Competition in Africa: Insights from Key Industries

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.