Anti-competitive cartels know no geographic boundaries‚ which has prompted Southern African Development Community (SADC) member states to join forces to nail cross-border cartels.

Following a meeting chaired by South Africa in Pretoria on Wednesday‚ competition commissioners from the 15 SADC member states entered into an agreement of cooperation which saw the adoption of a comprehensive SADC cartels cooperation framework.

The agreement is aimed at promoting greater regional cooperation and coordination and to enable SADC member states to improve the quality and efficiency of cartel investigation processes.

 Thembinkosi Bonakele‚ SA’s competition commissioner‚ said cartel conduct by companies is one of the most harmful forms of anti-competitive conduct.

 He said a recent World Bank study on competition policy in South Africa showed that by tackling four cartels in wheat‚ maize‚ poultry and pharmaceuticals‚ some 202‚000 individuals were lifted above the poverty line through the lower prices that followed.

 Bonakele said the savings put an additional 1.6% back into the pockets of the poorest 10% by raising their disposable income.

 “The egregious effects of cartels in Africa are also documented in a joint report by the African Competition Forum and the World Bank‚ which showed that the retail prices of ten key consumer goods (including bread‚ milk‚ eggs‚ potatoes and frozen chicken) are on average 24% higher in African cities than in other economies around the world‚” he said.

Bonakele said the agreement follows the signing of the landmark Memorandum of Understanding (MoU) between the SADC competition authorities in May.

He said the benefits of increased cooperation among SADC competition agencies include reducing unnecessary duplication of work‚ delays and burdens for merging parties and agencies‚ reducing gaps in information available to agencies which increases analytical robustness‚ and promoting convergence in the analysis of specific cases.

 Bonakele said information sharing between SADC competition authorities on legal frameworks‚ investigative processes‚ timetables‚ procedures and confidentiality rules could increase transparency in agency practice to minimise uncertainty and increase predictability in merger reviews.

 “Cooperation can also improve the quality of merger reviews and assist in enhancing the efficiency of merger review regimes‚” he added.