According to a recent report, Africa is considered to lead global economic growth in the conceivable future. it is the home of almost two billion people with rising household spending and growth in foreign direct investment. The continent is rich in natural resources with a majority young productive population, the potential is huge. it is also the fastest-growing region in the world and projected to grow by more than 4.8 % of its GDP. This growth includes demand in the domestic market due to the rise of the middle-class population.
With these statistics in mind, why is it that international companies with good prospects exit from the African market? Recently a report suggested that 34 stores under the Massmart holdings in South Africa intend to close due to salary increase and other related issues. What can be done to help them remain operational and stay profitable as a going concern? What is the role of government and trade institutions including the labour unions in assisting businesses do well and employees secure their jobs?
There are huge potentials in other African markets and opportunities for international traders like Massmart to tap the potentials of emerging consumer-based economies on the continent. International brands should be encouraged to do well not only for their customers but also for economic growth and prosperity.
The Parent company of Massmart holdings is Walmart International and they confirmed their commitment to all existing operations in sub-Saharan Africa.
Abiodun Abidoye
Publisher@africaonlinenews.blog Member Southern African Freelancers Association.
