Business
Nakumatt: The growth of an African retail chain
Nakumatt then aims to turn its sights to the rest of the continent, going head-to-head with South African retailers who dominate the southern part of the continent and are opening stories in West Africa.
“We are looking at how we can take this brand to the west, to the south and north. Of course once we get onto Ethiopia there is nothing stopping us going all the way,” he said.
Suitors
At least 10 parties were interested in a 25 percent stake that Nakumatt is selling to fund expansion, Shah said, illustrating the potential of a sector with annual growth of 15-20 percent even before accounting for any takeovers.
“Everybody is talking about Africa, especially east Africa, which is growing faster than any other region,” he said.
The interested parties include larger foreign chains and private equity firms. “Private equity would be more favorable for us,” he said.
Strong economic growth rates in Africa in recent years have given rise to a new breed of consumers, helping drive up shares in local retailers such as Kenya’s Uchumi, which are up 85 percent this year to date.
