COMESA warns against profiteering as oil prices surge above $100

COMESA headquarters building

HARARE, ZIMBABWE – The Common Market for Eastern and Southern Africa Competition and Consumer Commission (CCCC) has issued a strong warning to businesses across Eastern and Southern Africa against profiteering and anti-competitive conduct amid surging global oil prices and escalating geopolitical tensions. The caution comes as conflict involving the United States and Israel against Iran disrupts global energy markets, pushing crude oil prices above US$100 per barrel, their highest level since 2022. The situation has been worsened by Iran’s reported blockade of the Strait of Hormuz, a strategic maritime corridor through which roughly 20% of the world’s oil supply passes.

The CCCC warned that the resulting fuel price increases and supply chain disruptions could create conditions for unfair business practices across the COMESA region, particularly in import-dependent economies such as Zimbabwe. CCCC chief executive officer Willard Mwemba said the crisis may tempt some companies to exploit consumers through unethical conduct.

“The CCCC is concerned that the Middle East crisis is likely to result in some market operators abusing the situation and engaging in anti-competitive conduct and unfair trade practices such as excessive pricing, collusion, hoarding, and price gouging,” Mwemba said.

He stressed that the commission would strictly enforce regional competition and consumer protection laws to maintain fair market conditions.

“The CCCC will deploy its full powers to detect, investigate and penalise infringements of the law to protect consumers and ensure markets remain fair and competitive,” he added.

Economists say the spike in oil prices is likely to have far-reaching consequences across COMESA member states, driving up transport costs, production expenses, and ultimately consumer prices. Fuel is a key input across sectors, including manufacturing, agriculture, and logistics, meaning sustained increases could accelerate inflation and deepen cost-of-living pressures.

“Oil price shocks tend to cascade through the entire economy, especially in regions heavily reliant on imports,” said a regional trade analyst. “Without strong regulatory oversight, this also increases the risk of opportunistic pricing behaviour.”

While taking a firm stance, Mwemba acknowledged that exceptional circumstances may require some flexibility in enforcement. He pointed to provisions under the COMESA Competition Regulations that allow companies to seek exemptions for certain agreements that may appear anti-competitive, provided they deliver broader public benefits.

“Certain conduct may be authorised if the benefits outweigh the negative effects, particularly in times of crisis,” Mwemba said.

The commission said it will work closely with national regulators across member states to monitor markets and respond swiftly to violations. Mwemba emphasised that maintaining trust in markets is critical during periods of economic uncertainty.

“The CCCC will not allow the crisis to be used as a pretext for collusion, exploitation, or deception. Maintaining trust in markets is essential to the region’s resilience, recovery and enhanced consumer welfare,” he said.

The warning underscores growing concern that global geopolitical tensions could quickly translate into local economic shocks, particularly in vulnerable economies. With fuel prices already rising, authorities are urging businesses to act responsibly to avoid worsening the burden on consumers.

COMESA competition commission warning