Competition and regulation of the sugar industry in COMESA
- Jun 30
- 1 min read
Sugarcane is an important crop for COMESA countries, accounting for 52% of African sugar production and 45% of African exports. Given the
A recent study by the Centre for Competition, Regulation and Economic Development (CCRED) and the COMESA Competition and Consumer Commission examines competition in the sugar industry at the national and regional level with a focus on Eswatini, Kenya, Malawi, Mauritius, Zambia, and Zimbabwe.
It finds that:
The sugar milling level of the value chain is highly concentrated with quasi-monopolistic markets in Malawi, Zambia, Zimbabwe and Eswatini.
While the domestic markets are highly concentrated, companies face fierce competition at the regional level. This is reflected in the price differences between the domestic and regional markets.
Sugar prices in most countries are substantially above reasonable levels.
The price differences between countries is due to a lack of competition (dominant companies have price-setting power) and government regulation (price regulation and non-tariff trade restrictions).
