Walmart’s 7-Year Gamble In Africa Slowly Paying Off

It’s been seven years since Walmart plunked down $2.4 billion for a 51% stake in Massmart Holdings Limited, the second largest retail holding company in South Africa.

Doug McMillon, CEO of Walmart International at the time, said the retail giant planned to accelerate its presence with an expansion into South Africa and surrounding countries because of the attractive growth potential.

“This combination fits perfectly with our strategy to enter high growth markets in which we can apply our global expertise and generate strong returns,” McMillon said in November 2010. “Also, this acquisition will allow us to bring to South Africa our significant experience in connecting small farmers with Walmart’s global supply chain, boosting farmer income as well as helping them improve the quality of their produce. We hope to help South African suppliers grow their businesses, become more efficient, environmentally friendly and ultimately more competitive.”     MORE

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