Johannesburg - Whether Walmart ultimately succeeds in buying
a controlling share of major South African chain Massmart Holdings [JSE:MSM]
could affect whether other Americans come to do business on the continent, a US
Chamber of Commerce official said Thursday.
An appeals board for South Africa's Competition Tribunal is
currently considering challenges made by agencies and unions who question the
approval of Walmart's bid. The government agency is charged with discouraging
monopolies and protecting consumers.
Myron Brilliant, senior vice-president of the US Chamber of
Commerce's international division, said Americans are closely watching the
"How Walmart is treated does have some bearing on how
potential investors look at the continent," said Brilliant, who was
leading a chamber team visiting South Africa this week.
According to South African government figures, total
US-South African trade last year was more than R100bn, compared to R173bn with
Brilliant described South Africa as a gateway to the rest of
Africa, and he said increasing trade between the US and South Africa could
create jobs in both countries.
Both countries "want growth. We want to see economic
growth, and we want to see job growth," Brilliant said. "The message
is clear: jobs, jobs, jobs."
Unemployment in the US in January was 8.3%. In South Africa,
unemployment figures of 23.9% released earlier this month for the end of 2011
were applauded, because that represented the biggest growth in employment for
South Africa since its 2009 recession.
Earlier this month, South Africa's president announced
ambitious infrastructure projects. Brilliant said American companies will want
some of the business that is likely to generate. But they needed reassurance.
"There's been some uncertainty about the direction of
the government," he said.
On mining, South African policy makers have repeatedly said
nationalisation is not on the agenda. But some within the governing ANC party
continue to raise the issue, and Brilliant said he may not be able to take a
clear answer back to investors after his first trip to South Africa.
Brilliant said he also needed to learn more about the
reality of a labour force with a reputation of being quick to strike. But he
noted a number of US companies are already working in South Africa, proof that
management-labour issues can be resolved.
The US Chamber of Commerce calls itself the world's largest
business organisation, representing more than 3 million businesses ranging from
small shops to international corporations.