Tag Archives: Monopoly
Monopoly: Latest News
Dana Sanchez, 11:20 pm
Foreigners have been invited to invest in Ethiopia’s state-owned shipping and logistics company. Will telecommunications and banks be next? Ethiopia is one of the last African countries to have a state monopoly in telecoms. The U.S. hopes to bring its technology, know-how and managerial skills to Ethiopia. The American Chamber of Commerce of Ethiopia was launched in November. “The private sector needs a level playing field that allows fair competition with state-owned enterprises,” a U.S. stakeholder said.
Dana Sanchez, 2:22 pm
In June 2016, Angolan President José Eduardo dos Santos controversially appointed his billionaire daughter Isabel head of the state-owned oil company Sonangol. The collapse of oil prices is nothing new, but the nature of Angolan politics and the stranglehold of the dos Santos family are threatening economic collapse. Under Isabel’s watch, Sonangol can’t afford to pay for toilet paper, never mind repay $1.135 billion in debt. Soon after Isabel became CEO of Sonangol, Angola pulled out of discussions with the IMF for a $4.5 billion loan. Isabel’s banking monopoly is the reason, an analyst said. The richest woman in Africa, Isabel owns stakes in five of the largest Angolan banks.
Opinion: State-Owned African Electricity Monopolies Should Stop Seeing Off-Grid Solar As CompetitionBy Staff, 12:02 am
Manufacturers of off-grid power systems say they can’t keep up with demand in Africa. Many policymakers in Africa see off-grid solar and traditional technologies as competing and fret that off-grid power companies will eat into the customer base of state-owned electricity monopolies. Instead they should encourage the competition. It’s lifting the burden of rural electrification from the state and allowing the state to concentrate investment on improving power supplies for large-scale industrial growth.
Dana Sanchez, 11:12 am
In Africa, proposed consolidations of seed and agrochemicals industries will result in a bigger push for genetically modified technology. For sub-Sahara’s predominantly small-scale farmers already operating at a low profit margin, greater consolidation means less choice for them and consumers. These proposed mergers are not just about seeds and pesticides. They’re about controlling big data, DNA and intellectual property, stakeholders say.
Dana Sanchez, 11:12 am
Electricity distribution in Ivory Coast is controlled by a unit of Eranove, which is 56 percent owned by Washington, D.C.-based private equity firm Emerging Capital Partners and 19 percent by Paris-based Axa. Eranove also has a stake in the country’s water distribution. Eranove says it operates an installed electricity capacity of over 1100 megawatts in Ivory Coast. That’s more than half Ivory Coast’s power production capacity.
Dana Sanchez, 1:38 pm
The JSE plans to open a second office in Cape Town — its first outside Johannesburg — a move that ‘s likely an attempt to defend its territory from new players who want competing stock markets. One of the competitors is the 4 Africa Exchange. Chichi Maponya will represent black economic empowerment partner, the Maponya Group, on the 4AX board. Check out 4 competitors that want to disrupt the Johannesburg Stock Exchange monopoly.
Staff, 12:01 am
Ethiopia may emerge as an African powerhouse like South Africa and Nigeria and ahead of Kenya, its regional rival. But the Ethiopian government doesn’t let in retailers such as Shoprite or Nakumatt. “The service sector here is one of the most restrictive in the world,” says a frustrated foreign banker. The official reason for keeping Ethio Telecom a monopoly is that the government can pour its annual $820m profit into roads. If the government opened the airwaves to competition as Kenya has, it could probably sell franchises for $10 billion. Safaricom is Kenya’s biggest taxpayer.
Staff, 5:12 pm
In Ethiopia, where used cars often gain value due to high import tariffs, a website matching buyers and sellers gets 316,000 hits a month. But the startup hasn’t been able to expand beyond Addis Ababa. Poor Internet access and a government monopoly on mobile telcoms stifle private enterprise. The private tech sector may not survive, says a local tech hub founder. The government says the economy will exceed 10% growth this year.
Dana Sanchez, 9:07 am
A merger of the world’s two largest brewers — AB InBev and SABMiller — is raising fears of a monopoly with consumers facing higher prices and lower competition in the market. Multinationals are losing market share to craft beers in the U.S. With growth flat or decreasing in North America, the mega brewers have set their sights on Africa, where home brew still dominates.
Dana Sanchez, 2:10 pm
Safaricom, East Africa’s largest mobile-phone operator, says proposed legislation seeks to punish the company for its dominant market share. The company complains that the new legislation was drafted without its input. Safaricom controls 75 percent of mobile-money transfers through M-Pesa, and says it welcomes competition. Rival Bharti Airtel joined forces with Kenya’s largest bank to provide some.
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