WORLD CONSUMER RIGHTS DAY CELEBRATIONS

WORKSHOP REPORT

26 March 2013

Compiled byZimbabwe Economic Policy Analysis and Research Unit (ZEPARU)

For theConsumer Council of Zimbabwe (CCZ)

Report on the World Consumer Rights Day Celebrations held on the 26 th of March 2013 at Meikles Hotel, under the theme; “Consumer Justice Now!”

INTRODUCTION

The World Consumer Rights Day was first observed on 15 March 1983, and has since become an important annual event for consumer movements across the globe. The World Consumer Rights Day was this year commemorated under the theme “Consumer Justice Now!”. This is in line with the United Nations Guidelines for Consumer Protection, adopted in 1985 and revised in 1999, which proposed a list of objectives also known as ‘legitimate needs’ which outlines basic consumer rights including the right to be heard; right to information; right to safety; right to choose; right to consumer education; right to consumer redress patterns and promotion of economic interests of consumers.

To commemorate, the World Consumer Rights Day, the Consumer Council of Zimbabwe (CCZ) convened a half-day workshop on the 26th March 2013 at the Meikles Hotel in Harare. The celebration was attended by a number of participants including government officials, captains of industry from the financial, telecommunications and energy sectors and other organisations. The event was sponsored by a number of local organisations, including CBZ and Tanganda, among others.

OPENING AND WELCOME REMARKS

The welcome remarks were given by Ms Rosemary Siyachitema, the Executive Director of the CCZ. She started by acknowledging officials from the Consumer Action Clubs, the Ministry of Industry and Commerce, the Bankers Association of Zimbabwe (BAZ), the Depositors Protection Corporation (DPC) and representatives from the various organisations who were present.

In her remarks she highlighted that consumers are now being relegated to the end of the queue by industrialists despite the fact that business is driven by consumers. She stressed that the objective of the workshop was to provide a forum where key issues affecting consumers could be discussed. She noted that, lack of dialogue between service providers and consumers has resulted in a paternalistic relationship in which service providers decide on behalf of consumers. Thus there is need to understand consumer needs in order to avoid making wrong decisions about consumer’s choice. To achieve this there was need for business, consumers and policy makers to come together and deliberate issues affecting consumers. This was the platform that the

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workshop wanted to give an insight into what consumer needs so as to tailor make consumers choice.

She highlighted the need for tailor made consumer legislation and laws that translate into policies that will protect consumers in Zimbabwe. Of note was that the consumer movement in Africa for long have been learning about consumer protection from Zimbabwe which unfortunately does not have a consumer protection law. This is an embarrassing situation for the country, hence the need for consumer justice now in line with United Nations Guidelines on consumer rights of which the country is a signatory.

Some of the guests who attended World Consumer Rights Day

Session 1 Chair: Ms Rosemary Mpofu, Deputy Director, CCZ

The Road Map to Consumer Protection Law in Zimbabwe: Progress, Hurdles and Timeline, by Mr Murombedzi on behalf of Hon Welshman Ncube, Minister of Industry and Commerce

In his presentation, Mr. Murombedzi emphasised that the World Consumer Day Celebrations is an acknowledgement that consumers exist and that the exportation of goods and flow of investment in the economy is because of the consumer. He highlighted that consumers need justice in the form of legislation to protect them. He acknowledged that Zimbabwe is a signatory to the United Nations Charter on Consumer protection, and is also cognisant of the recommendations by the Consumer Regional Office of Africa - Dakar, Senegal 1992 and Kadoma, Zimbabwe 1992. The country is also guided by the Southern African Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA) competition guidelines and regulations devoted to consumer protection. He pointed out that a number of African countries have enacted consumer protection laws such as South Africa, Malawi, Zambia and Botswana.

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He alluded to the fact that Zimbabwe does have consolidated consumer protection laws but the laws are scattered across various ministries. In this regard he felt that there is need for a paradigm shift and development of a new holistic law, that is user friendly and embraced under one consumer protection law. This consumer protection law is supposed to be a law designed to protect consumers against improperly described, damaged, faulty, and dangerous goods and services as well as from unfair trade and credit practices whilst engendering mechanisms for redressing consumer prejudices. Consumer protection needs to be linked and guided by consumer rights (that is, the right to basic needs, safety, be informed, choose, consumer education, redress, a healthy environment and representation).

He further gave a preview of consumer protection in Zimbabwe and stressed that the Consumer Protection Act has been on the cards since 2010. The draft bill was crafted in 2011 and the principles were sent to the Attorney General’s office. Mr Murombedzi indicated that the Draft Bill is back with the Ministry of Industry and Commerce for further scrutiny and correction. Thus the Ministry is currently consulting with the key stakeholders on the relevance of the Bill’s contents and structure to enhance ownership particularly with consumers. The Government of Zimbabwe is committed to making sure that the Act prescribes to the United Nations Guidelines on consumer protection.

Mr Takawira Murombedzi, Deputy Director of Consumer Affairs, Ministry of Industry and Commerce

Challenges

Mr Murombedzi highlighted that the major challenges affecting the enactment of the consumer protection law in Zimbabwe is the time factor, that is, capacity to meet the deadline. The Ministry works hand in hand with the Attorney-General’s Office and other relevant stakeholders to come up with the Act hence the delays in the finalisation of the act.

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He stressed that it takes time to have the draft Bill pass through the Cabinet Committee on Legislation before being recommended to Cabinet for further deliberations. It also takes time for the Bill to pass through both Houses of Parliament as it takes three readings in the Lower House of Parliament and another three readings in the House of Senate and will finally be accented by the President.

Way Forward

On the way forward he reiterated that the Ministry of Industry and Commerce will have to send the Bill back to the Attorney General’s Office after taking into considerations the initial comments. Stakeholders meetings would be conducted after the Bill has been accepted by the Attorney General’s Office for buy in by the public. The Bill will then be submitted to Cabinet, then Parliament and finally Presidential accent so that it becomes an Act of Parliament.

In conclusion, he noted that the last decade has seen consumers being taken for granted due to the capitalism way of doing business which he described as exploitative, hence the proposed Act seeks to address consumer’s plight and strike a balance between consumers and producers.

What Consumer Protection Mechanisms is in Place to Protect Depositors, by Mr W Mandizvidza, DPC Mr W Mandizvidza gave a brief history of Deposit Insurance schemes in the world, highlighting that there are over 100 schemes in the world and about 9 in Africa. The objective of setting up such insurance scheme was to protect consumers in the financial sector He went on to define deposit insurance as a deposit guarantee scheme which ensures that depositors are protected and contribute to financial stability. The DPC scheme was introduced in Zimbabwe in 2003 in response to a number of bank failures, with most depositors losing out when banks collapsed due to the absence of an explicit deposit scheme and government inability to chip in and repay the depositors.

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Mr W. Mandizvidza of Deposit Protection making his speech

The DPC was set up for the protection of small depositors through the immediate disbursement of interim payments whilst awaiting liquidation, enhancing people’s confidence and guaranteeing systematic stability in the financial sector. This incentivises depositors to put their money in banks thus encouraging a culture of saving. The setting up of the Deposit Protection Scheme enhances competition in the banking sector given that, if all banks are insured; depositors will choose the bank to bank with based on stability. He also highlighted the role of DPC in encouraging financial inclusion by providing protection to small savers.

Currently the DPC has a cover of US$500 per depositor per bank and thus the DPC has a legal obligation to pay depositors up to the covered amount. Currently it is trying to cover at least 90% of depositors. To date the DPC has paid compensation to depositors of four institutions and currently reimbursing Royal Bank depositors for which 97% of depositors have been paid. He highlighted that membership to the deposit insurance scheme is automatic as one does not have to pay any premium to the DPC but institutions pay on their behalf. In conclusion Mr Mandizvidza stated that having a deposit insurance scheme clarifies government obligation to BAZ president depositors and thus the DPC will continuously review its mandate to provide protection to vulnerable members of the society.

Financial Consumer Protection in the Banking Industry, by Mr George Guvamatanga, President, BAZ

Mr Guvamatanga highlighted that he had attended a number of fora where calls for more loan extensions were made but not much is being said about depositors. Hence he posed a question

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about what is being done for the people who are bringing in their money to the banking sector since consumer protection in the banking sector is still in infancy. Mr Guvamatanga posed another question on whether the banking sector is providing the banking public with information that is easy to comprehend and whether there are avenues for quick redress on failure to provide services to the banking customers. He highlighted that not enough education and awareness campaigns are being done to the banking public on how certain banking products can be used. He made reference to the use of plastic money where banks are not providing their clients with education on the use of automated teller machines (ATMs) hence fraudsters are taking the opportunity to steal from bank clients, without recourse or compensation for losses arising from these frauds. Concern was raised that banks are not educating their consumers well on the use of ATMs and privacy of use.

Mr George Guvamatanga, BAZ president

Furthermore, he noted that consumer protection requires that customers have easy access to their bank information but this has not been the case in Zimbabwe as banks do not provide regular bank statements. Another issue of concern raised by the BAZ president was the use of abusive debt collection and recovery systems which are not ethical. The use of third parties to collect debts has to be spelt out on the inception of a loan contract between the bank and its clients. Thus there is need to clarify certain clauses in the debt recovery and the need to adhere to them.

Mr Guvamatanga further called for the clarification of roles between lenders and the borrowers in credit provision. He highlighted the illegality of credit provision to bank customers beyond set limits on the amount that one can be granted but this is being disregarded. Most banks are lending to customers beyond their ability to pay, thus banks are selling to their customers products that are not appropriate for them. Thus the absence of a Credit Reference Bureau is one of the challenges inhibiting the provision of appropriate products and protection to financial consumers. One of the major challenges highlighted was poor corporate governance practice.

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Mr Guvamatanga highlighted that, the current code of conduct in the banking sector put much emphasis on the conduct between banks, whilst excluding the banks’ conduct towards consumers through service provision.

In light of these challenges, the BAZ is working closely with the Ministry of Finance and the Reserve Bank of Zimbabwe (RBZ) to have the banking sector code of conduct reviewed to cater for the relationship between banks and their clients and also provide provisions for redress. Mr Guvamatanga stressed that in the absence of a complaints recording mechanism in the financial sector, there is likelihood of the reoccurrence of consumer rights violations, hence there is need to establish such a system so that the reoccurrence of similar complaints is minimised. However, to ensure that in the event that such a mechanism does not occur there is need for a third party to redress the issue hence advocating for the establishment of the office of the ombudsman.

Access to Justice and Consumer Protection for Vulnerable Consumers in the Health Industry, by Mr Chengetedzai Gota, Inspector, Health Professions Authority (HPA)

Mr Chengetedzai Gota gave an overview of the HPA in Zimbabwe. He pointed out that the HPA is a health professions regulatory body which was established following the repealing of the Medical, Dental and Allied Professions Act (Chapter 27:08) and disbandment of the Health Professions Council (HPC) on 30 June 2001.

The major responsibilities of the HPA are the registration, control and regulation of services provided through carrying out inspections on all health institutions throughout Zimbabwe. Mr Gota, pointed out that the Authority is the umbrella body for the seven Health Professional Councils which regulate the activities of health practitioners in Zimbabwe.

Before the formation of the HPA, there was the Health Professions Council (HPC) which stood for the interest of the service provider only. Thus the interests of consumers (the patients) were neglected and thus the consumer had no voice as he/she was not represented. The HPA made sure that the consumer voice was represented in the new Act. Mr Gota stressed that the role of regulation in the medical profession is to make sure that people join the health profession not to kill people but to make consumers better, hence the need for strict controls.

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Mr Chengetai Gota, Inspector HPA

The HPA protects the interest of consumers by providing a redress and dispute resolutions mechanisms, carrying out inspections on health facilities to ensure that service providers set up and operate health facilities that do not harm consumers but comply with set standards on health service provision. He emphasised that the role of the HPA in providing consumer justice cannot be underestimated, as it is there for the needs and expectations of the consumer.

PLENARY DISCUSSION

During the plenary discussion, the following were raised:

Consumers become disappointed when definitions being given about deposit insurance schemes are partial definitions. Why should the Deposit Protection Scheme guarantee part of the deposit? It is the poor who suffer because of bank failures, but the DPC guarantees only part of the deposit as in the definition.

There is need for the consumer law to be enacted as a matter of urgency, preferably by year end?

It is high time the Ministry of Industry and Commerce educates the consumer about the scattered consumer protection laws in the various Ministries.

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What is the Ministry of Industry and Commerce doing to address the capacity constraints at the Attorney General’s Office to fast track the consumer protection bill into law?

Do we have enough measures to ensure that depositors are protected?

Despite consumers having the right to information, there is no information available to depositors about the health of banks and other financial institutions.

To what extent are the patients in the country conversant with the Patient Charter in the Health Sector?

PLENARY RESPONSES

DPC

On the DPC, it was concurred that, the definition of the deposit protection scheme is generic. In some instances the payment of deposits will depend on the size of the fund, the bigger the fund the larger the payout. He noted that issues of repayment have to do with capacity of the fund. Ideally the fund tries to compensate at least 90% of deposits. But there are challenges being faced by the fund for it to be able to pay full compensation.

BAZ It was urged that vulnerable groups of the society (widows, children and the poorest in

society) should be protected and not corporations because they have the capacity to make informed decisions because most of them have capacity to employ the best brains. It was highlighted that there is need to review who should be provided with protection, hence certain categories especially corporates should not be protected because they have capacity to make informed decisions.

It was also highlighted that the issue between banks and mobile network operators has to do with inter-compatibility. Banks do not have problems with new products coming on the market. They also welcome competition but the problem is how banks connect to mobile network operators’ platforms and vice-versa.

Pertaining to the disclosure of banks financial status, the responsibility to inform the public about the health of financial institutions lies with the Government through the Monetary Policy Statements of the RBZ. The Central Bank is strengthening the safety of banks through promulgating new capital requirements for the banking sector.

On bank charges, it was highlighted that there is a Memorandum of Understanding between the Ministry of Finance, the RBZ and all banks. He also indicated that currently all banks are in compliance and that the measure will take away about US$40 million

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from banks income. However, it was reiterated that the current bank charges reflect the structure of the economy in which they are operating and also hoped that other players in the economy will cooperate and reduce costs in the economy.

Ministry of Industry and Commerce

On the timeline of the Draft Consumer protection Bill, it was indicated that the Ministry is eager to see the Consumer Protection Act enacted as it was promulgated since 2010. It was also indicated that the Government has a way of doing things (in government one has to think inside the box) since there are structures that have to be adhered to before the Bill comes into effect. Thus the Bill has to go through the Attorney General’s Office, and therefore delays are bound to happen since over 30 Line Ministries channel their Bills to the Attorney General’s Office.

On capacity constraints, it was highlighted that it is not capacity constraints in the Ministry of Industry and Commerce but in the Ministry of Justice and Legal affairs hence the function of the Public Service Commission which handles vacant posts in Government Ministries. However, it was noted that it was the Treasury’s directive to freeze recruitment which resulted in many vacant posts.

Responding to the issue of consumer education on the scattered laws in various ministries, he stressed that it is difficult to carry out consumer education on acts that are being administered by other Ministries because they do not have the mandate but can coordinate the task.

The HPA indicated that the responsibility of publicising the Patient Charter lies with the Ministry of Health and Child Welfare through its education department.

Session 2 Chair: Mr Reuben Gwatidzo, CCZ

Consumer Justice in Access to and Provision of Essential Utilities and Services, by Councillor Thomas Muzuva, Harare City Council

The Honourable Councillor started by highlighting the mandate of Local Government Authorities, which is the provision of services to residents such as health, education, roads and clean portable water. Thus through the consumer rights residents are entitled to these services. The following were highlighted as some of the challenges in service provision:

The provision of clean water is being compromised by lack of investment in plant and equipment and water delivery infrastructure. The councillor highlighted that Harare City Council also provides water to Chitungwiza, Ruwa, Norton and Epworth, but is not receiving payment for services being rendered to these towns.

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In health services, the City of Harare owns 39 poly clinics and has two referral hospitals namely Beatrice and Wilkins Infectious Diseases Hospitals. The Council employs 12 doctors and a number of nurses without grants from government whilst the central government through the Ministry of Education, Sport, Art and Culture pays salaries for teachers employed in council schools.

The provision of road services is tough due to the lack of resources as Zimbabwe National Roads Administration (ZINARA) was given the mandate to collect road levies, a function which was previously carried out by the local authorities. Thus ZINARA collects revenue from road licenses and distribute equally to all City Councils without considering the number of vehicles in different cities and the damage they inflict on the roads.

He noted that the provision of security is being hampered by the fact that the City of Harare municipal police do not have arresting powers and also the absence of municipal courts to try violations of council by laws.

On amenities, the council has managed to secure 27 refuse compactors and is aiming to have a compactor at ward level so that there will be a dedicated refuse collection truck for each ward in the City of Harare.

On housing provision the council has struck a partnership with Infrastructure Development Bank of Zimbabwe to build flats at George Stark in Mbare and also withBill and Melinda Gates Foundation to renovate Matapi flats but was hampered by political interference and had to move the project to Dzivarasekwa.

Councillor Thomas Muzuva giving his speech

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Thus in conclusion, the Councillor highlighted that the Harare City Council has a strategic plan known as “Vision 2020” which aims to make Harare a world class city that focus on customer relations and cooperation, which has clearly defined corporate governance structures. Thus the city also acknowledged that the customer is supreme.

Consumer Justice in the Provision of Electricity in the Energy Sector, by Mrs Gloria Magombo, Chief Executive Officer, Zimbabwe Energy Regulatory Authority (ZERA)

Mrs Magombo gave an overview of the ZERA. She highlighted that ZERA was established in 2011 and took over from the Zimbabwe Electricity Regulatory Commission (ZERC), with a mandate of regulating the procurement, production, transportation, transmission & distribution and importation & exportation of energy derived from any energy source. Its general functions include among other things to regulate and licence players in the energy sector, research and development, increasing the access to and security of energy supply. ZERA’s functions are committed towards the protection of consumers by ensuring that prices being charged are fair to consumers and also establish codes of safety, security reliability and quality standards of energy supply.

Mrs Gloria Magombo, Chief Executive Office, ZERA

Mrs Magombo highlighted the challenges being faced in the electricity sector which include the lack of adequate supply of electricity from the local generating units due to lack of investment in the sector, lack of excess capacity by other power utilities in the region to allow imports hence resulting in high shortfalls that lead to high load shedding and an ageing transmission and distribution network coupled with vandalism of infrastructure. Thus to address issues to do with access and supply of electricity ZERA pointed out that it has licensed new players in the energy sector although it will take some time before the new power generation units are commissioned.

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It was also mentioned that ZERA is in the process of reviewing the electricity pricing methodology to make sure that prices are fair and reasonable to attract new investments in the electricity sector.

In discharging its mandate, ZERA ensures that consumers have a right of access to safe energy, the right to fair prices, consumers are informed of supplier’s intention to terminate services and the right to privacy (that is, not to disclose customers’ information to any unauthorised third parties). However Mrs Magombo stressed that consumer rights come with responsibilities, thus consumers should pay their bills timeously and report theft of electricity through illegal connections.

In her conclusion, Mrs Magombo reiterated ZERA’s commitment to consumer protection through carrying out pricing studies to ensure fair pricing, the creation of a relevant regulatory framework that ensures consumer redress and carrying out consumer education and awareness on energy efficiency and how to conserve and use electricity sparingly.

Consumer Justice in the Telecommunications Sector, by Mrs Hilda Mutseyekwa, Head, Economic Tariffs and Competition, Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ)

Mrs Mutseyekwa gave a brief background of the POTRAZ which was established in 2001 following the enactment of the Postal and Telecommunication Act (Chapter 12:05 of 2000) with a mandate to; license operators, enforce license conditions and promote the development of postal and telecommunication systems in accordance with international standards and public demand. Mrs Mutseyekwa pointed out that the mandate of POTRAZ is to promote the interests of consumers with regards to quality and variety of services.

POTRAZ is charged with the enforcement of the consumer bill of rights in the telecommunication sector in line with the Communication Regulators Association (CRASA) guidelines. The rights enshrined in the Consumer Bill of rights include, the right to affirmatively select their service provider and services, the right to be protected against unauthorized use of their personal information, the right to high quality, reliable service from both service providers and regulators and the right to a fair and prompt redress for problems that may arise. Lastly POTRAZ ensures that consumers have a right to be educated on their rights.

In order to effectively enforce these rights, POTRAZ has the responsibility to license operators and enforce license conditions by setting rules and standards for operators, set tariff proposal and Interconnection guidelines. Thus POTRAZ’s overall goal is to maximize social welfare goal by ensuring the best deal for consumers with respect to quality, choice, availability and value for money.

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In conclusion Mrs Mutseyekwa highlighted that the primary objective of POTRAZ is increasing consumer welfare by empowering consumers with the requisite skills and understanding to enable them to make informed decisions about products and services on offer. POTRAZ also provides information to consumers so as to help to protect themselves against unfair practices and exercise their rights.

Import and Export Regulatory Act: A case for Consumer Justice Now, by Mrs Eve Gadzikwa, Director General, Standards Association of Zimbabwe (SAZ)

Mrs. Gadzikwa challenged the participants on whether consumers are being guaranteed of quality on imports/exports products. Quoting Steve Jobs, she pointed out that if output cannot be measured then it cannot be improved and consequently it cannot compete well on the market. She stressed that because customers are now being exposed to a variety of choices thus producers are no longer guaranteed a market their products. Trading on the international market entails competing against different sets of producers which vary from country to country. Mrs Gadzikwa highlighted that International Standards ensure that products and services provided to consumers are safe, reliable and of good quality. These standards help companies to access new markets, by levelling the playing field for developing countries. Thus Zimbabwe being a member and signatory to a number of bodies and treaties such as SADC, COMESA, and the European Union – Eastern and Southern Africa (EU-ESA) Interim Economic Partnership Agreement, it is bound by certain standard guidelines and requirements.

SAZ Director General, Mrs Eve Gadzikwa

Mrs Gadzikwa gave a brief overview of the SAZ’s mission which is to facilitate the development and use of standards in order to enhance Zimbabwe’s competitiveness and safeguard the welfare of communities. SAZ has internationally certified laboratories to do test and certify products

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that meet international standards. She pointed out that SAZ’s role is to ensure improved standards awareness through training and persuading companies to implement good Quality Assurance practices throughout their processes. She also highlighted that Zimbabwe has no domestic laws which regulates product marking, labelling and packaging. The Government has set regulations and standards only on agricultural imports which are affected by health, Sanitary and Phyto-Sanitary regulations. Thus SAZ has since 2009, been lobbying for NQSR Act Legal Frameworks which will encompass new standards for all imported products in line with its mission to safeguard communities

In her conclusion Mrs Gadzikwa emphasised that SAZ is committed to providing training in standards to manufacturers and also safeguard the welfare of communities by ensuring that they have access to quality products and services.

PANEL DISCUSSIONS

The following issues were raised from the floor: It was mentioned that it is unfair to bill residents who go for weeks without water.

There is a reoccurrence of road accidents corner at Kirkman Drive and Harare Drive. What is the Harare City Council doing about it?

In future the Competition and Tariff Commission should be invited to give participants an insight on issues relating to monopolies and price collusions by players in the same industry.

Concern was raised on how to protect consumers from abuse through mobile communications platforms such as social networks, for example, Facebook, Twitter, Whatsapp etc.

Can a tariff review be expected in 2013?

What is the role of POTRAZ in interconnection and interoperability of banks and mobile network operators?

Why are there no consumer courts in Zimbabwe?

How many companies have been taken to court over the small change issue, selling counterfeit products and the none provision of essential services?

Should local bandwidth cost the same as international bandwidth?

What measures is POTRAZ taking to ensure that people with disabilities access information about consumer rights in telecommunication sector?

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Can POTRAZ explain a situation in which local calls are more expensive than international calls?

Concern was raised that after SAZ has done their tests on products, for example, bottled water they publicise the results of accredited products but other non-approved bottled water are still on the shop shelves. Who is responsible for protecting consumers from this water? Why is it still on the shop shelves and why are the retailers not being penalised for this?

How can standards be enforced in the informal sector and how can standards be enforced on imported goods given that local products undergo stringent standards regulation?

Why are electricity consumers in new locations being made to purchase electricity poles and transformers and then donate these to the Zimbabwe Electricity Transmission and Distribution Company (ZETDC). Is this reasonable?

More security is needed at electricity substations as this is leading to vandalism.

What measures are put in place to protect consumers from loss of property or damage due to power cuts?

Has the ZERA study on energy prices taken into account the pricing structure in the region, for example, South Africa, Zambia and Mozambique?

What is ZERA’s policy on cross subsidization?

PLENARY RESPONSES

Harare City Council

It was pointed out that the Harare City Council is building new water reservoirs to alleviate water problems. it was further pointed out that sinking boreholes is not the solution but building new dams. However, the Harare City Council needs about $400 million for water projects but has received only $144 million from China Export Import Bank. On water quality it was reiterated that Harare water goes to tests and is safe for drinking. The particles in water are actually rust and sand in the pipeline.

On resolving the pothole issue it was pointed out that there are inadequate financial resources to cater for road maintenance after Government gave ZINARA the mandate to collect vehicle licence fees. The Harare City Council will have to reallocate resources from other sources such as rates and water to maintain the road network in Harare.

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As for the junction at Harare Drive and Kirkman Road, a robot has been ordered from China to help ease accidents at the junction. The installation of the robot is part of an agreement between Harare City Council and owners of the Chinese Complex at the junction.

CCZ

The CCZ expressed that the Competition and Tariff Commission actually holds a lot of hearings to investigate incidence of monopolies and cartels. The CCZ has lobbied for a number of Acts and there is a small claims court but is also lobbying for consumer courts that follow the government administrative structures, that is, from district courts to national courts.

On counterfeit goods, the CCZ sits on various boards representing the consumer, thus it is through these boards that they channel issues to do with fake goods on the market.

With regards to consumer awareness, the CCZ runs weekly consumer focus desk in Harare, Bulawayo, Mutare and Masvingo. These have been running in urban areas and CCZ expects to spread them to rural areas. CCZ also holds radio campaigns to improve consumer awareness and protection.

SAZ

It was pointed out that the SAZ is not a regulator and therefore cannot pull products off the shelves but SAZ works in collaboration with regulators such as the Ministry of Health and Child Welfare which is responsible for pulling substandard products off the shelf. On the informal sector the SAZ has taken sector specific approach aimed at raising awareness and training on quality standards and certification.

On imported products SAZ has since 2009 been lobbying for NQSR Act Legal Framework that will encompass imported products to ensure safety of the consumers.

ZERA

Consumers were urged to install surge protectors and to insure household items. It was also indicated that ZERA is finalising a Grid Code so that there is quality supply of electricity which will be adhered to. The energy sector study is taking into account other energy prices in the region and Zimbabwe has the second lowest prices after Zambia.

On cross subsidisation ZERA is guided by the Act, especially the Electricity Act. The authority aims at reducing cross subsidisation. ZERA will review the level of subsidies and seeks ways on

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how to eliminate them. South Africa has certain subsidies which are subsidised by Government but do not cross subsidies whilst other countries have targeted subsidies.

POTRAZ

On instances in which local calls are more expensive than international calls, it was pointed out that it was as a result of promotional activities by Mobile Network Operators and that the situation is temporary. It was also highlighted that POTRAZ is also in the process of reviewing the tariff proposal for data by Mobile Network Operators.

With regards to interconnection between Banks and Mobile Network Operators, it was pointed out that the financial services sector is not within their jurisdiction and thus lies with the Central Bank, hence the banks should liaise with the Central Bank. However it was also pointed out that the POTRAZ has not been active in consumer education due to resource constraint’s but promised that the organisation will increase efforts to raise awareness on consumer rights in the telecommunication sector.

CLOSING REMARKS AND VOTE OF THANKS, MR TONDERAYI MUKEREDZI, CCZ

In his closing remarks, Mr Mukeredzi noted that there is emphasis to have the Consumer Protection law expedited as it is needed urgently. He acknowledged the willingness by regulators to escalate consumer awareness programs so that consumers know their rights. He also highlighted that there are mechanisms to protect consumers but enforcement is lacking. Thus there is need to put these mechanism into force and also strengthen the redress mechanism as people are paying for services but are not being charged for what they consume. He welcomed efforts by BAZ to review its code of conduct and also increase awareness.

He however expressed disappointment on the number of people who turned out for the event as it indicated that people want others to exercise their rights on their behalf.

On behalf of CCZ he thanked everyone for participating in the Wold Consumer Day Celebrations, and expressed CCZ’s gratitude to the sponsors for making the event a success.

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Appendix I: Programme World Consumer Rights Day Celebrations 2013

THEME: “CONSUMER JUSTICE NOW”!

Date: Tuesday 26 March 2013

Venue: Meikles Hotel

Time: 8:30 – 1300 HRS

Time Topic Presenter/Facilitator

08:30-9:00 Registration Esther/EstelleSession Chair Mr Phillip Bvumbe, CCZ Board

Chairman09:00-09:20 Opening & Welcome Remarks

Introductions & Purpose of the MeetingMiss Rosemary Siyachitema, Executive Director, CCZ

09:20-09:40 The Road Map to Consumer Protection Law in Zimbabwe: Progress, Hurdles & Timeline

Hon Welshman Ncube, Minister of Industry & Commerce

09:40-09:50 What Consumer Protection Mechanisms are In Place to Protect Depositors

Mr John.M.Chikura, CEO, Deposit Protection Board

09:50-10:05 Financial Consumer Protection in the Banking Industry

Mr George Guvamatanga, President Banking Association

10:05-10:20 Access to Justice and Consumer Protection for Vulnerable Consumers in the Health Industry

Mr Chengetedzai Gota, Inspector

10:20-10:50 Panel Discussion Session Chair 10:50-11:00 TEA BREAK

Session Chair Mr Reuben Gwatidzo, CCZ 11:00-11:10 The Role of CSR in building responsible citizenry

and ConsumerismMr Jerry Ndlovu, CEO, ZMDC

11:10-11:25 Consumer Justice in Access to and Provision of Essential Utilities and Services

Councillor Thomas Muzuva, Harare City Council

11:25-11:40 Consumer Justice in the Provision of Electricity in the Energy Sector

Mrs Gloria Magombo, CEO, Zimbabwe Electricity Regulatory Authority

11:40-11:55 Consumer Justice in the Telecommunications Sector

Mrs Hilda Mutseyekwa, Head, Economic & Tariffs, POTRAZ

11:55-12:10 Import and Export Regulatory Act: A case for Consumer Justice Now

Mrs Eve Gadzikwa, Director General Standards Association of Zimbabwe

12:10-12:40 Panel Discussion Session Chair12:40-12:50 Summary of Points Raised and Action Points Mrs Rosemary Mpofu,

D/Executive Director, CCZ12:50-13:00 Closing Remarks & Vote of Thanks Hon Siyabonga Ncube M.P CCZ

Board Member 13:00-14:00 Lunch & Departure

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