The extent of market concentration in South Africa’s product markets

Abstract

Competitive markets can benefit consumers, workers, entrepreneurs, small businesses, and the economy more generally but several indicators suggest the persistence of high levels of market concentration in many of South Africa’s economic sectors. The causes underlying the high levels of concentration and corresponding market power are not clear. This article uses recent data from notified mergers to show the extent of the static level of market concentration (measured using the Herfindahl–Hirschman index). This article argues that consumers and workers would benefit from additional actions to promote effective competition and inclusion in markets.