6 November 2023

A recent panel session of young professionals organized during the World Food Forum discussed how food systems in Africa can be transformed through youth-led reform of competition law and policy. The session brought together Malik Dasoo from the African Climate Foundation, Mirirai Tembo from the Cherry Orchard Farm in Zambia, Grace Nsomba from the Centre for Competition, Regulation and Economic Development (CCRED) and Thembalethu Buthelezi from the Competition Commission of South Africa and was moderated by Myriam Hammadi from the Shamba Centre for Food & Climate.  

The discussion focused on how current competition regimes could be leveraged to help end hunger in Sub-Saharan Africa, where nearly 25% of the population suffers from food insecurity (FAO, 2022).  

According to Malik, “Markets are currently not working for farmers, and they are not working for consumers either. African farmers are squeezed upstream and downstream by companies that are highly concentrated and lack sufficient bargaining power”. As a result, farmers receive low prices for their produce while consumers pay 35% more for their food product compared with consumer in other developing countries. 

The situation is further complicated by extreme weather events, such as droughts and floods, caused by climate change. As Myriam noted, this has also negatively impacted food production and exacerbated production volatility which can be exploited by companies with significant market power. 

Mirirai shared the challenges she faces in the sustainable production of sunflower derived products, as the CEO and co-founder of her farm. “The alarmingly high prices of conventional fertilizer, as well as the lack of innovation in organic fertilizers (making them less productive), constituted a huge difficulty when I launched my farm,” she noted. “Even today I am challenged by the lack of facilities nearby to process my sunflower seeds organically despite having completed all the requirements at the level of seed sourcing and production.” 

Grace agreed that the many challenges faced by Mirirai are present throughout the continent. Her research has identified the dysfunction in the fertilizer and poultry markets that are currently hampering food production and nutritional security. She provided details about the African Market Observatory that the CCRED publishes every month with data and price tracking for Sub-Saharan Africa. 

The session ended with three recommendations from Thembalethu on how competition policy could be strengthened. First, she called for the strengthening of regional enforcement. “Food and agriculture markets are cross-border in Africa. Regional enforcement and collaboration between authorities can help regulate and enforce cross-border anti-competitive behaviors in food and agriculture markets.” 

Second, Thembalethu called for the mobilization of stakeholders including farmer associations, consumer groups, and government ministries such as the Ministry of Agriculture. Finally, she recommended the strengthening of information gathering and access, and most notably price data since they are good indicators of market dysfunction. 

This World Food Forum side-event was jointly organized by the CCRED, African Climate Foundation and the Shamba Centre for Food & Climate.