Abstract:

Despite the gradual emergence of some African multinationals entering into the global league, for instance in cement, the implications of this rapid growth on competitiveness and competition policy has been under-explored in the literature. This paper explores the concentration ratios in Africa’s largest economy and potential implications for competition, and competition policy. The research attempts a preliminary estimation and assessment of trends in concentration ratios and competitiveness in the consumer products market, focusing on the cement market. Using micro-economic theory and descriptive statistics, the findings show that the increasing concentration ratio in the cement industry has outpaced the rates for consumer products, and coupled with other indices may serve as potential triggers for review by a competition commission. In addition, the study highlights implications for competition policy and regulation including the need for dynamic models to model competitive behaviour and avoid over-concentration of market power in dominant oligopolies.