The AfCFTA agreement has also included a competition protocol. The protocol has 28 provisions categorized under five parts
General Objective – provide the foundation for an integrated and unified African continental competition regime
The protocol incorporates provisions that prohibit activities that create unhealthy competition in the continental market. The prohibition aims on creating a healthy competition in the market. Governing anti-competitive practices has the advantage of lower prices and improvement in supply and quality of goods and services.
The protocol includes definitions of key provisions such as “anti-competitive business practices” which decide the practices that are to be considered incompatible with the proper functioning of the market. These include, amongst others, decisions on mergers and acquisitions, prohibitions of certain horizontal and vertical anti-competitive business practices or related practices that lead to market distortion.
The protocol established a continental competition body which has substantial power in implementing the protocol. An independent appellate which has the responsibility to review decisions taken by the Competition Authority with respect to competition policy matters under the Protocol is also established by the protocol.
