Push for more state intervention in business in South Africa

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Deputy Minister Zuko Godlimpi has called for the conversation of expanding interventionist competition policies to further protect the consumer, address market concentration, and ensure inclusive economic growth.

2024 marks 25 years of competition authorities enforcing competition law and policy in South Africa—and the Department of Trade, Industry and Competition wants even more government interventionist policies to come to the fore.

Godlimpi said that “the apartheid regime had allowed anti-competitive practices by South African big businesses without hindrance a strategic response to the economic sanctions imposed on the country pre-1994.” The view is that this impacts not only SMMEs but also the consumer by allowing big businesses to be “an arbitrary price setter,” which,, disproportionately impacts low-income and previously disadvantaged households.

“Many of the Competition Commission’s investigations, interventions and initiatives have targeted essential goods and services such as food, healthcare, telecommunications, retail products, energy and transport.”

 

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