Competition Policy in South Africa

Abstract: The 1998 Competition Act heralded a new era of active competition enforcement in South Africa. Since then, South Africa has developed a robust and admirable competition system. To some extent, the enforcement of competition law has contributed to an increase in more affordable goods and services. Furthermore, it has contributed to creating a market environment that encourages economic participation by all South Africans, increases the competitiveness of South African firms, and facilitates inclusive economic development. However, the South African economy remains highly concentrated, strategic barriers to entry protect incumbents, and the spread of ownership and economic participation remain skewed. The competition system has not delivered on all of its promises to address South Africa’s problems. This chapter provides a critical review of many of the developments that helped shape and mature the competition system into one of the most outstanding and path-breaking in the developing world. It also offers reflections on current challenges and opportunities.