Competition Policy and ‘The Developmental State’ in Africa: A Case-Study of Kenya and South Africa

Abstract

This paper addresses the general context of competition law in Africa from a ‘political economy’ perspective and revisits the economic history of Africa between the year 1900 and 2015. Part I of the paper outlines the social, political, and economic context of Africa roughly between the years 1900 and 2015. Part II gives the historical background to competition policy and law. It revisits the emergence of the anti-trust movement in the United States of America during the 1890s. Part III of the paper critically examines the basic arguments of competition theory which are derived from neo-classical economics theory. Part IV of the paper defends the case that Kenya and South Africa are fit for a comparative examination and concludes the paper. This paper focuses on the economic structures established during the period of colonial (including apartheid) rule in Kenya (1895-1963) and South Africa (1867-1994).Two questions are posed in the paper concerning the general context of competition law in Africa: the first question is: what are “the established hierarchies” of the national economy of Kenya and South Africa? This question touches on the mode of integration of African countries into the world capitalist system in the opening decades of the twentieth century. The second question asks: “in whose interests does the national economy of a given African country function?” The paper argues that the international economic and political context that Africa encounters during the second decade of the twenty-first century could be just as important as the national economy; secondly, both contexts should inform the choice of ‘goals’ to be served by competition law in African countries.