The State of Competition and the Competition Regime of Ethiopia: Potential Gaps and Enforcement Challenges

Ethiopia has made progress toward market-oriented economic management, but the state of domestic competition remains weak, even with the competition law in place. Most small and large enterprises are accustomed to socialist government support. They now face the challenge of struggling to catch up with a market-oriented competition environment.

The socialist regime's economic policies are further compounding the problems that businesses face. These policies are still in place in Ethiopia, even though they clash with market principles. To add to the challenge, some newly introduced policies do not seem to be effective at promoting competition.

This project seeks to investigate the barriers to competition, the potential gaps in Ethiopia's revised competition law (Trade Practices Proclamation), and the possible challenges that may arise during implementation of the new law. More specifically, researchers will:
-investigate the nature of competition in selected markets and sectors;
-identify specific barriers reducing competition;
-assess the effects of barriers on suppliers and consumers;
-examine whether the revised competition law will address market competition problems;
-identify possible enforcement challenges that may weaken enforcement of the competition law;
-build competition authorities' skills and knowledge to enforce the competition law; and,
-recommend measures to promote market competition.

This study will create better awareness of Ethiopia's competition regime. It will also promote discussions among policymakers, the business community, and academia. The research team will make recommendations to policymakers regarding possible revisions to the current policy. The findings will feed into the Africa Competition Forum, which was established in March 2010 to develop policy frameworks to support competitive markets at the national and regional levels throughout Africa. The Organization for Social Science Research in Eastern and Southern Africa-Ethiopia will manage the project.

Project ID

107462

Project status

Closed

Start Date

Wednesday, October 16, 2013

End Date

Friday, August 14, 2015

Duration

18 months

IDRC Officer

Okwi, Paul

Total funding

CA$ 118,100

Countries

Ethiopia, North of Sahara, South of Sahara

Program

Employment and Growth

Project Leader

Kibre Moges Belete

Institution

Organization for Social Science Research in Eastern Africa and Southern Africa

Institution Country

Ethiopia