Walmart Stores is committed to working with South African suppliers, it said on Friday, amid worries its acquisition of a 51% stake in Massmart would expose Africa’s biggest economy to cheap imports.
“We share the need to be sensitive to the local supply chain, and we are committed to working closely with local suppliers,” the world’s biggest retailer said in a statement.
Walmart, famous for its low prices, is the last stages of taking control of South African wholesale retailer Massmart for $2,3-billion in a deal that has drawn opposition from the government and unions.
Three government departments, led by the economic development department, are expected to ask the competition authorities at a hearing next month to attach conditions that include a commitment from the Arkansas-based company to use mostly domestic suppliers.
The government said the deal, if approved without conditions, would open floodgates of imports that would undermine domestic manufacturers. — Reuters