A History of Collusion: The Persistence of Cartels in South Africa

  • Liberty MncubeEmail author
  • Sunél GrimbeekEmail author
Part of the International Law and Economics book series (ILEC)


This chapter discusses the persistence of cartels in South Africa. In 1996, South Africa’s first democratic administration took significant steps to liberalize many of the formerly price regulated markets. Deregulation and liberalisation led to the break-up of regulated cartels. We argue in this chapter that liberalisation may have inadvertently, by increasing competition in formerly protected markets, have increased the incentives for firms to participate in cartels.


History of collusion Liberalisation of regulated markets Firm incentives 


  1. Bork, R. H., & Sidak, G. (2013). The misuse of profit margins to infer market power. Journal of Competition Law and Economics, 9(3), 511–530.CrossRefGoogle Scholar
  2. Groenewald, J. A. (1964). The effects on national economic welfare of economic interference in favour of agriculture. South African Journal of Economics, 32(2), 283–293.CrossRefGoogle Scholar
  3. Harrington, J. (2015). Thoughts on why certain markets are more susceptible to collusion and some policy suggestions for dealing with them. Global Forum on Competition, OECD. DAF/COMP/GF(2015)8.Google Scholar
  4. Kirsten, J. F., & Van Zyl, J. (1996). The contemporary agricultural policy environment: Undoing the legacy of the past. Cape Town: OUP.Google Scholar
  5. Leach, D. (1994). The South African cement cartel: A critique of Fourie and Smith, 1994. South African Journal of Economics, 62(3), 254–279.CrossRefGoogle Scholar
  6. Mncube, L. (2014). The South African wheat flour cartel: Overcharges at the mill. Journal of Industry, Competition and Trade, 14(4), 487–509.CrossRefGoogle Scholar
  7. Vink, N., & Kirsten, J. (2000). Deregulation of agricultural marketing in South Africa: Lessons learned. The Free Market Foundation, Monograph.Google Scholar

Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.Competition Commission South AfricaPretoriaSouth Africa

Personalised recommendations