US Retailer Walmart in Ethiopia : Negotiation Underway

by yeEthiopiaforums

Washington, DC. – Walmart, the US multinational retailer corporation that runs chains of large discount department stores and warehouse stores, and the Ethiopian government are conducting negotiating on the question of the former entering the Ethiopian market, it was learnt. According to sources, an Ethiopian delegation was in Washington DC last week to discuss the matter with officials of Walmart.

The negotiations started while Walmart got the go-ahead with its 2.2 billion dollars purchase of a controlling share in a South African chain, Massmart, earlier this month.

The move to invite Walmart came as a result of last year’s squabble between the government and local wholesalers and retailers following unprecedented commodity prices’ surge in the market.At the time the government blamed the wholesalers for artificially creating a price hike and took the populist yet controversial price cap measure.

Furthermore, the government issued a three-stage ultimatum of which one is inviting foreign companies into the market. After the lifting of the cap, the government undertook a measure to directly intervene in the market. However, the third option, which is inviting foreign companies, was considered by many to be highly unlikely and would not materialize.

Source: The Ethiopian Reporter

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Wodaj April 23, 2012 - 8:05 am

I think it will be a historic achievement for Ethiopia, if government succeeds in bringing Wal-Mart retail stores to Addis Ababa. Ethiopian consumers are tired of unwarranted price increment by the local retailers and getting cheated. We are tired of high price and poor quality items. We need to open some markets to international completion. How long we stay closed to internal market realities in everything? We need serious competitors like Wal-Mart who can push few local wholesalers and trailers who form cartels.

Biniam April 25, 2012 - 8:21 am

It is a real great achievement if it come to be true! But do you think the business people of Ethiopia, those who are smart in deceiving, will keep silent? What kind of weapons can they use to sabotage this effort? They have a lot of ways to sabotage it. I suggest the gov’t must be smart.

Bisrat May 12, 2012 - 5:50 pm

This is really fantastic !!!

the agreement insures how Ethiopia is promising , stable and economically growing country that attracts giant and internationally known businesses. Also, from this agreement unfair traders ( retailers) should learn many things like what fair trade mean?

God Bless The Ethiopian Government and Walmart owners !!!

Abe Gubegnaw June 11, 2012 - 9:17 pm

Please we the consumers’ need this the sooner, please get in the sooner we have more than 90 million population robbed by the local traders.


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