Competition regulation in Africa

The landscape of competition regulation in Africa is evolving, with new competition authorities coming online and regional bodies announcing their own regulators. The expected establishment of the East African Community Competition Authority adds another layer of regulations that investors must comply with, in addition to existing national competition regimes and COMESA merger notification obligations. Zolani Inyali, Senior Associate in Bowman Gilfillan Africa Group's Competition Practice, highlighted the implications for investors involved in cross-border merger transactions in Africa, noting that they may have to navigate the merger regimes of up to three different competition regulators. In a recent interview with CNBC Africa, Inyali discussed the changing rules of engagement for investors looking to do deals in East Africa and the potential impact on foreign direct investment (FDI). He emphasized that while the regulatory landscape is becoming more complex, it can ultimately benefit investors if implemented gradually and in line with international standards. The conversation also touched on the potential for foreign companies to dominate markets in other African countries and the importance of competition rules in leveling the playing field. Inyali underscored the need for a balance between competition law and industrial policy to support economic growth and protect consumers. The interview shed light on the cost implications of compliance with competition regulations, with concerns around high merger filing fees being addressed and lowered in some regions. Overall, the discussion highlighted the importance of understanding and navigating the changing competition regime in Africa for investors and businesses alike.