Competition in the South African cement industry after the Cartel Dissolution of 1996 within the new government policies

Abstract

This study examines the state of competition in the South African Cement Industry after the cartel dissolution of 1996. The study further looks at the impact of the mining charter, which encompasses black economic empowerment to the industry. It argues that high investor risk exposure to the multinationals and rand-dollar exchange rate is key to high cement prices. It sees black economic empowerment as the competitive advantage and can assist in improving competition as well as alleviating exorbitant foreign investment. While cartel has been officially dissolved, the industry continues to maintain high cement prices, which increase successively from company to company, based on this; the study raises the question of tacit collusion.