South African retail group Shoprite plans to invest $571.7 million (€537 million) in Angola to increase its store network in the country.
Angola is already one of Shoprite’s main international markets, with 53 stores.
According to Portuguese news agency Lusa, the project involves the opening, over the next five years, of 15 shopping malls, 22 supermarkets (three of which are already in operation since 2015), a storage unit, as well as the overhaul of four supermarkets. The expansion will cover 11 of the country's 18 provinces.
Shoprite has said that the investments will be beneficial to Angola, contributing to a decrease in imports, while stimulating domestic production, agriculture, livestock and local fisheries.
Reuters has reported that Shoprite is considering investing in other developing countries, including in Eastern Europe and in South America.
According to CEO Pieter Engelbrecht, who spoke with Reuters, the company wants to enter markets in Eastern Europe that either "have low competition or high economic growth".
He added that a trip to the region is planned, although he did not say which countries he was considering. He told Reuters the plan was to set up a couple of stores and, in case of a positive response, the company would look at mergers or acquisitions.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine