Walmart talks to Gauteng about development funds

Walmart talks to Gauteng about development funds

RETAILER NEWS

Business Day - Nov 22nd 2011, 08:41

Walmart is talking to Gauteng about how the provincial government would use some of the funds set aside in the R16,5bn Walmart- Massmart deal to boost young entrepreneurs and the small business sector. 

This announcement by economic development MEC Qedani Mahlangu could support suggestions the government does not have a unified position on Walmart. Trade and Industry Minister Rob Davies , Agriculture, Forestry and Fisheries Minister Tina Joemat-Pettersson, and Economic Development Minister Ebrahim Patel are appealing against the Competition Tribunal’s approval of the Walmart-Massmart deal in the Competitions Appeal Court, arguing it would mean that local producers would suffer.

Massmart spokesman Brian Leroni said yesterday Walmart was still to establish an advisory committee for the fund, but the company was speaking to the Gauteng provincial government, which was interested in exploring collaboration on job creation.

"We have, since announcing the fund, received and responded to requests for information from interested parties, including inquiries from various provincial government officials."

This was after Ms Mahlangu said on Friday: "Walmart has got about R100m that has been set aside as part of their buying into Massmart in SA so we are going to be accessing some of those funds directed to youth entrepreneurs and small businesses."

The South African Commercial, Catering and Allied Workers Union demanded last month at the appeal hearing that Massmart’s R100m supplier fund be increased to R500m. The ruling on the appeal is expected before the end of the year.

This month, Deputy President Kgalema Motlanthe said the government was "happy" with Walmart’s investment. Massmart volunteered the R100m fund to develop local suppliers as a condition for the merger and invited the government and unions to join the new advisory panel to manage the distribution of the fund.

"We want to work together (on) decisions on distributing the money. Massmart has to report to the tribunal anyway on the developments of the fund and what we have done, so it will be a transparent process," fund manager Mncane Mthunzi said.

Ms Mahlangu told members of the Gauteng legislature that the government wanted to support small businesses and entrepreneurs with training, funds and mentorship programmes.

Democratic Alliance provincial MP Gavin Lewis said the government had to make the private sector genuine partners in setting strategic priorities and in identifying key structural and service delivery impediments to growth.

"Close alliances with business are, yet again, the only solution. Let each partner do what it is best at doing," Mr Lewis said.

Ms Mahlangu last month launched a public-private partnership youth programme, Y-Age , aiming to create 100000 youth entrepreneurs and more than a million jobs over three years.