  • Taking corrective action against abuse of dominance.
  • Prohibiting anti-competitive practices by enterprises against each other.
  • Taking corrective action against enterprises that create unfair trading conditions for the consumer.

     3. The winners and honorable mentions of the 2015-2016 Competition Advocacy Contest were selected by the following panel: 

• • Eleanor Fox, Walter J. Derenberg Professor of Trade Regulation, New York University School of Law
  • Martha Martinez Licetti, Lead Economist and Global Lead Competition Policy, Trade and Competitiveness, World Bank Group
  •   Jose Guilherme Reis, Practice Manager, Trade and Competitiveness, World Bank Group
  • Cecilia Sager, Lead Private Sector Development Specialist, Trade and Competitiveness, World Bank Group
  • Mariana Tavares de Araujo, Senior Partner, Levy & Salomão Advogados

 

Contacts for the Press Release

Innocent Helema

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