Business
South Africa seeks guarantees from Walmart
South Africa’s government is calling for more guarantees that Walmart’s foray into the country will not hit local suppliers and cause job losses. One minister has even described the retail giant’s buying power as a threat to food security.
The world’s biggest retailer announced in June that it had completed its US$2.4 billion acquisition of a majority stake in local firm Massmart after winning approval from South Africa’s Competition Tribunal.
But the merger has raised concerns among South African officials, with three government departments filing a request for a review of the deal, calling for more binding conditions.
In a joint statement last week, the ministers of trade, economic development and agriculture said the government believed “that given Walmart’s global purchasing power, the merged entity will significantly increase imports and reduce purchases from local suppliers in South Africa.
