MP raises alarm over poultry monopoly

Lawmakers have called for an investigation into alleged monopoly practices in the local poultry industry, warning they may be squeezing out local competitors.

Kubuta Member of Parliament (MP) Masiphula Mamba called on the Ministry of Commerce, Industry and Trade to take action against the alleged market dominance.

Speaking during the debate on the ministry’s first-quarter performance report in Parliament yesterday, Mamba alleged that a single business operator had established a dominant presence across almost every stage of the poultry value chain, creating an uneven playing field for other entrepreneurs.

According to the legislator, the local business operator is involved in the production and supply of chicken feed, day-old chicks, eggs and broiler chickens, effectively controlling multiple segments of the industry from input supply to the final product.

“There is one business person in the industry that is in all the production lines and this presents an unfair business practice for Emaswati who are operating in that sector,” Mamba told Parliament.

He urged the ministry to determine whether the alleged concentration of market activities was negatively affecting competition and limiting opportunities for other local participants in the poultry sector.

Responding to the concerns, Minister of Commerce, Industry and Trade Manqoba Khumalo said any allegations of monopoly or anti-competitive conduct fall within the mandate of the Competition Commission.

He explained that the commission is responsible for assessing whether there are sufficient grounds to investigate allegations of anti-competitive behaviour.

“There should be someone raising the issue of monopoly with the Competition Commission to give grounds for the investigation to be instituted,” Khumalo said.

The commission would then determine whether any company is engaging in conduct that violates competition laws.

A monopoly exists when a single company gains substantial control over the supply of a product or service, enabling it to influence prices, market access or the conditions under which competitors operate. While simply being a large or successful business does not constitute a monopoly, competition concerns arise when market dominance allows a firm to exclude rivals, limit consumer choice or create barriers that prevent new entrants from competing effectively.

In some industries, companies operate across different stages of production — a practice known as vertical integration. This can improve efficiency, reduce costs and ensure product quality. However, competition concerns may arise if such integration enables a dominant firm to disadvantage competitors by restricting access to essential inputs, distribution channels or customers.

Beyond the poultry industry, Mamba welcomed the ministry’s announcement that about 4 850 jobs will be created in the near future. However, he argued that government should measure investment success not only by the number of jobs created but also by the quality of employment offered.

He expressed concern that some workers continue to earn salaries as low as E1 200 per month, which he said were insufficient to cover basic living expenses such as accommodation and family welfare.

“Let’s accord the title of investor only to those business people who give jobs that will have a favourable impact on the lives of Emaswati,” he said.