Shoprite When danger reared its ugly head, he bravely turned his tail and fled
Tanzania, let’s face it, has never been a piece of cake, but it still surprises us to learn that Shoprite is selling its stores there (one in Arusha, two in Dar es Salaam) to Nakumatt Holdings for around R26million. Nakumatt, you will recall, has 45 stores in East Africa, including Rwanda and Uganda, but has pretensions on markets as far flung as Burundi, Zambia, South Sudan (where plans have been understandably suspended at the mo), DRC, Nigeria, Botswana and Malawi, flogging groceries to an emerging middle class with increased spending power. Nakumatt was hit by significant losses in the Nairobi mall attacks, but has been handsomely paid out by insurance, and is expecting significant foreign investment in the next few months to fuel its expansion drive.
Comment: For Shoprite to be bailing, Tanzania must indeed be as challenging as its reputation suggests.