Welcome to Next Africa, a twice-weekly newsletter on where the continent stands now — and where it’s headed. Sign up here to have it delivered to your email.

Fifteen years after Walmart first secured a foothold in Africa, it’s taking another crack at the market by opening stores bearing its own brand.

The world’s biggest retailer initially decided to enter South Africa by buying a majority stake in Massmart, the country’s biggest general-goods wholesaler. After lengthy negotiations, the authorities approved the deal on condition that the firms didn’t cut any jobs for two years and set up a fund to support local suppliers. 

A Walmart store in San Leandro, California. Photographer: David Paul Morris/Bloomberg

Walmart took full control of Massmart, whose chains include Game and Makro, three years ago and has tried to arrest a slump in profit ever since. 

While the American retailer has experience in operating in developing nations and has had success with its branded stores in countries like Mexico and China, its decision to roll them out now in South Africa wasn’t an easy or obvious one. 

The market is intensely competitive, with formidable domestic rivals like Shoprite having gained ground while Massmart has struggled. Online shopping is also growing apace, and the wisdom of opening new client-facing outlets is debatable given that some already consider the country overtraded.

Analysts say Walmart may be looking to test a model in South Africa that it could roll out across the rest of the continent, which has the planet’s fastest-growing population. If that is the case, it will face off against mom-and-pop-style outlets that draw shoppers because they are conveniently located near transport hubs and in sprawling townships. 

In South Africa, Walmart’s success will likely hinge on whether it can lure cost-conscious shoppers by offering decent-quality goods at its famed knock-down prices. 

“I look forward to new variety and being able to get everything in one place, but it will have to be cheaper,” said Takalani Munyai, 28, who lives in Johannesburg and already shops at Makro outlets about once a month. — Janice Kew

Key stories and opinion:
Walmart Puts Its Name on the Line for a Reset in South Africa 
Walmart to Open Shops in South Africa in New Push to Win Locals 
South Africa Has Too Many Retail Stores, Pick n Pay CEO Says 
Africa’s Largest Grocer Expands Food Business, Improves Margins 
Walmart Slumps on Rare Profit Miss, Citing Higher Claims 

Malawian President Lazarus Chakwera faces an uphill battle to secure another term in Tuesday’s elections, with his popularity dented by spiraling living costs and fuel shortages. His main rival is his predecessor Peter Mutharika, whom he beat five years ago in a court-ordered rerun of a vote that was marred by rigging allegations. The annual inflation rate in the southern African nation is running at more than 27%.

Voters cast their ballots in Lilongwe, Malawi’s capital.  Photographer: Amos Gumulira/AFP/Getty Images

Aliko Dangote, Africa’s richest person, has begun trucking fuel from his massive refinery outside Lagos directly to retailers, extending his sprawling empire into one of the Nigerian economy’s most critical sectors. The  distribution plan has angered  truckers. The Nigeria Union of Petroleum and Natural Gas Workers, which represents thousands of workers in oil multinationals and the civil service, said it will strike if the refinery’s newly hired drivers aren’t allowed to unionize.

Diamond-dependent Botswana, which is struggling with a slump in demand for its gems, has been dealt another blow. S&P Global Ratings cut the southern African nation’s long-term sovereign-credit rating by one notch to BBB, the second-lowest investment grade. Botswana remains the highest-rated country in Africa. “Global demand and prices for natural diamonds will likely remain weak and weigh on Botswana’s minerals-dependent economy,” S&P said.

The Jwaneng diamond mine in Botswana. Photographer: Monirul Bhuiyan/AFP/Getty Images

A sustained rise in energy prices in South Africa is threatening to smother an industry that makes a key stainless-steel ingredient. Ferrochrome smelters run by a Glencore venture and Samancor Chrome are grinding to a halt. The energy-hungry furnaces consume about 7% of the electricity produced by state utility Eskom, but rising tariffs after years of mismanagement and corruption are forcing companies to shut the facilities. 

Foreign ministers of the US, Saudi Arabia, the UAE and Egypt released the outline of a plan to end Sudan’s civil war, calling for an immediate three-month ceasefire followed by a permanent one. Conflict erupted in the northeast African nation in April 2023, when government troops and the paramilitary Rapid Support Forces failed to agree to a power-sharing accord. At least 150,000 people may have been killed since then, according to US estimates. 

A Sudanese army officer walks past an armored vehicle seized from the paramilitary Rapid Support Forces. Photographer: Ebrahim Hamid/AFP/Getty Images

The International Monetary Fund agreed to prolong Zambia’s existing program to allow it to conclude a final review and prepare for a potential extension. The 38-month facility was due to expire next month. The copper-rich nation’s government indicated last month that it plans to request a year-long continuation of the program, a move that may secure it $145 million in additional financing. 

Thank you for your responses to our weekly Next Africa Quiz and congratulations to Jacques Nel who was first to identify Malawi as the nation whose president apologized for fuel shortages and accused state oil-company employees of sabotaging his reelection campaign.

Nigeria’s inflation rate decelerated for a fifth straight month in August, opening the door for the central bank to consider cutting borrowing costs next week. The consumer price index slowed to 20.1% from 21.8% in July. After lifting the key interest rate by 16 percentage points since May 2022, the Central Bank of Nigeria has kept it on hold at its past three meetings while it gains clarity on inflation trends.

Thanks for reading. We’ll be back in your inbox with the next edition on Friday. Send any feedback to mcohen21@bloomberg.net