Sustainability and competition in Eastern and Southern Africa

This chapter considers the role of competition policy and sustainability with reference to food systems transformation in Eastern and Southern Africa (ESA) in the context of global value chains. Growing concentration at key nodes in food value chains - for key inputs, as main processors or as gatekeepers to end markets - increases the vulnerability of food systems and puts pressure on the margins of small and medium-sized farmers and producers. This in turn affects their ability to invest in climate-smart production and adaptation, with serious implications for food security in ESA. The chapter argues that the challenge of building resilient and sustainable food value chains not only requires urgent and targeted interventions by competition authorities on the African continent at both national and regional levels, but also needs interventions which are international in scope, given the transnational organization of firms in food systems. This requires a wider value chain lens to understand global and regional governance dynamics in food value chains including the different forms of power shaping participation, innovation and upgrading in food systems. The chapter sets out four ways in which competition authorities need to collaborate with governments, lead firms and the eco-system of institutions to ensure more competitive outcomes. More, rather than less, intervention and scrutiny by competition authorities is required for sustainable food markets.