SMME News @smme_news 59 Old Main Road Shakaskraal 20 000 copies distributed free monthly within Ilembe District (Mandeni, Maphumulo, Ndwedwe and KwaDukuza) - Issue No. 8 - 15 September 2016 Tel: 032 946 9017/18 - email@example.com, www.smme-news.co.za BETHENJISWE IRENKI ELIHLELEKILE OSOMATEKISI Page 3 CHALLENGES FACED BY WOMEN IN ADVERTISING Page 4 DR TSHITSHI MBATHA IN SAA NEW BOARD Page 5 YENZA EZIBUKWAYO INTOKAZI YASEMANDENI Page 7 “I am an African” A seasoned attorney of KwaDukuza, Mr Vela Mdletshe (second from left), was shot enjoying the company of his friends during ‘umembeso’ of his fiancee’ which took place at Gledhow station recently. The impact of national supermarket chains on small retailers probed XOLANI NXUMALO ver the past ten years, South Africa’s national grocery retailers have been rolling out new stores in township and rural areas – markets which were historically viewed as undersupplied in terms of retail space. These new shopping malls are found in Umlaza, KwaMashu, Esikhawini, Edendale and many other areas. The recently built shopping malls are at Tugela Ferry- Msinga in uMzinyathi District Municipality and Gingindlovu in King Cetshwayo District Municipality. It is claimed that the growing access to credit and a burgeoning middle-class in townships and rural areas created a fertile ground for national retailers to grow their market share and earnings. Although this is seen as development of the previously disadvantaged areas, but small businesses have been affected negatively. Some are claiming that they were not even given opportunity to buy shares from companies that are moving into these areas. Even some research has shown that small and independent retailers have suffered from high attrition rates. In May 2015 the Minister for Economic Development, Ebrahim Patel in his budget vote stated that he would examine the dynamics of the grocery retail sector and competition among retailers. After this announcement, the Competition Commission identified food, specifically grain and milling; poultry, pelagic fish; vegetable fats and oils; as well as dairy, as priority. This commission is in the process of investigating several food value chains from inputs, storage, processing/ manufacturing and retail. Competition Commission initiated an investigation against Pick ‘n Pay Stores Ltd (“Pick n Pay”), Shoprite Holding Ltd (“Shoprite”), Woolworths Holding Ltd (“Woolworths”), the Spar Group Ltd (“Spar”), Massmart Holding Ltd (“Massmart”) and Metcash Trading Africa (Pty) Ltd (trading as Metro) (“Metcash”), hereinafter collectively referred to as the “Supermarket Chains”. This after allegation that the supermarket chains may have contravened the Competition Act 89 of 1998, as amended (“the Act”). The chairperson of the commission’s panel is Halton Cheadle. Other panellists are Lulama Mtanga and the well known economist Lumkile Mondi. The main reason for this is for this commission to understand if there is anything in this sector that may lessen, prevent or distort competition. The Commission’s inquiry into grocery retail will delve beyond the national supermarkets chain and try to address the supposed root of recurring xenophobic violence – the alleged competitive secrets of foreign shopkeepers. The inquiry is premised on the problem of a disappearing small and informal retail sector in the face of the rise of shopping centres in townships, according to the commission’s background statement in the terms of reference. The minister of small business development, Lindiwe Zulu, this year drew criticism for saying that foreign shop owners “cannot barricade themselves in and not share their practices with local business owners” in the midst of widespread violence. The National Federated Chamber of Commerce and Industries (Nafcoc) has been vocal about this.