Wal-mart bids for South Africa footprint
Wal-mart is the worlds largest conglomerate employing over 2 million people with an eye on South Africa’s Massmart stores to grow it’s expansion into Africa and developing economies.
Wal-Mart would become the first major international retailer to enter South Africa, but others could soon follow by targeting one of Massmart’s local competitors, Roberts said.
A significant investment in the South African economy is a clear indication that business confidence is on the up in South Africa. Immediately after the rumors were confirmed the gold price firmed to around the $1300/ounce level. Interestingly, the bid from Wal-mart comes at a time when the ZAR/$ exchange rate is at a premium for foreign investors. The Rand has been hovering around the R7.00 to the Dollar for a few days now, levels previously only seen some 2 1/2 years ago. At the time of writing the R/$ is at R7.01/$ and the Gold price is sitting at $1299.75/ounce, with $1300 being an important psychological level.
I have been fortunate enough to have spent the bulk of my life in South Africa apart from a short stint in San Diego back in 1994 (Yes I was one who very seriously considered moving to the USA when Nelson Mandela was released) and have experienced the best and the worst of South Africa but can say that I am extremely glad that I decided to stay.