The COMESA Competition and Consumer Commission (CCCC) is warning that global volatility is not a ‘get out of jail free’ card for corporate greed, as the escalating Middle East conflict sends shockwaves through logistics and energy sectors.
The turmoil now threatens to derail both economic stability and food security across the COMESA region.
In a statement issued yesterday, CEO Dr. Willard Mwemba warned that the current instability provides a perfect smokescreen for dishonest businesses to hike prices far beyond what is necessary.
“CCCC is concerned that the Middle East crisis is likely to result in some market operators abusing the situation and engage in anti-competitive conduct and unfair trade practices such as excessive pricing, collusion, hoarding, and price gauging.”
The commission is therefore bracing for an artificial inflation of poverty as crude oil price shocks ripple through the supply chain.
“We take note that conflict in any part of the world has ripple effects across global economies,” said the CEO.
“CCCC recognises the severe humanitarian and economic consequences of this crisis and acknowledge that supply bottlenecks, higher logistics costs and commodity shortages may exert upward pressure on prices and inflation across the Common Market”.
In a region where every link, from farm to fork, depends on fuel, the increasing cost of crude oil creates a dangerous domino effect.
“Crude oil price shocks are likely to result in higher prices of fertiliser, with ripple effects on food prices and inflation creating an artificial exacerbation of poverty,” he added.
High energy costs inevitably lead to expensive fertilizer and, consequently, a spike in food prices that hits the most vulnerable consumers.
While the commission recognizes genuine logistics bottlenecks and higher costs, Dr. Mwemba noted that these challenges do not give anyone a free pass to exploit consumers.
The CCCC unequivocally cautions all businesses operating in the COMESA region that these circumstances do not justify any form of anti-competitive conduct or unfair trade practices.
The regulator is particularly on the lookout for red flag behaviors, specifically excessive pricing that exceeds actual cost increases, the hoarding of products to create artificial scarcity, and secret agreements between competitors to keep prices high.
Dr. Mwemba warned that the CCCC will be unapologetic in penalizing firms that attempt to use the crisis as a pretext for exploitation.
“We wish to warn undertakings, especially those with a business presence in COMESA, that we shall unapologetically, together with the Member States, enforce competition and consumer laws to the letter and spirit to ensure that the durability and confidence in markets is not eroded,” said Dr. Mwemba.
However, the commission also recognizes that these are not normal times. In rare cases, businesses may need to collaborate in ways that usually seem anti-competitive just to keep the economy moving or to address a major public interest.
Under Regulation 39 of the COMESA Competition and Consumer Protection Regulations, companies can apply for special authorization. If a business can prove that the benefits of their agreement outweigh the harm to competition, the CCCC may allow it. This serves as a vital safety valve for regional resilience, ensuring that cooperation happens legally and transparently.
“The CCCC stands with honest businesses and consumers during this challenging period,” Dr. Mwemba concluded, appealing to the public and the business community to report any suspicious market interactions.
For the commission, maintaining the integrity of the market is no longer just a regulatory goal, it is the only way the region will remain resilient through this global storm.