3 February 2016
Participation is central to sustainable growth and thus to the debates on inclusive growth. This entails not only participation in terms of welfare and employment, which are important in their own right, but also access to markets and entry in terms of individuals and firms being able to share in the process of growth. The high levels of concentration in the South African economy suggest that entry barriers are significant but their magnitude and how they can be reduced is poorly understood. This impacts on the efficacy of regulatory and policy interventions as an understanding of the nature and extent of barriers to entry is crucial for designing programmes that have a meaningful impact on creating inclusive and shared growth.
Using the experience of successful entrants, Fruit and Veg City and Choppies, the workshop unpacks the typical challenges faced in entering the supermarket industry. These include the inherent characteristics of supermarkets which result in structural barriers to entry, as well as the strategic conduct of large supermarket chains such as entering into exclusive leases with property developers which results in the exclusion of new entrants from shopping centres. The presentation will also reflect on government programmes that have supported the emergence of suppliers to the supermarkets to draw lessons for programme design.
Join CCRED in partnership with National Treasury for reflections on the results of the study and implications on policy.
Download paper here.
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