“Competition policy is not a luxury or a regulatory nicety. It is an essential underpinning of the market economy. Developing countries need it as much as, or even more than, rich countries, because the risks of market abuses, cronyism, and corruption are even higher.”. -Prof Jeffrey Sachs
About two weeks ago, President John Mahama launched the government’s flagship policy, the 24-Hour Economy and Accelerated Export Development Policy. If well implemented, it could become a watershed moment for Ghana’s economy. With eight interconnected pillars, namely agriculture, manufacturing, infrastructure, logistics, finance, human capital, civic engagement, and cultural identity, this policy presents a novel framework for industrial transformation.
Competition (antitrust) policy and law are central to every industrial transformation. Without this, even the best-designed industrial and export policies risk being captured by vested interests, stifled by monopolies, or rendered ineffective by unregulated market power.
What is Competition Law?
Competition law, sometimes referred to as antitrust law, refers to a set of rules that govern how businesses compete in a market. It prevents anti-competitive conduct that harms consumers, inhibits innovation, or blocks new entrants from competing fairly. This includes cartels, price fixing, abuse of dominance, bid rigging, and collusive tendering.
Competition law ensures that firms compete on merit rather than through manipulation, exclusivity arrangements, or the exercise of market power. It empowers the competition regulator the authority to investigate, penalise, and remedy market conduct that distorts competition. Ghana has had a draft competition bill since 2007.
What is Competition Law Against?
Competition law does not punish size or success. It is not against firms becoming dominant through efficiency or innovation. It prohibits specific practices such as agreements between competitors to fix prices, share markets, or limit output or an abuse of a dominant position, such as predatory pricing or refusing access to essential facilities. It also makes sure that mergers and acquisitions do not substantially lessen competition or create market concentration. Additionally, competition law prohibits exclusive contracts or loyalty rebates that shut out or foreclose rivals. These practices can distort markets, entrench monopolies or oligopolies, and block smaller players or innovators from succeeding and lead to market inefficiency.
Why Competition Law Matters for 24H+ and Export Development
The 24H+ policy is about transforming Ghana’s economic DNA. It focuses on revitalising agriculture, scaling manufacturing, building infrastructure, expanding exports, and unlocking the productivity of the Ghanaian workforce. But without a level playing field, the benefits of these investments may be captured by a few entrenched interests, defeating the purpose of inclusive transformation.
For example, the MAKE24 industrialisation strategy aims to raise manufacturing’s share of GDP from 12 per cent to 20 per cent by 2028. This will involve clustering firms in Wumbei Industrial Parks and linking them to raw materials and logistics networks. But what happens if large players in the parks collude on prices, shut out competitors, or use their market dominance to exploit suppliers? Without competition law, these risks cannot be addressed.
Additionally, GROW24 aims to strengthen agriculture through the development of agroecological parks (Agbleduwo), improved irrigation, cold chains, and cooperatives. But if powerful buyers or intermediaries engage in unfair pricing or buyer cartels, smallholder farmers will not benefit from the value chains. Competition law protects these producers by ensuring buyers compete fairly and prices reflect market dynamics, not collusion.
The Benefits of Competition to Job Creation, Exports, and Competitiveness
Open markets spur innovation and productivity. When firms compete fairly, they are pushed to become more efficient, invest in better technology, and expand operations to gain market share. This leads to higher employment. According to the 24H+ policy, Ghana could create up to 1.7 million jobs by 2028 and exceeding 5.2 million jobs by 2034. But these jobs will not materialise if the market environment discourages entry and innovation. Competition law attracts foreign direct investment (FDI). The data worldwide shows.
On export development, Ghana wants to transition from exporting raw materials to exporting processed goods like cocoa butter, garments, pharmaceuticals, and agro-processed foods. This requires competitive supply chains, fair access to infrastructure, and efficient input markets. A robust competition regime would ensure access, reduce costs, and enable scale. It also builds investor confidence, since foreign firms entering the market need assurances that the rules are fair and the market is open.
Finally, at its core, 24H+ is about making Ghana competitive, regionally and globally. This includes reducing costs, improving quality, and scaling up production. Competition law enhances this by removing artificial barriers, improving resource allocation, and promoting efficiency. A competitive domestic economy is the foundation of a competitive export economy. The countries Ghana seeks to compete with—Kenya, South Africa, Zambia, Egypt, Gambia, India, Botswana and Vietnam have functional competition laws that guard against anti-competitive conduct.
Where Ghana Stands Today
Ghana began work on its national competition policy and law nearly two decades ago. However, the process stalled for the better part of the last eight years. Encouragingly, both the 2024 NDC Manifesto and the 2025 Budget Statement (Paragraph 553) state that “the Trade Ministry will also undertake a comprehensive review of the Made-in-Ghana Products Policy, advocate for the passage of the Consumer Protection and Competition and Business Regulatory Reforms Commission Bill.”
International organisations such as UNCTAD, ECOWAS, and the African Union have called on member states to adopt functional competition regimes. Article 12 (3) of the AfCFTA Protocol on Competition mandates “State Parties without competition law and enforcement bodies shall enact competition laws and establish competition enforcement bodies upon entry into force of this Protocol or their accession to the AfCFTA Agreement.” Ghana cannot be an effective player in the single African market without aligning with these standards.
In conclusion, Ghana needs a functional competition policy and law. The issue of price fixing by some cartels that have persistently refused to pass on the gains from the cedi’s appreciation against the USD to consumers can be cured by competition law.
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The writer is a lawyer and a competition economist, and a consumer protection expert. He is the West Africa Regional Director of CUTS International. He can be contacted via email: [email protected] or www.cuts-accra.org
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