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Competition and Regulation for Inclusive Growth in Southern Africa.Indd 1 2019/07/03 14:43 Competition and Regulation 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 for Inclusive Growth in Southern Africa.indd 1 2019/07/03 14:43 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 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 N C LUSIVE G R OWTH 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. Cartel enforcement: Adoption of a leniency programme in Kenya Barnabas Andiva and Edith Masereti ................................321 11. Overcharge 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. Spectrum 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. Procedural 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 N C LUSIVE G R OWTH 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 Commission of South Africa. Mwanda Phiri is a research fellow in trade and investment at the
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