Botswana’s top insurers are under investigation for alleged price-fixing and market abuse, but stalled court processes at the non-functional Competition and Consumer Tribunal are delaying justice
GAZETTE REPORTER
Botswana’s leading insurance companies are under intense scrutiny as the Competition and Consumer Authority (CCA) struggles to advance long-pending cases over alleged anti-competitive practices, including price fixing and market abuse.
During the 2024/25 financial year, the CCA revealed that delays in litigation are undermining its efforts to hold insurers accountable. Case CCT/A/01/2023 I-CCA v Botswana Insurance Company & others has been mired in procedural delays largely beyond the Authority’s control.
The Competition and Consumer Tribunal, responsible for adjudicating such cases, has been non-functional since September 2024, when the contracts of most tribunal members expired. As a result, ongoing cases have stagnated, and no new cases have progressed, the CCA said.
ALLEGATIONS AGAINST MAJOR INSURERS
The matter dates back to the 2023/24 financial year, when the CCA investigated major players including:
Bryte Insurance Company Botswana (Pty) Ltd, Bryte Risk Services Botswana, Hollard Life Assurance Company of Botswana (Pty) Ltd, Old Mutual Life Insurance Company (Botswana) (Pty) Ltd, and Botswana Insurance Company Limited (BIC).
According to the CCA, a four-year investigation found that these insurers allegedly abused their market dominance by: engaging in price-fixing, dictating hourly labour rates charged by motor vehicle panel beaters, and requiring panel beaters to source parts exclusively from nominated suppliers.
If proven, such practices could have far-reaching consequences for Botswana’s insurance sector and for consumers who rely on fair competition.
JUSTICE DELAYED
“The Authority has completed its investigations and referred the case to the Competition and Consumer Tribunal for prosecution,” the CCA said. However, with the tribunal inactive for several months, justice remains delayed, raising concerns over the enforcement of Botswana’s Competition Act and the capacity of regulatory institutions to curb anti-competitive behaviour.
RISK TO MARKET INTEGRITY
Prolonged delays in prosecution could embolden other dominant players in Botswana’s financial services sector, potentially undermining market integrity and consumer confidence.
Despite these challenges, the CCA reiterated its commitment to pursuing these cases once the tribunal becomes fully operational. “Corporate dominance and anti-competitive practices will not escape scrutiny indefinitely,” the Authority said.
“The CCA has faced delays in litigation mainly outside its control; one of the delays being that the tribunal has not been functional since September 2024 when contracts for most members ended. Therefore, ongoing cases have been pending since then and no action has been taken on new cases that have been registered,” the report notes.