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Cartels as ‘fraud’? Insights from collusion in southern and East Africa in the fertiliser and cement industries

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  • Thando Vilakazi
  • Simon Roberts

Abstract

Anti-competitive conduct involves firms misrepresenting their behaviour and manipulating markets. In sector case studies of cement and fertiliser, the authors find that collusion in southern and East Africa operated through industry associations exchanging information, secret agreements and lobbying government to distort notionally developmental policies for private benefit. This has occurred in the context of liberalisation and deregulation. Transnational corporations have leveraged control of infrastructure and inputs, and favourable regulations to sustain market power, while presenting themselves as ‘development partners’. Competition law is portrayed as the ‘governance fix’ for these issues but this ignores political economy issues which underpin many collusive arrangements.

Suggested Citation

  • Thando Vilakazi & Simon Roberts, 2019. "Cartels as ‘fraud’? Insights from collusion in southern and East Africa in the fertiliser and cement industries," Review of African Political Economy, Taylor & Francis Journals, vol. 46(161), pages 369-386, July.
    • Handle: RePEc:taf:revape:v:46:y:2019:i:161:p:369-386
    DOI: 10.1080/03056244.2018.1536974
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    Cited by:

    1. Simon Roberts & Witness Simbanegavi & Thando Vilakazi, 2023. "Cementing regional integration or building walls? Competition, cartels and regional integration in the cement industry in Africa," The World Economy, Wiley Blackwell, vol. 46(2), pages 437-452, February.
    2. Grace Nsomba & Thando Vilakazi, 2021. "Barriers to entry and the role of African multinational corporations: Entrants in intermediate industrial products (inputs into construction)," WIDER Working Paper Series wp-2021-143, World Institute for Development Economic Research (UNU-WIDER).

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