CC2016/03 Mandiriza, T., Sithebe, T. and Viljoen, M. (2016). An ex-post review of the Wal-mart Massmart merger.

This paper evaluates the impact of the Massmart Supplier Development Fund which was established as a condition to the Wal- Mart // Massmart merger in 2012. The purpose of the Fund is to response to the threat of loss of employment and sales by local suppliers as a result of potential displacement by way of imports. To address this concern, financial and non-financial support is provided to new and existing enterprises which can benefit from capacity development as well as improved market access by integrating into Massmart’s supply chain. The analysis involved assessing the performance of the SDF to date in terms of number of enterprises supported, value of disbursement and procurement and jobs created. It is found that the SDF has facilitated the entry and expansion of SMMEs in the agriculture and manufacturing sectors. It has also positively contributed to job creation and local procurement. It is concluded that the Fund has contributed to the achievement of both competition and industrial policy objectives, as contained in the public interest provisions of the Competition Act.