South African Retailer Seeks Sh571 Million Loan From Kenyan Bank As It Seeks To Expand Locally
While the retail business in Kenya remains unpredictable for new entrants following the financial meltdown of the once-vibrant players which cast a huge doubt on the scene, this South African retail chain is determined to take up the retail sector.
South African retailer, Shoprite Holdings has embarked on an expansion drive and in a new move, it has borrowed Kshs 571 million from Stanbic Bank Kenya as it plans to continue establishing its footprints locally.
In the latest update released for the financial year ended June 2019, the firm said that “We are critically assessing capital spend in the pursuit of growth that is cash generative, return accretive and strategically beneficial,”
In the previous financial year, the firm opened 126 additional stores in the region, the new loan is an addition to the Sh79 billion debt it closed the year with.
Without disclosing the exact cost, the bank’s General manager for Shoprite Kenya Andrew Mweemba told the Business Daily that the firm is planning to open new stores in Kenya, “one opening in Nyali mall next week and another in Waterfront Karen next month,”
Last year, the firm had announced plans to open seven prime shopping malls, previously owned by the struggling Nakumatt Limited.
So far, the retail chain has two operating stores, it opened its first store at the Westgate Mall in Nairobi in December 2018, two months later it opened the second branch at the Garden City Mall in Nairobi.
It is leveraging on Kenya to establish itself in East Africa which has a weak presence unlike its counterparts in Central, Southern, and West Africa.
Featured Image Courtesy: Quartz.com