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Retail group Choppies may give its Zimbabwe operations the chop

By our African Marketing Confederation News Team | 2024

Botswana-based supermarket group says it is ‘evaluating’ operations in Zimbabwe, where it has 30 outlets and employs more than 1,000 people.

Choppies, the Botswana-based supermarket group, is said to be considering an exit from the Zimbabwe market due to the instability of the Zimbabwe Gold (ZiG) currency introduced in April to replace the Zimbabwe dollar as the official domestic currency. 

 

According to media reports within the country, the resulting poor performance of the chain’s Zimbabwe operations is putting a strain on the financial performance of the group as a whole. 

 

Nanavac Investments (Pvt) Limited, trading as Choppies Zimbabwe, is wholly owned by the group.

 

Group says it will ‘address the situation’ 

 

“The new ZiG currency, which replaced the Zimbabwean dollar, has not as yet helped to stabilise the economy, and consequently the Zimbabwean operation has experienced a decline in performance. We are evaluating our operations in the country and will address the situation,” the company states in its annual report for the period to 30 June 2024. 

Photo by David Gomes from Pexels

“The long-term focus of our strategy is to reduce debt. We have exited all loss-making areas apart from Zimbabwe, which is something we are currently considering. We are also looking into expansion plans throughout the group,” Ramachandran Ottapathu, the Choppies CEO, said“The economic challenges in Zimbabwe including high inflation, high unemployment levels, and a shortage of foreign currency continued to impact our operations. Due to the continued risk posed to the group, the company is weighing various options in Zimbabwe given the stress on the group’s financials.” 

 

According to NewsDay, the Harare-based daily newspaper, Choppies has 30 stores and employs 1,051 people. 

 

Using the official exchange rate 

 

Comments Trendtype, the London-based emerging markets consultancy: “The issue for supermarket chains in Zimbabwe is that they are forced to use the official exchange rate, unlike informal retailers.  

 

“Supermarket chains also complain that they are also overburdened with regulation, taxes and regulatory fees, all of which also add to the retail selling price of goods. By contrast. informal traders often buy direct from manufacturers in USD, can sell in USD, and many avoid taxes.”

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.