How competition law & policy can empower African SMEs

A report by the Shamba Centre illustrates how the extreme concentration of food and agricultural markets in Africa is driving up food insecurity and poverty, harming small producers, informal businesses, and consumers alike. Competition laws and policies need urgent reform to empower small agricultural businesses and farmers in Africa and thus enable the transition towards more inclusive and sustainable agri-food systems. Global market concentration hampers productivity, investment, and innovation, favouring large firms over micro, small, and medium enterprises (MSMEs).

This report reviews the state of concentration and competition in agriculture and food markets and the consequences for producers and MSMEs in Africa; undertakes a situation analysis of the state of competition law and institutions in Africa; reviews the actions taken by African competition institutions to date; and sets out a new agenda for strengthening competition regimes to empower African food producers and agricultural enterprises to achieve sustainable agri-food systems.

It finds that almost half the countries in sub-Saharan Africa do not yet have competition laws or institutions in place (22 out of 48). As a result, Africa is more vulnerable to the harms of market concentration than other continents. Dominant firms enjoy a relatively higher concentration of market power given that the economies are generally smaller and less developed. 

For further information:

• Read the full report

• Editorial in Devex by the Shamba Centre