South Africa’s federal competition tribunal gave the Walmart corporation a green light to enter the country’s market and buy 51% of the Massmart company’s stock. This is a huge deal due to the fact that Massmart is one of Africa’s largest retailers. Because Walmart was granted this permission on very few conditions, Cosatu, South Africa’s largest labour federation has campaigned against allowing Walmart into the country.

What does this mean for Africa’s already low employment rate? Walmart’s consistent competitive prices will continue into South Africa and will greatly affect small businesses. Competition will be scarce as no one would be able to afford to compete against Walmart; even though they are due to their unethically low labour costs in developing countries.

What strikes me the most is that South Africa’s competition tribunal asked Walmart to refrain from laying any workers off for at least two years. What happens after those two years? Although South Africa is one of the more developed countries on the continent, their unemployment rate hovers around 25% within the past five years. It seems as though Walmart’s influence in the Massmart corporation in South Africa will have a crippling effect after the two year-long promise is finished.

http://www.southafrica.info/doing_business/businesstoday/businessnews/732588.htm

http://english.aljazeera.net/business/2011/05/2011531172516126893.html