The problems facing the South African maize industry
illustrate the difficulties in balancing economic efficiency with
the development objectives of the Competition Act.
Reconciling the many goals of the South African Competition Act
presents a significant challenge. The Act prohibits restrictive
collaborative and unilateral conduct by firms that yields market
outcomes deemed 'inefficient' when measured against
consumer, producer and total welfare standards. However, it also
seeks to remedy endemic inequality by explicitly promoting a range
of social objectives, including employment and the participation of
historically disadvantaged people in the economy.
This can create an inherent conflict – achieving the
'development' goals contained in the Act may necessitate
sacrificing efficient market outcomes. The complex dilemma facing
South Africa's maize industry provides a lens through which
this overarching problem may be illustrated.
