Economic analyst says Wal-Mart's plan to buy its way into the South African market is a sign of confidence in the country's growing economy.

Independent economist Mike Schussler says Wal-mart's plan to tap into the South African market is a sign of confidence and will boost Africa's biggest economy.

Walmart offered more than $4 billion for South African wholesaler Massmart on Monday as the world's largest retailer seeks to expand in fast-growing Africa.

It operates in 14 countries and has been among the most aggressive South African outlets in expanding into the rest of sub-Saharan Africa.

[Mike Schussler, Economic Analyst]:
"I think further more it shows other people that there is a lot of confidence in the real economy in South Africa because that is the type of investment that they are making. It's not perhaps yet a green field's investment but it's certainly a meaningful investment into the South Africa economy outside of banking and mining where we have seen most foreign activity in the South African economy.”

Walmart has offered around $4.1 billion U.S. Massmart said it had granted Walmart an exclusivity period, adding there could be no certainty the discussions would lead to a formal offer being made.