This TIPS Development Dialogue Colloquium was held in Pretoria on 24 October 2017. For more information and copies of the presentations go to Development Dialogue. 

AGENDA

Chairperson: Nitin Gunga (the dti)

9:00 - 9:15 Opening and Welcome: Eustace Mashimbye (CEO: Proudly South African)

9:15 - 11:30 Presentation and discussion of research findings

Retail and manufacturing: Andrew Mukandila (the dti)
Supplier development in the retail sector:  Dave Kaplan (UCT and TIPS Research Associate)

Tea break

Adverse Inclusion: Tracy Ledger (TIPS Research Associate)
The spread of supermarkets in the SADC region: Impact on competition and on suppliers: Reena das Nair (CCRED)

Chairperson: Saul Levin (TIPS)

11:30 - 12:30 Panel Discussion: Does South Africa need a retail sector charter or a code of good practice?

• Mike Morris
• Reena das Nair
• Tracy Ledger

Lunch: 12:30

BACKGROUND

Large general grocery retailers and supermarkets have greatly increased their market coverage in South Africa both spatially and in customer numbers over the past 20 years. Estimates are that they now control some 90% of all formal food sales, and more than 60% of total retail food sales. South African-owned supermarket chains have also grown exponentially in the rest of SADC.

Supermarkets are increasingly the gatekeepers between suppliers and end-use customers. They are often the only, or the most important, way in which suppliers, particularly smaller suppliers, can access customers. As more and more consumers purchase most or all of their food from supermarkets, so the supermarkets' power in the chain relative to other participants increases. The procurement practices of supermarkets therefore have a bearing on both small and large businesses, and can contribute or negatively impact on industrialisation efforts.

The colloquium will share research undertaken on the impact of supermarkets, their linkages to the manufacturing sector and supplier development as well as exploring the pros and cons of a code of conduct for the retail sector.

This edition of The Real Economy Bulletin reviews the state of small business in South Africa and its evolution over the past decade. It also looks at proposals around the definition of small business and regulatory obstacles and burdens arising from national legislation. To download a copy go The state of small business in South Africa.

Business Day - 12 September 2017 by Neva Makgetla (TIPS Senior Economist)

Read online at Business Day

Or read here as a PDF

RESPONSE TO COLUMN

Letter in Business Day - 3 August 2017: Solution to rural woes Hot money not to blame

Read online at Business Day

Business Day - 29 August 2017 by Neva Makgetla (TIPS Senior Economist)

Read online at Business Day

Or read here as a PDF

Engineering News - 4 August by Saliem Fakir.

Read online at Engineering News.

Engineering News - 3 July by Terence Creamer.

Read online at Engineering Newsonline at Engineering News.

Engineering News - 21 June by Terence Creamer.

Read online at Engineering News.

Mail & Guardian - 15 June by Lynley Donnelly.

Read online at Mail & Guardian.

Small business is often seen as a key potential driver of job creation, equality and innovation in South Africa. The National Development Plan argues that small business can open new opportunities to create jobs as well as be a route to economic empowerment. In manufacturing, small business accounts for only a tenth of revenue, but a fifth of employment. Small business provides 55% of formal employment and the available evidence shows virtually no increase in the number of small businesses since 2008, and only relatively slow employment growth. South Africa continues to have low levels of small business compared to other middle-income economies.

This Special Edition of The Real Economy Bulletin first reviews the state of small business in South Africa and its evolution over the past decade. It then summarises the findings from two TIPS studies into policy related to small business: proposals around the definition of small business, which in turn affects who benefits from state support; and a review of regulatory obstacles and burdens that arise from national legislation. 

Read online: The State of Small Business in South Africa

Or download a copy.