2.0 BACKGROUND 2.1 The formulation of this Competition Policy was preceded by an Economic Mapping Survey that took into consjderation factors such as: the policy's Iikely imp ct on unemployment; the iricreasing dominance of foreign companies in the Botswana economy; the heed to safeguard .and promote the growth and development of· citizen-oWned, small and medium enterprises; and other Government policy initiatives such as the diversification of the economy. ' 2.2 The Economic Mapping Report revealed, inter alia, that th re is market dominance in the meat industry, the cement industry, the sugar industry, beverages, mining and the motor vehicle distribution sectors. Firms in these sectors enjoy substantial market power where tendering for public procurement may be open to collusion amongst bidders in their respective 'markets. Market dominance or the possibility that it could be created and subsequently abused is a key consideration 'in the design and application of a competition policy and its related legislation. 2.3 The survey also pointed out that there is a rapid increase in the number of supermarkets and chain stores and a rise in franchising as well as the proliferation of forms of distance selling, which exclude local firms. 2.4 There exists regulation of market entry that constitutes obstacles to competition in some sectors such as utilities and telecommunications. For example, Section 4 of the Electricity Supply Act [CAP 73:01] gives , precedence to the interests of the Botswana Power Corporation. 2.5 ' "The Legislative Inventory of Botswana Laws Relevant for a Competition Policy" concluded that almost every piece of legislation relating to or affecting business activity has some bearing or impact on competition. Therefore, the envisaged formulation of the Competition Law will take cqgnizance of this fact. 2.'6 The Competition Policy has been formulated as a strategy for enhancing Botswana's ability to promote free entry in the market place by investors and all firms, irrespective of their size; the attraction of both domestic and foreign investment flows; innovation and transfer of technology from intellectual property rights-holders; unfettered competition; acceptable business behaviour and conduct; fair business practice; efficiency; competitiveness; and consumer welfare. , " .; ;.; 2