\n The move follows the Competition Commission\u2019s initial report released on Friday in Johannesburg on the financial state of these regions, which showed that local businesses confront a variety of challenges that hinder their capacity to expand and compete.
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\n The areas \u201care characterized by significant market and regulatory barriers,\u201d the authority said.
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\n This calls for \u201cfollow-up work on the implementation of the recommendations of previous market inquiries,\u201d it added.
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\n The watchdog said it will investigate whether certain landlords and large merchants engage in business practices that keep smaller firms out of shopping malls, as seen on Bloomberg<\/a>.
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\n This includes contracts that grant giant grocery chains or other significant tenants exclusive rights, prohibiting rival independent merchants from obtaining space.
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\n The board had previously raised concerns regarding such arrangements during its 2019 grocery retail market investigation.
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\n Townships and rural villages continue to rank among the most economically disadvantaged regions in South Africa, notwithstanding their increasing significance to multinational corporations seeking new consumer markets.
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\n These regions accommodate approximately 40% of the national population.
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\n According to data given by the Public Investment Corp and 27four Investment Managers, the township economy alone generates around 900 billion rand ($56 billion) annually.
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\n However, many local firms are still struggling to transition from informal to official commercial facilities.
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\n The panel discovered that more than half of the independent and informal firms assessed had not sought to transfer to official premises. Nonetheless, many stated they would consider doing so.
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\n High rental expenses were one of the most significant barriers for people who had experienced problems.
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\n The Competition Commission also identified other practices that may harm smaller firms, such as discriminatory purchase restrictions and supply agreements that favor larger corporations over small and medium-sized businesses.
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