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Shoprite is pulling out of Nigeria & is launching a formal process to sell their stake
SA listed companies have found it challenging to do business in Nigeria. MTN, Tiger Brands & now Shoprite
Sharp reminder the sheer arrogance of thinking Africa is "all the same" will burn you
SA listed companies have found it challenging to do business in Nigeria. MTN, Tiger Brands & now Shoprite
Sharp reminder the sheer arrogance of thinking Africa is "all the same" will burn you
Having advised on cross border African M&A deals, there's very little emphasis at a senior exec level to really understand local cultures, consumer preferences & ways of doing business.
It's never as simple as just setting up shop & expecting profits to roll in.
It's never as simple as just setting up shop & expecting profits to roll in.
Many people, especially global multi-nationals, completely underestimate how large & efficient the informal retail trade is.
These businesses operate through word of mouth, relationships, verbal contracts & timing. There's no sophisticated inventory management system - it works.
These businesses operate through word of mouth, relationships, verbal contracts & timing. There's no sophisticated inventory management system - it works.
A few years ago I was in a basement warehouse in Dar es Salaam in 40 degree heat watching informal traders shout product prices in Swahili as they were leaving & dynamically pricing items.
It's a fucking machine.
Western business don't understand it. There's no SAP/ ERP systems
It's a fucking machine.
Western business don't understand it. There's no SAP/ ERP systems
Here's the link to the SENS announcement from this morning https://www.moneyweb.co.za/mny_sens/shoprite-holdings-limited-operational-and-voluntary-trading-update-52-weeks-ended-28-june-2020/
If you operate in another country - you operate within the country's regulations.
Exchange control is a massive issue for corporates. Hedging out & repatriation/ getting money out isn't easy at all.
Sometimes you're funding in ZAR, earning in local currency & reporting in USD.
Exchange control is a massive issue for corporates. Hedging out & repatriation/ getting money out isn't easy at all.
Sometimes you're funding in ZAR, earning in local currency & reporting in USD.
