Wal-Mart Stores Inc, the world’s largest retailer, has applied to Zambia’s Competition and Consumer Protection Commission to buy Massmart Holdings Ltd.’s operation in the southern African country, the commission said.
A final decision on whether to let the company operate in Zambia will probably be made before Feb. 26, the Lusaka-based competition agency’s spokesman Brian Lingela said in an e-mailed response to question yesterday.
“They are seeking authorization for the acquisition of 51 percent of the issued share capital of Massmart in Zambia,” he said.
Wal-Mart is seeking to buy 51 percent of Johannesburg-based Massmart to help boost sales internationally. The South African company operates Game stores in Zambia. Massmart shareholders are to vote on the transaction on Jan. 17.
The commission wants to ensure Wal-Mart doesn’t “restrict or distort competition to an appreciable extent in the relevant market,” Lingela said.
[http://www.bloomberg.com]
Wow now that would be something … Coz wall mart would be a one stop shop .. Everything under one roof ….. Yapya competition .. Provided the keep the same standards .
The only problem about walmart is that they under pay the workers . So zambian workers beware.
Wal-Mart even though it originated from the USA is filled with Chinese products. It will be good for the physical infrastructure but will not good for the local industries in Zambia.
Walmart quality products fits Zambian markets, with all the maliposas and sofia shoes. It would be really good for Zambians. Just hope the shops will be called Wal-mart. They should be bigger than shoprite, stock kapenta and 3D Tvs under one roof.
ba 2,mwalishalila,u just follow wind without making ur own reaserch.dont just be filled with a demond of finding problems in everything.such pipo like u are called social critics who blame govt,weather,food for their problems.Be possitive man u are in USA….and u know that USA does not do much of manufacturing or production but most of it is done in China.Including the things u are consuming in US.Academicians lets respect research.this is good for not only zambia but Africa….more competiton the better the quality of service to the local pipo.Psitivity in life is good.dont be like the POST or opposition in developing countries who have different lenses.
Let Walmart go to Zed so people know that everwhere in the world Chinese products are the staple. People should get to know that Taiwan in a non entity.
This would be a good development, however our crazy government would give them 5 years tax free as part of the deal, which in longrun will work on the disadvantage of Zambian workers who are tax payers, coz wal-mart will make more profit without paying tax or royalties to government.Otherwise we welcome wal-mart.
PLEASSE DO NOT ALLOW WAL-MART IN ZAMBIA…NOT ALL THAT GLITTERS IS GOLD- ZAMBIANS DO NOT BE SIMPLE MINDED. WAL-MART WILL KILL OFF THE LOCAL BUSINESS. IF EVEN HERE IN THE U.S CERTAIN COMMUNITIES DO NOT WANT WAL-MART FOR THE SAKE OF SAVING THE LOCAL SMALL BUSINESSES WHAT MORE MY POOR ZAMBIA???? WE SIMPLY DO NOT HAVE THE CAPACITY TO CONTAIN WAL-MART. THAT WILL SPELL THE END OF LOCAL BUSINESSES WITHIN A 300 KM RADIUS OF LUSAKA (ASSUMING IT IS BASED IN LUSAKA)….AGAIN FOREIGNERS WILL WIN…ZAMBIANS WILL LOSE.
walmart? katwishi?Well, if it is good for America ,it should be good for Zambia too.
Nomba lwanya pa z.Walmart commonly known as uncle sam will spoil the business for sme especially if they will venture in mega store line,na ba shoprite bonse kunya,koseni bangwele mwalya fyafula
This is only because Zambia is now in the top ten of the WORLDS fastest growing economies. With Mr Sata we would be among the bottom ten economies. Just like the good old Zambia. These guys would not just open shop anywhere. See the Westerners flooding Zambia looking for work in the very near future. Illegal immigrants will be coming coming from the West not before long. The West is finished. Some African countries are now the future
Zambia among the top ten my foot….these statistics have not helped the mother breaking the stones along Chaisa road or the teenager with a distinction trying to get a place at UNZA. U MMD fanatics are the waste people in the world. Let Wal-Mart come and spur up some competition around to the benefit of the consumer. We are tired of the MWADYA MWEKA DADI…..ALL WELL meaning Zambians know that this country has the ABILITY to develop at around 10%-12% growth rate per annum. why do we let ourselves be cheated so cheaply by the so called leaders in power with the meager-st development?
To some measure walmart is okay.It would also be unwise not heed the warnings of #s1,2,7 &9 on the negatives of walmart.Truth is they do kill local businesses due to their purchasing power.They dictate the terms/price at which you supply to them.That is how they killed plastic,tv,toys & clothing industries in USA and went to china.Zed does not have the massive economics of scale to manufacture for walmart competitively thus they’ll still source from china.
Zambians need to stop being contented with just being employees,learn from these companies,start their own and start to venture out as investors too in other countries as zed will never develop if we’re just smalltime spectators.
i hope they will make them build their own store
This is interesting i wouldn’t be surprised if the Zambian government refuses. Its surprising that at times when the Zambian people are excited about something good, governments turns it down. e.g when vodafone wanted to start operations they were rejected by the government also when Vodacom wanted to start operation the government refused they wanted another company.
The Best way is not to get excited now, what we need to do is to get excited only after government accepts. The good part is that they are buying massmart so that way its likely government will accept just like it happened for MTN bought Telecel.
Otherwise its a good development.
Game is already here. Walmart will just take over the game store.
#13 Vodacom was prevented from coming because Govt wanted to protect the interest of Lap Green!!
That will be something.While this is good for consumers, without proper mechanisms in place, I feel and fear for smaller retailers, the will just shrivel and die
govt shud just put in measures to promote local products to such foreign investors. this will raise quality for local products…otherwise walmart coming is good thing:)
#12 ENKA RASHA – fantastic point of view.
But zambians are funny ,how can you celebrate a dominant multinational company thats known worldwide but bankrupting local businesses. Zambians are just too obsessed with flashy looking things that make them feel rich rather than actually building wealth. I hope zambia has some good competition rules to stop wal-mart from dominating markets so as save the small local businesses.
#2 wewashalila niwebo.Walmart is not as great as you think.Here in the u.s they are pilloried for their low wages and poor conditions of service.Goods produced at cheap labour coupled with law wages makes them keep their prices low which gives an unfair competitive advantage over other retailers.There are areas where local communities has blocked the entry of walmart.Having said that,I will hasten to also say that it MIGHT be good for Zambia because they do sell a lot of stuff.The governement though should mandate that they carry some of the locally made products such as groceries and clothing.Not just those made cheaply by American companies in China.
Oops! I meant #4 at 21.
What I see is a normal business transaction and in my book will only result in change of mail from there Manda Hill Branch from Games Stores to WalI-mart. Not sure if there plan can include putting in any new shops.
why cant yo zambian government operate its own chain of supprmarkets?foolish government of zambia
Ba L.T. I note that you are permitting empty heads like #24 to use obscenities. Kindly delete that stupid name. Then, and more importantly, it is folly for a level headed human being to wish for government owned stores when we live in a liberalised dispensation. Also, I find it hard to be believe most of the chaps commenting have seemingly closed their eyes to the favourable economic and investment climate prevailing in Zambia. Colleagues, brace yourselves for more of such investment. May those with the intellect to read and understand basic developmental economics research on the amount of foreign direct investment zed received last year; it was astonishing. Welcome wal mart
Good News i gues….we need to encourage competition. however I would like to urge our Govt to look into the imported stuff. Guys every Nation supports its locals first. you can not allow imports to flood the markets at the expense of the LOCAL PRODUCERS…..there must be a window to all these. Local producers are not growing because of poor policies hindering the activities of this sector. Shikapwasha stop the rot and concentrate on the HOW we could lift up these locals to boost real economic activities even after copper exit>>>> Mutati this is your baby…..you need to look into this factor…Zambia has a lot of potential but we sing this song and what is on the ground is opposite… we need to say ZAMBIA has scored so much on Agriculture….we are tired of this potential which idle
I don’t see this as being beneficial to Zambia…it might be convenient to find a lot of goods in one store, but Wal-Mart (along with other big stores) will drive the small businesses under. Those people will have to seek employment elsewhere, such as with Wal-Mart, and Wal-Mart is infamous for its adversion to unions, its willingness to make workers work overtime without pay or for less than minimum wage, its lack of benefits, etc. It is a degrading experience to work at a minimum wage job for a large company…There may be poverty in Zambia, but eliminating small businesses and competition will only worsen it…the only people that will benefit are those at the top.