Cartels and Rogue Firms Put on Notice as COMESA, EAC Sign Pact to Seal Enforcement Gaps

Cartels and unscrupulous businesses that have long exploited enforcement gaps in eastern and southern Africa’s competition frameworks have been put on notice.

This follows the signing of a landmark Memorandum of Understanding (MoU) between the COMESA Competition Commission (CCC) and the East African Community Competition Authority (EACCA) aimed at enhancing cross-border regulation and closing regulatory loopholes.

The MoU, signed Tuesday by the two regional watchdogs, marks a new era of collaboration in tackling anti-competitive practices and protecting consumer welfare across the COMESA and EAC trading blocs.

It is expected that the agreement will streamline investigations, improve information sharing, and harmonise regulatory enforcement across jurisdictions where businesses often exploit overlaps and legal rigidities.

“This partnership sends a strong message to those who think they can take advantage of enforcement gaps—we’ve just closed that window, so beware,” warned CCC chief executive Willard Mwemba during the signing of the MOU in Nairobi.

The deal, years in the making, was crafted to ensure that businesses operating in multiple jurisdictions no longer manipulate gaps in regional frameworks to stifle competition, form cartels, or undermine consumer rights.

One of the critical concerns the MoU addresses is the duplication of regulatory processes—especially in merger notifications involving firms operating in both COMESA and EAC member states.

Dr Mwemba acknowledged that some businesses have been subjected to double notification processes, a challenge the MoU seeks to solve while recognizing the need for practical solutions.

“For example, where the CCC determines that another authority—national, regional, or even continental—is better placed to handle a matter, the Commission now has the provision to refer such cases accordingly.”

This pragmatic approach comes as the CCC concludes amendments to its competition regulations, embedding provisions that will enhance cooperation with other authorities and reduce regulatory duplication.

It also comes at a time the EACCA, established in 2016, is in the process pf operationalizing its merger control regime and reviewing its legal framework to address overlapping jurisdictions—a challenge the MoU directly tackles.

EACCA acting registrar Stellah Onyancha emphasized that the MoU is not about burdening businesses with more regulation but about promoting fair play in the market.

“We are aiming to create a conducive environment. We don’t want to frustrate businesses—we want to encourage competition that is fair and fosters innovation and efficiency,” she said.

Specific areas of collaboration include joint capacity building, technical assistance, information sharing, and synchronized enforcement of both competition and consumer protection laws.

Following the signing of the MOU, the CCC and EACCA now boast an expanded capacity to jointly detect, investigate, and prosecute anti-competitive conduct, including cartel operations that have undermined fair competition in the region for years.

“Our collaboration means now we will conduct joint investigations, undertake joint market inquiries, and share resources—including human capacity—to ensure enforcement is effective across borders,” said Dr Mwemba.

The collaboration also aligns with the broader momentum at the continental level under the Africa Continental Free Trade Area (AfCFTA), which is finalizing regulations to operationalize its Competition Protocol.

Dr Mwemba noted that with the advent of the AfCFTA, it has become necessary for Regional Economic Communities (RECs) to collaborate more closely to give life to the function of RECs as building blocs.

With 125 countries globally now having competition laws—including 19 out of COMESA’s 21 member states—Africa is catching up fast.

The partnership between CCC and EACCA sets to enhance certainty to business merging while ensuring the two trade blocks put a united front to ensure rules are enforced, markets remain competitive, and consumers are protected.

“This is what we are doing for the markets,” he added. “Unscrupulous businesses will no longer find shelter in enforcement gaps. We will be everywhere now.”

ligadwah@businessdayafrica@org