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Business Reporter
The National Bakers’ Association of Zimbabwe last week signed a compliance agreement with the Competition and Tariff Commission in a move to foster compliance and competition laws within the baking industry.CTC assistant director (competition) Mr Benjamin Chinhengo confirmed the agreement.

“We have since realised that the baking industry is one of the most competitive sectors of the economy and sometimes there is infringement of the competition law. There are many companies that fall under the bracket of National Bakers’ Association of Zimbabwe so we saw it fit that they should sign a compliance agreement with us,” said Mr Chinhengo.

“We are looking at addressing issues to do with price fixing.”

Mr Chinhengo said the agreement shapes a way forward and is the beginning of a new trajectory in terms of fostering and promoting competition in the baking industry.

National Bakers’ Association president Mr Givemore Mesoemvura confirmed the signing of the compliance agreement.

“We are happy that we are closing this sad chapter, a lot could have happened in the past either by omission or commission but the important thing is that the chapter is now closed,” said Mr Mesoemvura.

Bread making concern Innscor Africa last year was fined $3,1 million for unfair competition practices.

The allegations came from Innscor’s acquisition of a controlling stake in the country’s largest miller, National Foods Limited.

Innscor increased its shareholding in Natfoods to 49,9 percent from 36 percent between 2003 and 2011.

The company also subsequently reduced its shareholding to 37 percent after disposing of 11 percent for $11,7 million to Tiger Brands of South Africa in 2011.

In May last year, Innscor’s bread making subsidiary Baker’s Inn was accused for employing “dirty tactics” in its fight for market dominance in the baking industry.

Accusations levelled against the bread maker include using the same corporate colours for bread packaging as that of rival company Lobel’s Bread, which is reportedly confusing consumers, in addition to refusing to retail Lobel’s bread, in its Spar supermarkets.