What This Means for Businesses
The MoU establishes formal cooperation mechanisms between two major regional competition authorities, affecting businesses operating in any of the 21 COMESA member states and 8 EAC partner states. Notably, six countries hold membership in both organizations, creating a complex regulatory landscape that this agreement seeks to streamline.
Key Areas of Cooperation
The MoU establishes three primary areas of enhanced collaboration that will significantly impact regional business operations:
The authorities will share information during cross-border competition investigations and prioritize joint investigations to address anti-competitive practices spanning multiple jurisdictions, increasing the likelihood of detecting cartel activities and other violations across borders;
Merger review coordination will provide enhanced certainty for businesses planning acquisitions in the region through reduced duplication in enforcement processes and more predictable regulatory outcomes for cross-border transactions; and
The agreement facilitates coordinated market inquiries and studies across jurisdictions, shared technical expertise and capacity building initiatives, and a harmonized approach to emerging competition issues, creating a more unified regulatory environment.
Practical Implications
For businesses operating across both regions, this enhanced cooperation brings both opportunities and challenges. Companies with operations spanning EAC and COMESA jurisdictions should expect more coordinated scrutiny of their business practices, but also benefit from streamlined merger notification processes and more predictable regulatory outcomes. The increased detection capabilities for cross-border anti-competitive conduct means organizations must review their compliance programs to address the new coordination mechanisms, understand how information sharing may affect investigation processes, and prepare for potentially more efficient but thorough regulatory reviews. This shift toward coordinated enforcement requires a more sophisticated approach to regional competition law compliance.
Strategic Recommendations
Compliance Audit: Businesses should review their competition law compliance across all EAC and COMESA jurisdictions where they operate.
Legal Strategy Alignment: Consider how this enhanced cooperation affects litigation and regulatory strategies in both regions.
Merger Planning: Factor in the improved coordination when planning acquisitions or mergers in the region.
Stakeholder Engagement: Maintain open dialogue with both authorities through their established focal points for implementation monitoring.
Looking Forward
This MoU represents an administrative cooperation as it signals a developing regional competition framework. The commitment to annual work plans and regulatory review suggests ongoing evolution in enforcement approaches.
The agreement builds on nearly a decade of informal cooperation since EACCA's establishment with CCC having provided technical support throughout EACCA's development. This formalization creates a stronger foundation for addressing the complex competition challenges of integrated regional markets.
Our Perspective
This development reflects the growing complexity of African competition enforcement. Businesses operating in these markets should view this cooperation as an opportunity for greater regulatory certainty, while ensuring robust compliance frameworks are in place to navigate the enhanced enforcement capabilities.
For guidance on competition law compliance across EAC and COMESA jurisdictions, or assistance with cross-border merger planning, contact our competition law team.