Abstract
The dissertation analyses the market structure and market power in the mobile money sector in Zimbabwe, and the regulatory challenges these pose. It focuses on the competition complaint made by the banks against EcoCash in 2014 and the steps which followed this. The analysis involves the assessment of the structure of the mobile money sector in Zimbabwe, the conduct of EcoCash, and the effectiveness of the regulatory toolkits used by the regulators to address the competition concerns raised. The research uses quantitative measures of market outcomes and qualitative methods to consider the regulatory performance. The role of regulation is assessed through interviews with industry players and comparing the interventions made by regulators of peer countries. The research found that competition in the mobile money sector exists on two levels, that is, within the three mobile money providers and between the mobile network operators and the banking system. It also found that the EcoCash prices have been high in comparison to its market rivals as well as to its peer country mobile money providers. Assessment of competition in the mobile money sector found that there is very limited competitive rivalry imposed on EcoCash by fellow mobile money operators and the banking system, thus inferring market power on EcoCash. Assessment of regulation in the sector found that regulation was not effective in restraining EcoCash from abusing its market power.