IDC sees Wal-Mart's entry as an opportunity

20 Mar 2012

The Industrial Development Corporation (IDC) sees Wal-Mart's entry into the SA market as an opportunity, rather than a threat, says IDC CEO Geoffrey Qhena.

Answering questions from Parliament's Portfolio Committee on Economic Development on Tuesday, Qhena said: "We see an opportunity to work with them [Wal-Mart] to increase local procurement not only through agriculture, but with everything they need to provide them with locally produced goods."

Qhena indicated that any other issues, such as the US retail giant's ability to force out local companies, would be left up to the Competition Commission.

The Competition Appeals Court approved Wal-Mart's purchase of 51% in Massmart for R16.5 billion earlier this month.

However, the court said that a task team consisting of one representative from government, one from the SA Commercial Catering and Allied Workers Union, and one from Wal-Mart would have to conduct a study on how local companies would be affected by the merger.

The task team will have to report back to the court with its recommendations by June.

Source: I-Net Bridge

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