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Deputy President Kgalema Motlanthe says that government is happy that giant US retailer Wal-Mart has chosen SA as an investment destination and that it had made a very comprehensive investment.
Answering a question in the National Assembly on Wednesday, Motlanthe said: “The point is that they have gone through everything. They have done a very thorough assessment, they have been through the Competition Tribunal and they were given the thumbs up. What they (Wal-Mart) are saying is that all investors must come to SA. We agree (with Wal-Mart) and are very happy that this is what they have done.”
The question posed to Motlanthe was from Congress of the People MP Juli Kilian who asked about the decline in foreign direct investment to the country that had fallen 70% from 2009 to 2010 and that Angola had consumed 20% of all foreign investment into Africa.
Kilian also pointed out that findings by the University of Johannesburg stated that SA as a country now ranked 128th in in the world as an investment destination. Other countries that were similar to SA such as Chile and Indonesia ranked 19th and 20th.
She also asked if Motlanthe agreed that sustainable jobs should be created for the poor.
Motlanthe agreed with the second part of Kilian's question, but when addressing the FDI issue he pulled out Wal-Mart's investment.
He praised Wal-Mart for their investment and for the fact that they had done a country assessment.
“This means that no other American company needs to do such an assessment,” he said.
The deputy president made no mention that three cabinet ministers had instituted a court action to have stronger conditions set for the R16.5 billion merger of Wal-Mart with local retailer Massamart.
Minister of Economic Development Ebrahim Patel, Minister of Trade & Industry Rob Davies, and Minister of Agriculture, Fisheries and Forestry Tina Joemat-Pettersson's joint application to the Competition Appeals Court was also in support of a trade union's demands to have the approval reversed.
In their court application the three ministers have claimed that Wal-Mart's entry would lead to a loss of manufacturing capability and would threaten food security.
The Competition Appeals Court heard the case last month and is still to make a ruling. - I-Net Bridge
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Anonymous, wrote
MABOWE - you say Cosatu will not be happy with Walmart coming to SA. So???? From many of their comments they are not that bright!! We NEED foreign investment - has that ever dawned on them? With the right conditions attached the arrival of Walmart can only be good for SA!! No wonder Margaret Thatcher got rid of trade unions in the UK!!
Margaret, wrote
Contrary to what some people think,I feel it's a compliment to SA that Walmart have chosen to invest here.We chase investors away by assuming they are ignorant,and have no idea of what is needed here.I think Walmart have been VERY thorough. They are bringing money INTO the country. At least let's give them a chance to spend it cleverly and appropriately,for the good of ALL. I think there will be MORE jobs.
Anonymous, wrote
Jannie, we should be more worried about Walmart's track record in other developing economies with poor employment practices and mostly imported goods hurting the local manufacturing industries. Not all foreign investment is good, look at the mining sector also where the lack of beneficiation actually hurts the SA economy. The raw material is mined here and sent overseas for processing and returns as a highly prices finished product. A balanced approach is needed, the first question should be - does it help or harm SA in the long term ?
Kevin, wrote
The Deputy is dead right. But why then is he not berating the three idiots in government that are appealing this merger? Minister of Economic Development Ebrahim Patel, Minister of Trade & Industry Rob Davies, and Minister of Agriculture, Fisheries and Forestry Tina Joemat-Pettersson, go and speak with Deputy President Kgalema Motlanthe and sort out what this government actually wants for this country. Foreign investment falls 70% and South Africa ranked 128th in the world and these three idiots are behaving in this manner. Zuma, time for a reshuffle here me thinks.
Mabowe, wrote
Robo, wrote
Doesnt anybody in the Govt have an inkling of what economics is about?? Let then give one example of where nationalisation has worked?? Yet there are many examples of where its failed!! One pathetic example!Grow up man
jannie, wrote
Off course happy. The winner here are the consumers!! nothing better than some good opposition to the big boys who had all their own way up to now!!!
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