Ramaphosa eyes 'explosive' growth for SA
Johannesburg – Competition authorities should clamp down on market dominance and open up the economy to enable its “explosive growth”, Deputy President Cyril Ramaphosa said in Johannesburg on Friday.
He was delivering an address at the Competition Law, Economics and Policy Conference at the Gordon Institute of Business Science. Ramaphosa spoke on the role of competition policy in correcting the concentrated economy inherited from the apartheid government.
A concentration study by the Competition Commission confirmed views that the South African economy remains highly concentrated, commissioner Tembinkosi Bonakele said earlier. At least 70% of economic sectors are dominated by three or four large firms, with an average market share of between 46% and 67%.
“Inclusive growth can be enabled by deconcentrating our economy,” said Ramaphosa. “Anti-competitive behaviour prevents economies from ever realising their potential.” For this reason competition policy should not just be focused on promoting market efficiency, but should be an instrument that effects fundamental economic and social change.
“Competition policy plays a pivotal role to address the injustice of the past.” Apartheid resulted in the excessive concentration of ownership and control within the national economy.