Competition Law Prescriptions and Competitive Outcomes Insights from Southern and East AfricaClick here to read the full article online
"This chapter draws on a range of research done in recent years in East and Southern Africa to consider the nature and extent of competition in practice, and the role, if any, played by competition law and policy. It starts with analysis of two commodities, cement and fertiliser, which can be considered the ‘bread and butter’ of competition enforcement. These are relatively homogeneous products with con- centrated markets and high incentives for firms to collude. Indeed, cartels in Southern Africa in cement and fertiliser have been uncovered by competition authorities. Second, I draw on work at the other end of the spectrum in innovative markets for services in telecommunications and finance described under the head- ing of mobile money. East Africa, specifically Kenya and Tanzania, are global leaders in the development of these services. Network effects favour the first-mover implying it can become dominant and wield substantial market power. Third, I reflect on work relating to barriers to entry in South Africa. The chapter draws on the insights from these three areas to identify the main elements of a forward-looking agenda."