If you are interested in trading in Africa, this is a wake-up call!

Enforcement of Competition law and policy has revved up several gears on the Continent, as delineated by the recent commencement of investigations by the Common Markets for Eastern and Southern Africa (“COMESA”) Commission into a suspected violation of the COMESA Competition Regulations by Pay TV Companies and the conclusion of investigations into “misleading and unconscionable conduct” by Jumia Group.

Competition laws and policies essentially try to create a market where traders can compete freely on the quality of products and services they offer and the prices they charge rather than through the improper exercise of market power, whether acquired unilaterally or in concert with others.COMESA’s approach in the examples cited indicates a very low tolerance level for market manipulations to distort fair Competition. Intrinsic and often included in Competition laws and regulations is the concept of consumer rights protection. This seriousness in the enforcement of Competition law and policy at the regional level is a foreseeable

consequence of the escalating prevalence of regional trade agreements aimed at dismantling tariff and non-tariff barriers, thereby facilitating the unimpeded flow of goods, services, and labour. The former Secretary General of COMESA underscored this point in 2004 when he opined that; ‘as the regional economy integrates more deeply, the necessity for appropriate policy instruments and tools is becoming increasingly urgent and, in this regard, a Competition policy is important to ensure observance of good corporate governance and promoting equitable and harmonious economic development.’

In the context of trading under the African Continental Free Trade Area (“AfCFTA”), regulatory approaches in Regional Economic Communities (“RECs”) like COMESA become even more instructive. Therefore, it is a safe bet to expect as strict a regulatory approach to the enforcement of the AfCFTA Protocol on Competition as the COMESA model and a fortiori even exactly the same approach. It would be remiss for Companies trading in Africa not to pay attention to these burgeoning rules against restrictive agreements and abuse of dominance.