MAUDE MODISE: Shoprite and the realities of growth in a stagnant economy

Big business is not the enemy, it is the engine of inclusive growth and job creation that SA cannot afford to undermine.  Picture: BUSINESS DAY/FREDDY MAVUNDA
Big business is not the enemy, it is the engine of inclusive growth and job creation that SA cannot afford to undermine. Picture: BUSINESS DAY/FREDDY MAVUNDA

Everybody knows SA is trapped in a stagnant economy. SA’s GDP growth for the second quarter of 2025 was just 0.8%. It gets worse if you consider that the annual GDP growth rate is a full percentage point below our population growth. We’re not keeping up.

In this climate of economic stress, we should listen to the voices of activists who remind us of our country's inequality. They are a reminder of the crisis we face and the hardships too many of our fellow citizens face.

But when SA’s private sector responds to these voices by saying we share the same end goals as the advocates for equality, betterment and opportunity we are met with scepticism in some quarters.

In an increasingly polarised landscape, it is easy to cast big business as the villain. But we should not let oversimplified arguments blind us to this truth: the fastest way for SA to improve the lives of its people is through sustained and inclusive economic growth.

Shoprite’s role in driving job creation

The Shoprite Group is serious about growth. How many other local companies can say they created more than 8,700 jobs in the past financial year? What other business in our industry expects to create up to 10,000 more jobs in the next year?  

Shoprite has always been open and honest about its role within our economy. When we were one of only 15 companies on the JSE Top 40 to transparently disclose our entry-level worker salaries we were targeted by a range of activists, including seemingly foreign-funded lobbyists.

They are, of course, entitled to express these views, but it would be useful if they were more aware of the hard realities of creating jobs and running a large organisation in a complex country like SA.

Wages, opportunity and career growth

Shoprite itself has to contend with the difficult realities of SA. We strive to find the right wage balance to keep growth and opportunity going. Still, our entry-level employees earn 11% above the nationally regulated minimum wage. Often these jobs are talked about as if they are a static and majority block of our employees. This is deceptive.

Entry-level jobs serve as a gateway to long-term career growth. For many workers, especially young adults, minimum wage positions offer more than just a pay cheque — they provide structure, skill-building and exposure to professional environments.

As SA’s largest private sector employer we are a nationwide embodiment of the principle of equal opportunity. Workers who start at entry level can climb the ranks. This past year alone more than 18,000 internal promotions took place.

Investing in skills and sharing in success

Critics argue that minimum-wage jobs trap workers in low-income cycles, but the reality tells a different story, at least in our stores. When paired with training, mentorship and performance-based promotion, these roles are launch pads — we see it almost every day in our group, with staff moving from entry-level to managerial and other corporate roles.

In the past year we have invested R780m in skills training and development for our people. Through our Shoprite Employee Trust, our employees also benefit from the group’s performance. Permanent employees with two years or more of service receive distribution payments every six months, in line with dividend payments. By October 1 this year this had surpassed the R1bn mark in payouts. These are the types of figures many activists ignore.

Supporting local suppliers and communities

What is sometimes also ignored is the wider economic contribution of the Shoprite Group to the SA economy. Our large footprint and subsidised R5 meals and toiletries play a critical role in stabilising food prices and ensuring access to affordable goods. “Developing local” is a core value, and just one example of how we support local suppliers is the procurement of R18.3bn of goods from companies that are owned by black women. Big investments made in infrastructure and innovation — which will benefit future generations — are also often overlooked.

I point to these selected figures not as a typical old litany of “corporate social investment”. I offer it because SA’s private sector, for all its flaws, remains the most effective mechanism for generating employment and investment. Justifiable concern about SA’s current economic trajectory can, however, lead to misdirected attacks that undermine the very engines of growth that are essential for job creation and social mobility.

When big business oversteps the mark it should be called out. We share that principle with social activists. Shoprite always welcomes constructive engagement, but the demonisation of business will not help achieve what we all want — a prosperous country that works for the betterment of all who live in it. 

• Modise is enterprise and government relations executive at Shoprite Group.

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