ECONOMIST Sanele Sibiya said the current prevailing situation presented an opportunity for businesses to collude with regards to price fixing and anti-trust behaviours.
He said everyone expected prices to increase due to price shock disruptions and the ongoing war impact on fertilisers and Brent crude costs, which might see businesses implement increases even before cost pressures come on board.
He said consumers should be on the lookout for anti-competitive behaviour from different entities, with prices being relatively the same, thus indicating possible collusion.
Sibiya also mentioned knowing one’s supplier, whether they procure locally or regionally. He said a shift in prices locally before regional increases was a tell-tale sign of collusion.
Sibiya said post the upheaval, there was a need to ensure that regulations and people return to market competition.
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He said it allows a situation where people collude to fix prices, and they need to be unbundled, hence the need for the Eswatini Competition Commission (ESCC) and other regulatory authorities to increase regulatory oversight; laws, sales divergence, market concentration and market shares included when the collusion comes to an end.
“Everyone wants to make more money in business and the current situation allows that. Shocks are never instant in the economy, especially ours, therefore prices changing in the short-term is a sign that producers or businesses are fixing prices and taking advantage of the news.
“During such upheavals and supply shocks, the situation of allowing the market as it would may lead us to a worse situation compared to when you allow them to act in concert, do combined sourcing and finding ways to manage prices. This is done so that we ensure a softer landing,” Sibiya said.
