avg. numbernumber of competitors(micro, small, and medium)number of competitors(large and very large)a. Market share

“
BEHIND
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THE
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BORDER
” CONSTRAINTS ON AFRICAN
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ASIAN TRADE AND INVESTMENT FLOWS
195
Market Entry and Exit
Barriers to entry and exit in domestic markets are fundamental impediments to competition in Africa. Such barriers arise from different sources.
Some are formal policy-based barriers, either for an intentional purpose of deterring new entrants to protect domestic incumbents or hangovers from the past command-and-control domestic economic regimes (for example,
state-owned enterprises. The privatization efforts in African countries that have taken place in the past decades have created conditions for lowering entry and exit barriers.
Still, certain types of government-generated entry and exit barriers continue to constrain firm turnover in Africa. Some of these are cumbersome administrative procedures that make entry and exit costly. The height of
FIGURE 4.6
Local and Foreign Import Competitors by Country and Sector
0 2
4 6
8 10 12 14 16 avg. number of local competitors avg. number of foreign import competitors textiles non-oil minerals and metals nondurable nonconstruction services machinery construction chemicals agriculture and food textiles non-oil minerals and metals nondurable nonconstruction services machinery construction chemicals agriculture and food textiles non-oil minerals and metals nondurable nonconstruction services machinery construction chemicals agriculture and food textiles non-oil minerals and metals nondurable nonconstruction services machinery construction chemicals agriculture and food
Tanzania
South Afruca

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