The COMESA Competition Commission (CCC) has received global recognition for its role in addressing inefficiencies within agricultural markets, with a focus on enhancing food security and alleviating poverty. The Commission, in collaboration with the Competition Authority of Kenya (CAK), was acknowledged by the World Bank for its joint efforts to improve the agricultural sector, aiming to reduce market inefficiencies and curb high consumer prices. These efforts are part of a broader initiative to create more sustainable agricultural markets that can contribute to poverty reduction across the region.
At the International Competition Network Conference held in Edinburgh, Scotland, Dr. Willard Mwemba, the Director and CEO of the COMESA Competition Commission, expressed his gratitude for the recognition. He emphasized that reducing poverty and improving the welfare of people in the COMESA region and globally is a deeply personal commitment for him and the Commission. This acknowledgment serves as an inspiration for continued work towards improving food security, supporting small producers, and enhancing the livelihoods of millions in the region.
The recognition is primarily due to the Commission’s partnership with the Centre for Competition and Economic Development, which undertook an extensive study of key staples in the region, including maize, soybeans, vegetable oil, and fertilizers. The research revealed significant challenges in the agricultural market, such as high levels of market concentration, trade barriers induced by policy, and excessive price mark-ups. These inefficiencies have contributed to increased consumer prices, making essential food items less affordable for many.
The study’s findings played a crucial role in shaping the advocacy and reform initiatives across member states. These initiatives included market inquiries and proposed amendments to regional regulations aimed at addressing the root causes of market inefficiencies. As a result, the proposed reforms are expected to yield considerable financial savings, including an estimated USD 1 million in annual savings, and to significantly reduce household expenditure on vegetable oil by 50-60%. In addition, the reforms are expected to lower input costs for small producers, which will help to increase the affordability of food items, thereby enhancing food security across the region.
One of the key anticipated outcomes of these reforms is their potential to support the government’s broader goals related to nutrition and export growth. For instance, egg producers stand to save approximately USD 23 million over a three-year period, a crucial benefit that could help stabilize the agricultural sector and support long-term sustainability.
The efforts to address market inefficiencies are not limited to regional studies and reforms alone. The Competition Authority of Kenya has also launched a market inquiry into the animal feed sector, which revealed that regulatory challenges and high market concentration have led to inflated prices. In Kenya, animal feed costs were found to be 40% higher compared to other markets such as South Africa, Brazil, and Malaysia, posing a significant challenge for poultry and dairy farmers. This inquiry has led to several recommendations aimed at addressing these price disparities and improving market conditions for farmers in Kenya.
Overall, the COMESA Competition Commission’s efforts to reform agricultural markets are making significant strides towards improving food security, reducing poverty, and creating a more efficient and equitable agricultural sector across the COMESA region. These initiatives reflect a commitment to addressing systemic challenges and creating long-term benefits for both producers and consumers, with the ultimate goal of fostering a healthier and more sustainable agricultural economy in Africa.
