The nature of competitive rivalry, and the power and interests of large firms and their owners, is at the heart of how countries develop. Large firms shape the economy as these firms can make the investments required in productive capacity, provide the upstream inputs and services required by smaller businesses and, in many areas, are also the main routes to market. At the same time these firms tend to have market power if competition between them is weak. In crude terms, it is critical whether these firms are able to focus on extracting rents through market power, or whether the returns reward their effort, creativity and entrepreneurship. Competition authorities and economic regulators are critical institutions in restraining the market power of firms while at the same tie taking into account the need to incentivise investment.
The book maps out key issues in competition through four key industry studies across Southern and East Africa. It considers the nature and extent of market power, the development of large firms, their production, investment and the prices of products across countries. This takes into account the work of competition authorities in the different countries and the implications of industrial policies. The concluding chapter draws out critical implications for competition, regional integration and economic development. This fills a big gap as there are no similar publications relating to this important topic.
Chapter 1: Competition and economic development in Southern and East Africa
Chapter 2: Regional cartels and competition in the cement industry across Botswana, Kenya, Namibia, South Africa, Tanzania and Zambia
Chapter 3: Agricultural development, competition and investment: the case of sugar in Kenya, South Africa, Tanzania and Zambia
Chapter 4: Competition, agro-processing and regional development: the case of the poultry sector in South Africa, Botswana, Namibia and Zambia
Chapter 5: Regulation and rivalry in transport and fertilizer supply in Malawi, Tanzania and Zambia
Chapter 6: Conclusion: implications of competition for inclusive growth in Africa
About the authors