Most countries in Southern Africa are net importers of products from South Africa and are therefore likely to be subject to South African cartels. Imports from South Africa cut across sectors including food, capital equipment, construction materials, energy, plastics and chemical products. Moreover regional markets are closely linked through the presence of South African companies in the rest of the region. This article expands on an earlier article in this Review on the possible impacts of some of the South African cartels on the region, as part of CCRED’s monitoring of competition case developments and the evolution of enforcement in the region.
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.
Anthea Paelo and Pamela Mondliwa
Kenya’s recent competition case against DSTV in the pay-tv industry is only one more in a growing list of complaints relating to exclusive agreements in the industry in African countries. In this particular case, Zuku, a satellite pay-tv provider and competitor to DSTV, approached the Competition Authority of Kenya (CAK) to protest MultiChoice’s (DSTV’s parent company) exclusive rights over content such as broadcasting of the English Premier League (EPL).
The growth of the poultry industry in African countries and its potential for labour absorption has attracted significant investments to the sector. The strategic importance of the sector has also resulted in the proliferation of policies to support local producers in order to gain from the potential for localised growth.
Road transport is the main mode of transport and a facilitator of international and domestic trade in Africa, accounting for between 80 and 90% of passenger and freight transport in the region. It is against this backdrop that the current state of competition and regulation in this sector is assessed.