Fin24

Secure jobs, Patel urges Walmart

2011-02-15 11:28

Cape Town - The proposed deal between Walmart and South Africa's Massmart Holdings (MSM) should support local procurement and job creation in South Africa, Economic Development Minister Ebrahim Patel said on Tuesday.

Patel said his department is in talks with both the US retailer and South African unions which oppose the deal.

Walmart has bid for a controlling stake in Massmart, but still requires approval from the Competition Tribunal. The Competition Commission has approved the deal with no conditions.

"What we would be seeking to ensure is that there is strong local procurement, that the South African supply base is supported and that our capacity to create jobs locally is highlighted and this is what the conversation with Walmart is about," Patel told reporters.

Comments
  • Mario Swart - 2011-02-15 11:39

    This is an admission that our productivity is low.

  • GMecon - 2011-02-15 11:54

    "Walmart has bid for a controlling stake in Massmart, but still requires approval from the Competition Tribunal. The Competition Commission has approved the deal with no conditions." It still requires approval but approval has been given with no conditions? I'm confused, is this a technical issue (i.e. something I don't know about the approval process) or just poorly written?

  • GMecon - 2011-02-15 11:56

    I see the error of my ways (CC and CT). Too much staring at the computer screen. Apologies...

  • MC - 2011-02-15 12:02

    So, Mr Patel. What about the China Town that pop-up everywhere that is used to dump cheap Chinese goods in the SA market? What will they have to do to support job creation? Why pick on Walmart?

  • Ian D - 2011-02-15 12:27

    Wonderful to support local producers. But lets rid ourselves of this freedom to strike at will, or you cannot hold them to support local industry.

  • Vickerman - 2011-02-15 13:00

    It is so damn predictable that Patel et al insist on protectionism - because they still have not figured out how a global economy works...then in a short while the low-income consumer (who would have benefitted the most from Walmart's pricing model) will be toy-toying in front of Walmart due to high prices. Go figure...

  • Insider - 2011-02-15 14:20

    @ GMecon. Good question. It should read "the Competition Commission has recommended the deal, with no conditions, for approval, to the Competition Tribunal"

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