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Competition barriers in South Africa

"The structure of South Africa's economy welcomes few entrants. It is highly concentrated with insiders firmly entrenched. Widening access to the economy, according to the results of a set of studies released this week, will require a concerted and collaborative effort by the government to alter the economic landscape, remove barriers to entry, enhance competition and foster inclusive growth." This is how Business Day reports the view of the Centre for Competition, Regulation and Economic Development (CCRED), which has uncovered a range of often mutually reinforcing factors that stack up to block greater participation in the South African economy by entrepreneurs or producers. CCRED has examined practical experiences such as those of low-cost airlines, and undertook sector studies of the barriers in telecoms, agro-processing, liquid fuels and mobile money. The reduction in mobile call termination rates, which enabled Cell C and Telkom Mobile to become more effective competitors, induced the two lead operators to also reduce rates, saving consumers about 47bn rand since 2010, it says. Read more

  • Wednesday, 20 July 2016

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