Stakeholders call for review on fees for threshold for notification to FCC Act amendment

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Mwananchi Communications Limited

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Mr Muhaji suggested raising the threshold for notification to FCC for mergers from $1.5 million (Sh3.45 billion) to $10 million (Sh23 billion).

Dar es Salaam. The Tanzania Startup Association (TSA) and Breakthrough Attorneys have proposed a more than sixth fold increase in the threshold for notification to Fair Competition Commission (FCC) for mergers suggesting that the move will enhance startups' advancement.
The remarks were made on Tuesday, July 19, by the TSA chief executive officer (CEO), Zahoro Muhaji during a breakfast meeting to present the review of the Fair Competition Act 2003 to the startups and Small and Medium Enterprises (SMEs) stakeholders.
Mr Muhaji suggested raising the threshold for notification to FCC for mergers from $1.5 million (Sh3.45 billion) to $10 million (Sh23 billion).
“The move will enhance startups' advancement in the sense that startups and SMEs will be able to join forces and accumulate more resources from one another for expansion,” he said.
He added that they are conscious and appreciative of the Government's role towards an improved business environment, however, still there is a need to address several issues affecting the business specifically for Startups and SMEs.

He further said that, this cannot be achieved at the moment as mergers of a few startups could easily reach the threshold for notification which is set at Sh3.5 billion as provided under Fair Competition (Threshold for Notification of a Merger) (Amendment) Order, 2017.
In his remarks, Reginald Martin, Senior Associate from Breakthrough Attorneys highlighted the need for the exemption of fees to be paid once the startup has reached the notification threshold.
“Companies intending to merge are required to pay fees ranging from Sh25 million to Sh100 million. This is a very high fee for Startups considering startups could be mobilizing resources and skills at the time. Thus, imposing such fees makes it impossible for startups and SMEs to grow or merge”.
Fair Competition Act 2003 was enacted with the core mandate to promote and protect effective competition in trade and commerce, protect consumers from unfair and misleading market conduct, and to provide for other related matt