Competition and Regulation for Inclusive Growth in Southern Africa

Total Page:16

File Type:pdf, Size:1020Kb

Competition and Regulation for Inclusive Growth in Southern Africa THE CHAPTERS COLLECTED IN THIS VOLUME address key issues of competition Inclusive Growth in Southern Africa Competition and Regulation for and economic regulation in Southern and East Africa with reference to regional value chains and industries. The contributions locate international debates on competition and corporate power in the critical issue of inclusive growth. There is a particular focus on shaping regional energy markets in order to take into account the implications of climate change as well as the challenges of extending access to affordable energy to low income edited by households and small businesses. Jonathan Klaaren, The book is a critical assessment of the efficacy of the competition and economic regulation framework. Several contributions review the impact of the competition authorities in the Simon Roberts & region and survey the impact of particular interventions in the competition and economic regulation arena. This volume thus accomplishes two hitherto-unfulfilled tasks: examining Imraan Valodia in a single framework both competition and economic regulation and taking a Southern/ East African view in examining these two topics. This book should be widely read since competition and regulation are both distinct but crucial and linked areas of knowledge for the development of the economies of the countries of Southern and East Africa. It provides specific and concrete policy recommendations while also exploring the role of regulatory control in achieving various economic growth Competition and objectives. The book responds to the clear need in the field of competition and economic regulation to develop a body of Africa-based knowledge and literature which originates from the Regulation for experiences of countries in the region rather than an exclusive reliance on international precedent and learnings. The book develops African case studies for both training and knowledge-sharing purposes. These issues are of interest from both an academic and practitioner/businessperson’s Inclusive Growth perspective. The contributions show these issues are particularly relevant in terms of regional economic development where countries in the region often face the same challenges of small, concentrated markets where barriers to entry are especially high and where the resources to enforce against anticompetitive conduct are limited. in Southern edited by Jonathan Klaaren, & Imraan Valodia “THE BOOK IS OF A HIGH CALIBRE, it is very informative and will be useful as Simon Roberts Africa a guide for competition law practitioners, policymakers, economists and university students. The selection of topics is very interesting and focuses on relevant issues common to Southern African countries. One such issue is that of energy which in recent times has become a growing concern as Southern African countries face an energy crisis which threatens economic growth and development in this region.” – Yasmin Carrim, member of the Competition Tribunal of South Africa 978 1 9 2 8 2 3 2 803 ISBN 978-1-928232-80-3 www.jacana.co.za Competition and Regulation Competition and Regulation for Inclusive Growth in Southern Africa Edited by Jonathan Klaaren, Simon Roberts & Imraan Valodia First published by Fanele, an imprint of Jacana Media (Pty) Ltd, in 2019 10 Orange Street Sunnyside Auckland Park 2092 South Africa +2711 628 3200 www.jacana.co.za © Individual contributors, 2019 All rights reserved. ISBN 978-1-928232-80-3 This book is freely available through the OAPEN library (www.oapen.org) under Creative Commons CC-BY-NC-ND 4.0 Creative Commons License. (https://creativecommons.org/licenses/by-nc-nd/4.0/). Cover design by Maggie Davey Layout by Alexandra Turner Editing by Glenda Younge Proofreading by Lara Jacob Set in Bembo 11/14pt Printed and bound by ABC Press Job No. 003537 See a complete list of Jacana titles at www.jacana.co.za Contents List of contributors ...................................................... vii Introduction ................................................................1 1. Growth and development in the cosmetics, soaps and detergents regional value chains: South Africa and Zambia Teboho Bosiu, Farisai Chin’anga and Mwanda Phiri ................. 15 2. Competition policy for the Tripartite Free Trade Area Jonathan Klaaren and Fungai Sibanda ................................ 59 3. Fighting anticompetitive practices in the sugar industry Angella Kachipapa ..................................................101 4. Regional integration in southern Africa: A platform for electricity sustainability Gaylor Montmasson-Clair and Bhavna Deonarain ..................123 5. How rooftop PV can enhance energy security for households across the SADC Shannon Knight and Noxolo Mahlalela .............................173 6. Planning a country’s energy infrastructure: Emerging debates from South Africa and their implications Duncan Lishman, Paul Anderson and Dumakude Nxumalo ........209 v C OMPETITION AND R EGULATION FO R I NUSIVEC L G RWTHO 7. Household tipping points in the face of rising electricity tariffs Angelika Goliger and Aalia Cassim ..................................249 8. Cost reflective price regulation of petroleum: The case for Zambia Deborah Bwalya and Lungisani Zulu ................................271 9. The effects of competition on cement prices and the productivity of cement producers in Ethiopia Tesfaw Wondimu Tefera and Simon Roberts ..........................289 10. Car tel enforcement: Adoption of a leniency programme in Kenya Barnabas Andiva and Edith Masereti ................................321 11. Ov ercharge estimates in the South African reinforcing bar cartel Pamela Mondliwa and Reena Das Nair .............................341 12. Competition assessment in Malawi transport sector Competition and Fair Trading Commission, Malawi .................371 13. Spectr um policy for competition and development: A comparative study of approaches and outcomes in Africa Genna Robb .........................................................395 14. Regulating for the growth of mobile financial services: A case study of Kenya, Tanzania and Uganda Anthea Paelo ........................................................421 15. Pr ocedural innovation in competition law for small economies Rory Macmillan .....................................................449 Conclusion: Building institutions for competition enforcement and regional integration in southern Africa Mark Burke, Tamara Paremoer, Thando Vilakazi and Tatenda Zengeni .................................................487 Index .....................................................................529 vi List of contributors Paul Anderson is a competition and regulatory economist at Genesis Analytics in Johannesburg, South Africa. Barnabas Andiva has an economics background and is at the Competition Authority of Kenya in the Enforcement and Compliance Department in Nairobi. Teboho Bosiu is an economist at the Centre for Competition, Regulation, and Economic Development at the University of Johannesburg in South Africa. Mark Burke is the managing director at development@work and works in Johannesburg, South Africa. Deborah Bwalya is Legal Counsel at Zambian Breweries plc in Lusaka, Zambia. Aalia Cassim is an economist working at the National Treasury of South Africa. Farisai Chin’anga has a background in financial management and is affiliated with the Centre for Competition, Regulation, and Economic Development at the University of Johannesburg in South Africa. vii C OMPETITION AND R EGULATION FO R I NUSIVEC L G RWTHO Reena Das Nair is a senior researcher at the Centre for Competition, Regulation, and Economic Development at the University of Johannesburg in South Africa. Bhavna Deonarain is a researcher in sustainable growth at Trade and Industrial Policy Strategies in Pretoria, South Africa. Angelika Goliger is an economist at Ernst & Young in Johannesburg, South Africa. Angela Kachipapa is a Competition and Consumer Analyst at the Competition and Fair Trading Commission in Lilongwe, Malawi. Fexter Katungwe is a senior analyst in the Competition Division at the Competition and Fair Trading Commission in Lilongwe, Malawi. Jonathan Klaaren is a professor at the School of Law at the University of the Witwatersrand in South Africa. Shannon Knight has a background in competition and regulatory economics, and is a data analyst at PPO Serve in Johannesburg, South Africa. Duncan Lishman is an economist at Genesis Analytics in Johannesburg, South Africa. Rory Macmillan is a lawyer specialised in competition, telecommunications, digital financial services, data protection, privacy and digital identity law, and is a partner in Macmillan Keck Attorneys & Solicitors. Noxolo Mahlalela is a consultant at the Palmer Development Group in Cape Town, South Africa. viii L IST OF CONTRIBUTORS Edith Masereti has a financial economics background and is at the Competition Authority of Kenya in the Mergers and Acquisition Department in Nairobi. Pamela Mondliwa is a senior researcher at the Centre for Competition, Regulation, and Economic Development at the University of Johannesburg in South Africa. Gaylor Montmasson-Clair is a senior economist at Trade and Industrial Policy Strategies in South Africa. Dumakude Nxumalo is an associate at Genesis Analytics in Johannesburg, South Africa. Anthea Paelo is an economist at the Centre for Competition, Regulation, and Economic Development at the University of Johannesburg in South Africa. Tamara Paremoer is Economic Advisor to the Commissioner at the Competition
Recommended publications
  • Skills Development for Inclusive and Sustainable Growth in Eds
    19 Sarvi Technical and Vocational Education and Training: Issues, Concerns and Prospects 19 Maclean · Jagannathan Technical and Vocational Education and Training: Rupert Maclean · Shanti Jagannathan · Jouko Sarvi Editors Issues, Concerns and Prospects 19 Skills Development for Inclusive and Sustainable Growth in Eds. Developing Asia-Pacifi c Focusing on the Asia-Pacifi c region, which in recent years has been the engine of global economic growth, this volume surveys trends and prospects in technical and vocational Rupert Maclean education and training (TVET) with particular reference to achieving inclusive growth and the greening of economies. Underlying the increasing pressure for new models of TVET provision is the rapid pace of technological change, demand for a work force Shanti Jagannathan which is highly responsive to evolving needs and a transforming market place that calls for higher order skills and lifelong learning. Th e book proposes a re-engineered, Jouko Sarvi Editors modernized TVET system that fosters an innovative approach which enhances the employability of workers as well as the sustainability of their livelihoods. Th e book includes contributions from leading policy makers, researchers, and practi- tioners, including those in the private sector in analyzing and forecasting the most ur- gent priorities in skills development. Th e book argues for creative approaches to TVET 1 design and delivery particularly with a view to improving job prospects, and meeting Skills Development the goals of inclusion, sustainable development and social cohesion. Addressing issues such as the chronic mismatches between skills acquired and actual skills required in the work place, the volume proposes diversifi ed approaches towards workforce develop- Asia-Pacific in Developing Sustainable Growth and for Inclusive Skills Development ment and partnerships with the private sector to improve the quality and relevance of for Inclusive and skills development.
    [Show full text]
  • Fostering Inclusive Growth & Promoting Intergenerational Equity
    UNITED NATIONS NATIONS UNIES ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC United Nations Building, Ratchadamnoen Nok Avenue, Bangkok 10200, Thailand Fostering Inclusive Growth & Promoting Intergenerational Equity in an Ageing Asia-Pacific _________________________________ Manuel Mejido Costoya Unpublished report prepared for the Social Development Division of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), Bangkok, Thailand January 2016 Mejido Costoya January 2016 Contents Chapter 1 The Greying of Asia-Pacific 1 Population ageing is rapidly transforming the 2 region Population ageing will pose important 9 challenges to inclusive growth and social equity Demography is not destiny 16 Between breadth and depth 17 Structure of the report 19 Chapter 2 Economic repercussions 20 Countries in the region face different 21 demographic and economic scenarios The intergenerational economy provides crucial 25 insight into the lifecycle needs of older persons How countries reallocate resources to meet the lifecycle needs of older persons varies along the 31 demographic transition The two demographic dividends provide opportunities to achieve sustained growth and 42 greater intergenerational equity Stocktaking 48 Chapter 3 Implications for social protection 49 Social protection is essential for inclusive 50 growth and intergenerational equity Social investments must better target the 55 lifecycle needs of older persons 2 Mejido Costoya January 2016 Disparities between breadth and depth of coverage will
    [Show full text]
  • The Relationship Between Happiness and Economic Development in KSA: Study of Jazan Region
    The Business and Management Review, Volume 9 Number 1 July 2017 The relationship between happiness and economic development in KSA: Study of Jazan Region Hanaa Abdelaty Hasan Esmail College of Business Administration Jazan University, KSA. Theba Academy, Cairo, Egypt Nedra Nouredeen Jomaa Shili College of Business Administration Jazan University, KSA. PS2D Laboratory, Tunis El Manar Key words Happiness, SWB, Jazan, Economic Development, Survey Abstract: It is generally assumed that happiness is a major source of motivation. Though economic growth remains the main goal of all nations, nowadays a society with happy people is an objective to aim at. From this raises the issue of the relationship between happiness and economic growth. In this paper, researchers try to find how people’s happiness influences GDP and economic development. But before that they focused on the question of how happiness is achieved. In order to do so, we start by directly asking Jazan’s habitants through a survey about the source of their subjective well-being and what themselves say about what makes them happy. Then how do these sources of happiness influence their economic performance and participation in GDP growth. The sample’s answers have been formed according to the quintuple likert scale. We used the statistical technique of Cronbach’s Alpha to measure the credibility of the sample’s answers. Researchers used the analytical descriptive methodology in order to analyze all collected data. Results show that social factors are the most important factors drivers of happiness and therefore influencing positively individual’s contribution in economic development of Jazan region. However, economic factors and political factors show that social factors are the main sources of happiness for our sample leading to a better economic development.
    [Show full text]
  • Oecd Workshop on Inclusive Growth
    OECD WORKSHOP ON INCLUSIVE GROWTH 3 APRIL 2013 OECD CONFERENCE CENTRE PROCEEDINGS 0 TOGETHER WE STAND OECD Inclusive Growth Initiative Caitlin, we need here to insert the quotes that were displayed at the conference. The one of the SG is too long as compared to the one of Luis, better to put the two previous ones We now know what doesn’t work. And we have a pretty clear idea of what can be done in order to fix it. And more and more of what we could have or should have done to make the problem less acute – less long lasting. The question of inclusiveness, inequality, opportunities, looking after the most vulnerable is something that we did not put enough attention on. That is part of the Aqui. The OECD has an almost magic ability to bring fact to issues and to fight for better policies for better lives. In some ways it is the world’s largest social justice organisation. – Angel Gurria, OECD Secretary-General ANGEL GURRIA, SECRETARY- GENERAL, OECD “If we are serious about creating lasting prosperity and security, we need a smarter and more sustainable approach to growth—one that taps the potential of everyone to contribute to society and build a better future”. Luis Ubiñas, President, Ford Foundation LUIS UBINAS, PRESIDENT, FORD FOUNDATION 1 CONTENTS AGENDA .............................................................................................................. 5 SPEECHES .......................................................................................................... 9 DRAFT PROCEEDINGS .............................................................................. 15 BACKGROUND .............................................................................................. 15 DEFINING AND MEASURING INCLUSIVE GROWTH ..................... 16 TOWARDS A ROADMAP FOR INCLUSIVE GROWTH POLICIES 20 TOWARDS A ROADMAP FOR INCLUSIVE GROWTH POLICIES 24 IMPLEMENTING CHANGE AND ENSURING BUY-IN ..................... 26 GOING FORWARD TOGETHER..............................................................
    [Show full text]
  • Promoting Inclusive Growth: Challenges and Policies, REFORMS GROWTH INCLUSIVE OECD Publishing
    Promoting Inclusive Growth CHALLENGES AND POLICIES Contents Executive summary Chapter 1. The political economy of inclusive growth by Mushtaq H. Khan Chapter 2. Finance, regulation and inclusive growth by Ross Levine Chapter 3. Individualised service provision and the new welfare state: Are there lessons from Northern Europe for developing countries? Promoting Inclusive by Charles Sabel Growth Chapter 4. Making green sources of growth more inclusive by Sjak Smulders CHALLENGES AND POLICIES Chapter 5. Fiscal democracy or why sound fiscal policy, budget consolidation and inclusive growth require fewer, not more, attempts to control the future Edited by Luiz de Mello and Mark A. Dutz by C. Eugene Steuerle INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCT Chapter 6. Sequencing public interventions to support techno-entrepreneurship STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCL by Morris Teubal STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INC Chapter 7. Competitionand and Yevgeny innovation-driven Kuznetsov inclusive growth INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCT by INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUC Mark A. Dutz, Ioannis N. Kessides, Stephen D. O’Connell Growth Inclusive Promoting STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCL Chapter 8. How do you make growth more inclusive? STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INC by William R. White INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCT INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUCTURAL REFORMS INCLUSIVE GROWTH STRUC and Robert D.
    [Show full text]
  • Infrastructure for Supporting Inclusive Growth and Poverty Reduction in Asia
    Infrastructure for Supporting Inclusive Growth and Poverty Reduction in Asia in Asia Reduction and Poverty Growth Inclusive Supporting for Infrastructure This publication summarizes the papers and presentations in Workshops on Economics of Infrastructure in a Globalized World, funded by the Asian Development Bank through a regional technical assistance project. Infrastructure for The discussions at the conferences focused on three themes: (i) the role of infrastructure in supporting inclusive growth and poverty reduction; (ii) the need for appropriate soft infrastructure, including the policy environment Supporting Inclusive and regulatory institutions; and (iii) the potential for public and private partnerships in infrastructure provision. Each theme elaborates the premise Growth and Poverty that extensive, efficient infrastructure services are essential drivers of economic growth and sustainable poverty reduction. Reduction in Asia About the Asian Development Bank ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to two-thirds of the world’s poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. ISBN 978-92-9092-616-0 Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org 9 789290 926160 Printed on recycled paper Printed in the Philippines Infra-Cover.indd 1 02-04-2012 7:22:55 AM Infrastructure for Supporting Inclusive Growth and Poverty Reduction in Asia © 2012 Asian Development Bank All rights reserved.
    [Show full text]
  • The Framework for Policy Action on Inclusive Growth
    Meeting of the OECD Council at Ministerial Level Paris, 30-31 May 2018 THE FRAMEWORK FOR POLICY ACTION ON INCLUSIVE GROWTH This document is published under the responsibility of the Secretary-General of the OECD and does not necessarily reflect This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, the official views of OECD Members. to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The Framework for Policy Action on Inclusive Growth 2 │ Contents Part I. Executive Summary .................................................................................................................. 6 1. Main trends ........................................................................................................................................ 7 1.1. The global upswing provides an opportunity to set the foundations for sustainable growth that benefits all ............................................................................................................................................ 7 1.2. Opportunities for low-income groups are worsening ................................................................... 7 1.3. There is scope to improve business dynamism ............................................................................. 8 1.4. Digitalisation has not yet materialised into broad-based productivity growth ............................. 9 1.5. High levels of inequality have negatively affected
    [Show full text]
  • The Inclusive Growth and Development Report 2017
    Insight Report The Inclusive Growth and Development Report 2017 January 2017 Contents The Inclusive Growth and Development Report 2017 is published by the World Economic Forum. Preface v by Richard Samans Executive Summary vii Richard Samans Member of the Managing Board Part 1: Inclusive Growth and Development Jennifer Blanke Chief Economist Rising to the Challenge of Inclusive Growth 01 and Development Margareta Drzeniek Hanouz by Richard Samans, Jennifer Blanke, Gemma Corrigan, Head of Global Competitiveness and Risks Margareta Drzeniek Hanouz Gemma Corrigan Practice Lead, Economic Growth and Social Inclusion Initiative Part 2: Data Presentation 47 2.1 Selected Country Summaries 48 2.2 Inclusive Development Index 60 We thank Madhur Singh and Andrew Wright for their editing work and Human After All, Moritz Stefaner and Tim Bruce (Lowercase, Inc.) for their excellent graphic design and layout. 2.3 National Dashboard of Key Performance Indicators 72 The terms “country” and “nation” as used in this Report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The terms cover well-defined, geographically self-contained economic areas that may not be 2.4 Policy and Institutional Indicators 78 states but for which statistical data are maintained on a separate and independent basis. 2.5 How to Read a Country Profile1 86 World Economic Forum Geneva Part 3: Methodology and Acknowledgements 92 Copyright © 2017 Methodology of the Benchmarking 92 by the World Economic Forum Framework on Inclusive Growth and Development All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by Technical Notes and Sources 102 any means, electronic, mechanical, photocopying, or otherwise, without the prior permission of the World Economic Forum.
    [Show full text]
  • All on Board: Making Inclusive Growth Happen
    This document is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. *** This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. *** The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. *** Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. © OECD 2014 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of the source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. ALL ON BOARD MAKING INCLUSIVE GROWTH HAPPEN This report was prepared by the OECD Secretariat, with support from the Ford Foundation, as a contribution to the OECD Inclusive Growth Initiative.
    [Show full text]