Designing Supply Chains into Africa: A South African Retailer’s Experience

The key to understanding how to promote growth in Africa is being able to comprehend supply chain management. South Africa has been a leader in terms of expanding its retail businesses throughout the rest of Africa. One of the most successful firms that has managed to do this has been Game stores (owned by Massmart Holdings—now part of Walmart). The supply chain issues which face firms wanting to spread out across this continent are illustrated by describing the experience of this firm’s expansion into Africa. This paper uses an exploratory approach. Based on an in-depth case study of Game stores, insights are gained into how firms, particularly in the retail sector, can expand their supply chains throughout Africa. The case study sheds light on the challenges that the external environment creates for such firms. Much supply chain theory is focussed on firm level factors and this study highlights the need for new supply chain theories to take account of the external environment in order to be practically relevant to emerging markets in Africa. We discuss the supply chain management challenges faced by firms in Africa, especially with regard to infrastructure, legal institutions and regulatory processes. We describe the experience of a South African retailer (Game Stores) who have expanded their operations throughout Africa. We highlight the need to develop supply chain theory further in order to become more relevant in emerging markets. Finally, we discuss the implications for firms intending to design supply chains in Africa.