Johannesburg - The government wants Walmart to boost a fund for local suppliers to R500m from a planned R100m, Business Report newspaper said on Thursday.
South Africa approved Walmart's bid for a controlling stake in local retailer Massmart in May, but imposed conditions on the deal, including the creation of a R100m fund for the development of local suppliers.
The government now wants that fund increased to R500m, Business Report said, citing a government source.
"We believe the conditions should be tougher given the tremendous concerns that are created by this merger," the paper quoted the source as saying.
South Africa's service workers union and the government departments are currently appealing the decision by anti-trust regulators to let the deal go through.