South Africa: Malls Lock Out Local Traders and Raise Prices, Report Warns

What the report says

A new Competition Commission report on South Africa’s rural and township economy says many residents live on very low incomes and face everyday shopping costs that are shaped by the way malls operate. The report, released on Thursday and carried by Scrolla via AllAfrica, says 53% of people in rural towns, 47% in large townships and 39% in metro townships earn under R3,500 a month. It also notes that many in these communities fall below the poverty line cited in the report.

According to the report, shopping centres often limit opportunities for small local traders through high rental prices and exclusive agreements that tend to benefit large national chains. Deputy Trade and Industry Minister Zuko Godlimpi said this can leave consumers with fewer choices and higher prices. The article also says smaller businesses face additional obstacles, including permits, taxes and weak infrastructure that makes it harder to use online sales platforms.

The report places these findings in the context of apartheid’s long-running economic effects and says communities in rural and township areas still account for a large share of South Africa’s population. It adds that traditional general dealers are disappearing in some areas. The Competition Commission now plans further investigations into shopping centres in Black and rural communities to examine possible unfair practices.