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Making the Walmart Deal Work for South Africa – a New Approach is Needed March 17, 2011

Posted by warwicksworld in Uncategorized.
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Walmart and job creation – How can the whole of SA benefit?

Walmart Deal SA

Two reports in the local press got my attention this week. The first was that Trevor Manuel (Minister of Planning) admitted that in spite of vast expenditure over the years; service delivery has in some areas been a failure. The second was that Rob Davies – the minister of trade – was waiting to hear the ‘Deal and more details’ from Walmart who are seeking approval from the Competition Commission to buy 51% of Makro/Dions etc.

My view on all of this is that South Africa should ask upfront for a permanent SA trade delegation to be stationed at Walmart head office for the prime purpose of promoting SA companies’ products. Let’s face it; Walmart is probably the largest buyer of consumer goods in the world. We should be encouraging (forcing) Walmart to take buying our nations products seriously.

If we can build cars for Mercedes Benz and Volkswagen for worldwide delivery then we can manufacture ‘widgets’ for Walmart. It’s a simple as that. We couldn’t do it without VW’s and Mercedes Benz’ head office support and nor can we expect South African companies to do so without Walmart’s support. We just need them to take us seriously. That’s where Minister Rob Davies should, and must help. We just need to be humble and transparent about our needs and just say to Walmart: You have power to make a difference to SA manufacturing – we need your help! When the deal is done we can’t run to Walmart with demands!

I would like to finish this article by the end of the month and would appreciate it if you could post your comments on my blog. I would appreciate any comments or suggestions as I personally believe the Walmart deal can reduce the chronic unemployment in our country.

See more articles by Warwick Smith-Chandler at www.bizassist.co.za

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Comments»

1. Denise Momberg - March 17, 2011

Your comment re: SA Trade Office at Walmart. Good idea but are South African companies able to fulfill the requirements of Walmart’s Sustainability Index for their suppliers?

You may contact me by email to discuss further

2. warwicksworld - March 18, 2011

Denise, Thanks for posting your comment. I agree with you that Walmarts sustainability policies may well be onerous. I am not sure whether your definition of sustainability relates to the ability of suppliers to meet Walmarts demand or the more recent usage which refers to the ‘Green’ elements of the provisioning and manufacturing processes. With regard to meeting Walmarts supply requirements-I believe that with transparency and sincerity from Walmart combined with a firm desire to buy SA goods and supporting ‘expansion and supply’ finance from banks and SEDA/DTI divisions SA companies will rise to the occasion. On a smaller scale this happens with SME’s receiving ‘large’ tenders. It just needs to be cranked up. Sure its going to be a challenge-but it is I believe the best export-led-growth chance we have had for a long time. And it will be directed to our manufacturing industries which is what we need, desperately.

3. Wilford - January 6, 2015

Yesterday i spent 300 $ for platinium roulette system , i hope that i will make my first cash online


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