Exclusive contracts in Kenya’s beer distribution

Exclusive contracts in Kenya’s beer distribution

Nicholas Nhundu

Efficient distribution is central to competitiveness in the beer industry. In several cases around the world, the proliferation of entrant firms in beer has been obstructed by hurdles in getting products to consumers through the distribution system.

Editor’s note: SADC Competition Authorities sign MoU for cooperation on competition issues

Editor’s note: SADC Competition Authorities sign MoU for cooperation on competition issues

Thando Vilakazi

In May 2016, representatives of the competition authorities from nine Southern African Development Community (SADC) member states met in Gaborone, Botswana to sign a Memo-randum of Understanding (MoU) to cooperate on competition matters. 

Prospects for the East African Community Competition Authority

Prospects for the East African Community Competition Authority

Shingie Chisoro Dube and Anthea Paelo

In 2015, the East African Community Council of Ministers adopted the East African Community Competition (Amendment) bill which provided for the establishment of the East African Community (EAC) Competition Authority (EACCA).

Review of COMESA merger and enforcement activity

Review of COMESA merger and enforcement activity

Maria Nkhonjera and Tatenda Zengeni

Since opening its doors in January 2013 the COMESA Competition Commission (CCC) has seen growth in the number of its merger cases. This growth followed a number of challenges initially faced with the interpretation of certain provisions of the Act, jurisdiction and high filing fees.

An overview of the prominent barriers to entry in South Africa’s retail banking industry

An overview of the prominent barriers to entry in South Africa’s retail banking industry

Nicholas Nhundu

The South African retail banking sector remains highly concentrated with six large banks accounting for more than 90 percent of retail deposits; namely, Standard Bank, Absa, First National Bank, Nedbank, Capitec and Investec.

The role of aggregators in the mobile money industry and related competition issues

The role of aggregators in the mobile money industry and related competition issues

Anthea Paelo

The complexity and range of mobile money-related services provided in various African countries has grown significantly from ‘basic’ money transfer between people with customers storing currency in a mobile wallet via a handset, to include savings and loan products, insurance and bill payments.

Barriers to entry in the South African supermarket industry

Barriers to entry in the South African supermarket industry

Shingie Chisoro Dube and Reena das Nair

This article draws insights from the study of Fruit and Veg City Ltd (FVC), as a successful entrant into the formal grocery retail market, and further considers the growth of independent retailers.

Drawing insights on the Future Life and Pioneer Food Group

Drawing insights on the Future Life and Pioneer Food Group

Lauralyn Kaziboni

In April 2015, Pioneer Food Group (Pioneer), the leading breakfast cereal producer in South Africa, with popular brands such as ProNutro, Weet-Bix and Bokomo Limited announced that it was planning to enter into a joint venture (JV) with Future Life Health Products (Future Life), a scientifically formulated nutrient-dense functional food products company.

Shipping cartel fines in South Africa

Shipping cartel fines in South Africa

Anthea Paelo

In August this year, two shipping companies were fined by the Competition Commission of South Africa for restrictive horizontal practices including; fixing a purchase or selling price of a product or service, dividing markets and collusive tendering in the transport of vehicles, equipment and/or machinery by sea on the route between Japan and South Africa.

Uber: a game-changer in passenger transport in South Africa?

Uber: a game-changer in passenger transport in South Africa?

Shingie Chisoro Dube

The entry of the app-based Uber service into South Africa’s local passenger transport industry in 2013 raises important competition and regulatory issues. Uber is a taxi smart phone application that uses the customer’s smartphone to detect their specific location using the global positioning system (GPS), and instantly connects the customer to the nearest available driver. Uber taxis work in exactly the same manner as traditional metered taxis in that they both take the customer to their intended destination for a metered fee. However, Uber is a technology-driven service that uses a convenient electronic taxi-hailing system to find, book and pay for taxi services. This presents an innovative new technology platform in the local taxi industry.

Reflection on the Coca-Cola bottling merger

Reflection on the Coca-Cola bottling merger

Tatenda Zengeni

The merger between Coca-Cola Sabco’s African bottling operations and SABMiller was recently approved by the COMESA Competition Commission, while it is still under review in some other countries such as South Africa. SABMiller is Coca-Cola’s biggest bottler in Africa with operations in 15 African countries.

Zambia CCPC issues new merger guidelines

Zambia CCPC issues new merger guidelines

Mohlahlego Cornelia Matumba

The Competition and Consumer Protection Commission (CCPC) of Zambia released its guidelines for merger regulation in August 2015. This is important for providing clarity on the process for merger regulation in Zambia and provide the commission and stakeholders with a structured and transparent framework for these assessments.

Multi-firm cartels: Collusive tendering in furniture removal markets in SA

Multi-firm cartels: Collusive tendering in furniture removal markets in SA

Mohlahlego Cornelia Matumba

Firms engaging in a cartel are attempting to increase their joint profits through an agreement to suppress competition among themselves. The harmful effects of cartels are related to the number of firms involved, the size of the affected market, and the durability of the cartel.1 Cartelist often agree on the strategy for pricing, supply to the market or market allocation and they face the critical challenge of coordinating the behaviour of all cartel participants around the agreed strategy. This includes monitoring the behaviour of cartel participants to identify and prevent defections from these collusive strategies and preventing entry or expansion by non-cartel firms.

 

New energy in the region’s fuel market: Puma Energy - Brent Oil merger

New energy in the region’s fuel market: Puma Energy - Brent Oil merger

Maria Nkhonjera

The recent merger in South Africa between Puma Energy and Brent Oil, recently approved by the competition authorities, may change the competitive landscape in regional and South African markets for fuel retail, leveraging Puma’s long-established presence throughout the rest of the region. This article considers the implications of the merger.

 

Editor's Note: Quarterly Review August 2015

Editor's Note: Quarterly Review August 2015

Thando Vilakazi

This quarter has been a busy one for CCRED. In June 2015, CCRED had the opportunity to present our recent research on coordination in regional fertilizer markets at the World Bank and OECD conference on Promoting Effective Competition Policies for Shared Prosperity and Inclusive Growth, in Washington. Several CCRED papers on regional development were presented at the TIPS Annual Forum on Regional Industrialisation and Regional Integration. And, in July, we had the honour of hosting Prof Eleanor Fox from New York University who presented on competition policy and its potential contribution towards achieving the Millennium Development Goals. 

The black industrialists programme in context: the real barriers to entry

The black industrialists programme in context: the real barriers to entry

Anthea Paelo

South Africa has one of the highest levels of income inequality in the world with a Gini coefficient that has remained around 0.65 over the past decade.1 In addition, South Africa’s unemployment rate, using the narrow definition, at 26.4% is very high.2 Much of this has been attributed to the legacy of apartheid during which the majority of South Africans were economically marginalised with few economic opportunities.