African Competition Authorities Urged To Make Markets Fairer For Businesses

The African Competition Authorities (ACF) have been urged to strengthen enforcement and ensure that markets provide fair opportunities for businesses, particularly smaller enterprises, as countries seek to promote economic development and expand participation across key sectors.

Speaking at the official opening of the African Competition Forum (ACF) Biennial Conference in Windhoek, Deputy Minister, Jennelly Matundu, on behalf of Minister of Industries, Mines and Energy, Modestus Amutse, Matundu called for stronger competition policies to remove barriers to market entry, protect consumers and create fair opportunities for local businesses, particularly smaller enterprises.

Matundu highlighted the importance of competition policy in shaping economic opportunities, protecting consumers and supporting business growth.

“For households, it can influence the price and quality of food, transport, telecommunications and other essential goods and services. For entrepreneurs, it can determine whether a good idea has a fair chance of becoming a viable business,” she said.

She warned that when markets were not competitive, consumers and smaller businesses could face negative consequences.

“Consumers may pay more, smaller businesses may struggle to earn a living or expand, and economic benefits may become concentrated,” Matundu said.

She further highlighted the need for governments to consider how policies across different sectors affect competition, including industrial development, trade, investment, licensing, procurement and state support.

“We should ask whether they encourage entry, create unnecessary barriers, or could achieve their objective while allowing greater scope for competition,” she said.

Matundu also pointed to the importance of ensuring that local suppliers and smaller enterprises have opportunities to participate in major economic sectors, including mining and energy.

“Turning those into lasting economic participation requires attention to how markets are structured and how businesses gain access to them,” she said.

She further referred to research undertaken by the African Competition Forum on global commodity traders and competition in African food markets, noting the importance of understanding how these markets operate.

“How food markets operate affects livelihoods, business opportunities and the ability of households to meet their basic needs,” Matundu said.

She further highlighted the changing nature of markets through digitalisation and artificial intelligence, calling for stronger cooperation between competition authorities and other regulators to address emerging challenges.

“As policy makers, we must be willing to learn, ask the right questions, and draw on the expertise of those working closely with us in development,” she said.

Meanwhile, African Competition Forum Chairperson and Executive Director of the Competition Commission of Mauritius, Vipin Naug called for stronger cooperation among competition authorities, noting that businesses and markets increasingly operate across national borders.

“An authority may operate within national boundaries, but the markets it examines often do not. Supply chains cross borders. The same firms may operate in several jurisdictions. Digital business models can reach customers across the continent,” Naug said.

“There is considerable expertise within our membership. An authority that has investigated a difficult case, tested a new analytical approach or introduced legislative reform has knowledge that can benefit others,” he said.

Naug further identified digital markets, algorithms and artificial intelligence as areas presenting new challenges for competition authorities, particularly in detecting harmful business conduct and gathering evidence.

“Digital markets illustrate this clearly. Algorithms and artificial intelligence raise new questions about how firms compete, how harmful conduct can be detected, and what evidence authorities need,” he said.

He stressed the importance of clear working relationships between competition authorities and sector regulators, saying cooperation could help address competition concerns while providing businesses with greater certainty.

The Forum developed a technical note on abuse of dominance and merger thresholds for the African Continental Free Trade Area (AfCFTA) Competition Protocol, alongside research covering trade flows, agro-processing, digital platforms and global commodity traders.