A Time for Action* – Analysis of Competition Law Regimes of Select West African Countries Volume I: The Gambia, Ghana & Nigeria * Un Temps pour Agir Volume II: Burkina Faso, Mali, Senegal & Togo (In French) A Time for Action –Analysis of Competition Law Regimes of Select West African Countries Volume I: The Gambia, Ghana & Nigeria Published by CUTS Centre for Competition, Investment & Economic Regulation D-217, Bhaskar Marg, Bani Park, Jaipur 302016, India Ph: +91.141.2282821, Fax: +91.141.2282485 Email: [email protected] Website: www.cuts-ccier.org, www.cuts-international.org In Cooperation with: Ministry for Foreign Affairs Sweden ISBN 978-81-8257-140-2 © CUTS, 2010 Citation: CUTS, 2010, A Time for Action Courtesy: Cover photos taken from the internet Printed at Jaipur Printers Pvt. Ltd. The material in this publication produced under the project (Strengthening Constituencies for Effective Competition Regimes in Select West African Countries, 7Up4 Project) may be reproduced in whole or in part and in any form for education or non-profit uses, without special permission from the copyright holders, provided acknowledgment of the source is made. CUTS would appreciate receiving a copy of any such publication, which uses this publication as a source. No use of this publication may be made for resale or other commercial purposes without prior written permission of CUTS. #1016, Suggested Contribution: INR900/US$50 In Partnership With: Centre d’Etudes, de Documentation, de Recherches Economiques et Sociales (CEDRES) Burkina Faso Pro Poor Advocacy Group (Pro-PAG) The Gambia Institute of Statistical, Social and Economic Research (ISSER) Ghana Faculté des Langues Arts et Sciences Humaines (FLASH), Université de Bamako Mali Consumers Empowerment Organisation of Nigeria (CEON) Nigeria Le Consortium pour la Recherche Economique et Sociale (CRES) Senegal Association Togolaise des Consommateurs (ATC) Togo Contents Foreword .................................................................................................................................................iii Preface .......................................................................................................................................................v CHPATER 1 Competitive Markets as Means for Achieving Growth and Development in West Africa Introduction ............................................................................................................................................................... 3 Context ........................................................................................................................................................................ 3 General Social and Economic Indicators ............................................................................................................... 3 Government Policies that Impinge on Competition ............................................................................................. 4 Progress in Operationalising Competition Regimes .......................................................................................... 11 Interface Between Sectoral Regulation and Competition .................................................................................. 18 Allegations of Possible Anti-competitive Practices ............................................................................................ 21 Cross-Sectional Perceptions on Competition Concerns..................................................................................... 25 General Conclusion ................................................................................................................................................ 27 CHAPTER 2 State of Competition in The Gambia Executive Summary ................................................................................................................................................ 31 Characteristics of the Macro Economy ................................................................................................................. 33 Government Policy that Impinges on Competition ............................................................................................ 35 Progress in Operationalising the Competition Act ............................................................................................ 45 Political-economy Constraints in Implementing the Competition Regime ..................................................... 47 Alleged Cases of Anti-competitive Behaviour .................................................................................................... 48 Interface between Sectoral Regulation and Competition in Select Sectors ...................................................... 50 Cross-Sectional Perceptions on Competition ...................................................................................................... 52 Assessment of the Implication of Natural Monopolies on Competition ......................................................... 65 Assessment of Competition in the Agricultural Sector ...................................................................................... 68 Conclusions ............................................................................................................................................................. 79 References ................................................................................................................................................................ 81 Endnotes................................................................................................................................................................... 81 CHAPTER 3 State of Competition in Ghana Executive Summary ................................................................................................................................................ 85 Introduction ............................................................................................................................................................. 86 Overview of Relevant Government Policy ........................................................................................................... 88 Nature of Competition ............................................................................................................................................ 95 Interface between Sectoral Regulation and Competition in Select Sectors ...................................................... 97 Alleged Cases of Anti-competitive Behaviour .................................................................................................. 102 Cross-Sectional Perceptions on Competition .................................................................................................... 104 Assessment of the Implication of Monopoly Situations on Competition ...................................................... 108 Assessment of Competition in the Agricultural Sector .................................................................................... 110 Conclusions and Recommendations ................................................................................................................. 120 References .............................................................................................................................................................. 121 Endnotes................................................................................................................................................................. 122 CHAPTER 4 State of Competition in Nigeria Executive Summary .............................................................................................................................................. 125 Characteristics of the Macro-economy ............................................................................................................... 127 Government Policy that Impinges on Competition .......................................................................................... 131 Progress Made Towards Operationalising Competition Regimes ................................................................. 147 Political Economy Constraints in Implementing Competition Regime ......................................................... 150 Interface between Sector Regulation and Competition in Select Sectors ....................................................... 155 Alleged Cases of Anti-competitive Behaviour .................................................................................................. 161 Cross-sectional Perceptions on Competition .................................................................................................... 167 Sectoral Analysis of Competition in Select Key Sectors ................................................................................... 172 Assessment of the Implication of Natural Monopolies on Competition ....................................................... 175 Assessment of Competition in the Agricultural Sector .................................................................................... 179 Conclusions ........................................................................................................................................................... 189 References .............................................................................................................................................................. 190 Endnotes................................................................................................................................................................