Reasons Most of the Biggest Monopolies do Business in Africa.

Reasons Most of the Biggest Monopolies do Business in Africa.

With the advent of a free market has come the potential for the formation of monopolies across different sectors in different markets. These organisations are known to bulldoze competitors and occasionally overstep their bounds. In a monopoly, there is no incentive to stave off stagnation. These organisations potentially wield enough power to influence consumers while offering products or services that may no longer benefit the consumer. Here are a few examples of Monopolies doing business in Africa:

De Beers:

Founded in 1888, De Beers has grown to encompass every aspect of the diamond trade and has a well-documented and well-established history of engaging in monopolistic practices. The main complaint levelled against the company has been its purchasing and stockpiling of rough diamonds in order to inflate prices by controlling the available supply. It also has a control of a majority of the diamond mines in South Africa, Namibia and Botswana. The history of the African continent is rich with stories of colonisation. This organisation was founded on principles that were based on the rampant pilfering of African resources for the benefit of Caucasians.  Today the company continues to operate due to the highly lucrative nature of the diamond industry.

Google:

It began as a simple search engine and has managed to dominate every tech-related pursuit. Its offerings have expanded to offer email services, GPS technology, online data storage, calendar services and other innovations. This is probably why it controls more than 90% of market share. The African continent presents a plethora of opportunity for the tech giant. With rapid growth of technological endeavours in developing countries across the continent, Google continues to invest resources in expanding its footprint in these countries.

Apple:

Even though Microsoft continues to dominate the computer operating systems market – more so in countries outside of the US – Apple continues to demolish competitors in the gadget sector. The most popular smartphone, the iPhone, continues to cement its popularity within African markets. Mac laptops are also fast gaining popularity, especially due to many African industries working on par with international standards.

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