Excessive market concentration in African agri-food systems is harming producers, MSMEs, and consumers

The extreme levels of concentration in many African food and agricultural markets reveal dysfunctions and distortions. From input to retail, markets are concentrated and present high barriers to entry, leading to harmful cartels.  

Anti-competitive conduct and concentrated market power in Africa is allowing large companies to earn excessive margins. As a result, prices paid to farmers are diminished while customers pay inflated prices. 

Competition laws and policies need urgent reform to empower small agricultural businesses and farmers in Africa and thus enable the transition towards more inclusive and sustainable agri-food systems.  

Large parts of Africa lack national competition laws, policies and/ or institutions  

Ensuring the proper enforcement of rules against the abuse of market power starts with robust and effective laws, policies, and competition institutions.  

According to a review of the state of competition laws, policies, and institutions in the 48 Sub-Saharan African countries  

A reform agenda

In November 2023, the Shamba Centre published a landmark three-part report with a review of the impact of agri-food market concentration in Africa, a situation analysis of competition law and institutions in Sub-Saharan African countries and a reform agenda to strengthen competition regimes. 

Entitled Empowering African Food Producers and Agricultural Enterprises Through Stronger Competition Law and Policy, the report provides the framework for advocacy and guidance at the country level.

The Shamba Centre continues to work with experts in Africa to document excessive market concentration in food systems and explain the negative impact on small producers and consumers.