By Omar Bah
The most recent competition authority in West Africa has been officially launched. It will oversee mergers and address anti-competitive practices in 15 countries, including those involving international companies. With a strong commitment to fairness, the authority aims to ensure a level playing field for all businesses.
Known as ERCA, the Economic Community of West African States’ Regional Competition Authority, it will have jurisdiction over transactions in various countries, including The Gambia, Nigeria, Ghana, Côte d’Ivoire, and Senegal, once fully operational. Simeon Koffi, the executive director of ERCA, mentioned that the authority has conducted market studies in several sectors, such as transportation, agriculture, pharmaceuticals, and digital markets. Alleged anti-competitive practices in these areas have been observed, and ERCA, with its proactive approach, intends to investigate these claims. Koffi also noted that the enforcement actions may impact international firms operating in West Africa.
ERCA has received complaints since its establishment in 2019 but has faced challenges in taking enforcement actions due to the absence of an advisory council. However, this issue has been addressed with the council’s inauguration in Banjul. This move empowers ERCA to review mergers valued at $26 million and above involving at least two member states. The authority will prioritize critical industries, although its scope may be limited by funding and staffing constraints.
Currently, ERCA operates with a team of ten staff at its headquarters in The Gambia and plans to recruit 17 more professionals in 2025 and engage consultants. The authority’s limited resources are provided by its parent organization, the Economic Community of West African States (ECOWAS), a political and economic union comprising 15 countries with a combined population of about 425 million. Koffi mentioned that the team will not rely solely on complaints before taking action and intends to expand its initiatives, including considering cooperation agreements with other regional competition authorities to prevent overlapping efforts.
