COMESA–EAC pact signals a new era of regional competition regulation

In a landmark step towards strengthening regional economic integration, the COMESA Competition Commission (CCC) and the East African Community Competition Authority (EACCA) have this month signed a Memorandum of Understanding (MoU) to enhance cooperation in enforcing competition and consumer protection laws across their respective regions.

Six of eight EAC partner states are also among the 21 member states of COMESA: Burundi, Democratic Republic of Congo, Ethiopia, Kenya, Somalia, and Uganda. 

While the MoU signals a positive step toward deeper collaboration between the CCC and the EACCA, it is important to note that it is non-binding and does not create enforceable legal obligations. Its effectiveness will ultimately depend on how its stated intentions are operationalised in practice.

Key highlights of the MoU include: 

• Overlapping jurisdiction – the MoU provides a framework within which the EACCA and the CCC will handle transactions which fall under both jurisdictions. Notably, the necessary legal instruments and guidelines will be required to be adopted to enhance the efficacy of this provision.

• Coordination of enforcement activities – the MoU provides a framework allowing the EACCA and the CCC to render assistance to each other in their enforcement activities. This includes information exchange, locating and securing evidence etc.

• Technical assistance and capacity building – the MoU provides that the regulators shall mobilise resources for joint capacity building, jointly facilitate and develop advocacy workshops and establish mechanisms to strengthen the implementation of competition law in their respective regions.

So what does this new MoU mean for businesses operating in the region?

It may lead to greater predictability with more consistent approaches in cross-border merger reviews and investigations. Businesses may benefit from clearer guidance and harmonised enforcement practices when navigating transactions across these regions. 

There is also potential for streamlined processes, reduced duplication of efforts, and improved coordination between the regulators in handling cross-border transactions.

On the other hand, closer cooperation may result in heightened scrutiny of mergers and conduct, including more coordinated investigations, broader information requests and longer timelines.

We recommend taking a proactive approach to competition compliance and engaging early with legal counsel when preparing for cross-border transactions.

With the CCC’s experience as the most established regional competition authority on the continent, its partnership with the EACCA under the MoU could serve as a practical blueprint for the implementation of the AfCFTA Competition Protocol and the establishment of its institutions.

Joyce Karanja is Head of Competition in Bowmans’ Nairobi office. Wang’ombe Kariuki is a leading economist and senior consultant, and Cynthia Waweru is a senior associate.