Real-Life Monopoly in Zimbabwe

By: Jannes van der Merwe & Joshua Eveleigh (African Antitrust)

On October 3, 2024, the Supreme Court of Zimbabwe (SCZ) delivered a judgment in the case of Competition Tariff Commission v. Ashram Investments (Private) Limited and Others, overturning the decision of the Administrative Court (the “Court a quo”). The Administrative Court had previously set aside the order issued by the Competition Tariff Commission (CTC), the appellant in this matter.

The dispute originated in 2014, when the CTC rejected a merger application in which Ashram Investments sought to acquire control of Profeeds and Produtrade. The CTC denied the merger on the grounds that Profeeds and Ashram—wholly owned by Innscor—held shares in National Foods and Irvines (collectively referred to as “the Respondents”). The proposed merger was deemed likely to create a monopoly for Profeeds and National Foods in the stock feeds market. Despite this rejection, the Respondents proceeded in 2015 to merge the entities and acquired a 49% stake in the target companies, allegedly to bypass the regulatory framework.

This move enabled the Respondents to gain an increasingly dominant position in the vertically integrated stock feeds market. Innscor, through its subsidiaries Irvines and National Foods, operates across multiple segments, including stock feed production, egg production, and day-old chick supply. Similarly, Profeeds specializes in manufacturing stock and poultry feed.

In 2019, the Respondents formally notified the CTC about the implemented mergers. Following an investigation, the CTC determined that the mergers violated Section 31(5) of the Competition Act [Chapter 14:28] (“the Act”). The CTC ordered Ashram to divest from Profeeds and announced its intent to impose penalties for these contraventions. The Respondents were given the opportunity to present their case in response to the CTC’s proposed enforcement actions…

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