PEOPLES DAILY, THURSDAY, AUGUST 22, 2013
PAGE 21
Business
Shoprite ramps up Africa expansion as home market slows
By Abdulwahab Isa with agency report
S
hoprite, Africa’s biggest grocer, is ramping up its expansion across the continent with 47 new supermarkets as its core South African consumer base grapples with high personal debt levels and growing fuel and transport costs. Nearly half of South Africans failed to pay back their debts for three straight months this year, prompting banks to tighten their lending criteria, while a weaker rand currency fuelled inflation and higher petrol prices. “It’s tough out there,” Shoprite deputy managing director Carel Goosen said at the presentation of the company’s full-year results. Cape Town-based Shoprite, which reported an 11 percent rise in full-year profit that fell slightly short
of market expectations, said it could double its stores outside of South Africa in the next four years. Shoprite has 153 supermarkets in 16 countries outside South Africa. Those foreign outlets registered a 28 percent jump in sales in the 12 months to the end of June, nearly three times the rate of growth in its home market during the same period. The bulk of the new stores would be in oil-rich Nigeria and Angola. The company sees scope for 44 new outlets in Nigeria and 21 in Angola in the next three to four years, Chief Executive Whitey Basson said. After more than two years as an investor favourite, South African retailers are fast falling out favour due to concern that
high personal debt levels and reluctance among banks to lend more will squeeze spending in Africa’s biggest economy. South African retail sales grew by a smaller-than-expected 1.9 percent in June, data from the government statistics office showed last week. Shares in Shoprite, which are down about 20 percent this year, gained 3.3 percent to 166.73 rand in what analysts said was a recovery from oversold levels and optimism that its Africa focus would help it ride a slowdown in consumer spending. “In Shoprite, you have a company that’s still growing profits and paying dividends even in a tough environment and the results were not that far away from the consensus,” said Reuben Bleeders, an analyst at
Cape Town-based Gryphon Asset Management. The stock is trading close to its intrinsic value, according to Thomson Reuters StarMine valuation model, which takes into account the company’s most likely earnings trajectory over the next five years. Shoprite posted an 11 percent rise in headline earnings per share to 675.4 cents in the year to the end of June, a touch below the 681 cents forecast in a Reuters poll of 11 analysts. Headline EPS, South Africa’s primary profit gauge, excludes certain one-time items. Sales rose 12 percent to 92.7 billion rand ($9.11 billion) and the company lifted its annual dividend by the same amount to 338 cents per share. (Reuters)
Custom officers during the launch of Nigeria trade hub portal and the Nigeria import, export and transit process manual, on monday in Abuja. PHOTO: NAN
NIPC advises Thailand to invest in agriculture in Nigeria
By Etuka Sunday
T
he Executive Secretary, Nigerian Investment Promotion Commission (NIPC), Engr. Mustafa Bello, has told the delegation from Thailand who are on a fact finding mission in Nigeria to explore the Investment opportunities in the country especially in the agricultural sector. Engr. Mustafa Bello who hosted delegation led by Ms, Vasana Mututanont, Deputy Secretary General, Office of the Board of Investment, Thailand also told them that the commission was the first point of call for any investors (both Foreign and Local) that want to do business in the country. The NIPC Boss specifically called on Thailand investors known for its agricultural prowess to invest in the sector as the Federal Government has given priority attention to the transformation of the sector from its subsistence
farming to merchandised farming or Agric-business. According to him, the Commission provides all the relevant information on doing business in Nigeria; it offers incentives to encourage investments and have the One Stop Investment Center (OSIC) that facilitate business registration and provide efficient and transparent services to investors. In a statement by NIPC’s Assistant Director/Head, Media & Publicity, Joel Attah, Bello maintained that the Commission through the activities of OSIC, it shortens and simplifies administrative procedures for the issuance of business approvals, permits and licenses and company registration thereby removing all bottlenecks faced by investors in establishing and running business and ultimately reduces the cost of doing business in Nigeria. He emphasised that the
Commission plays advisory role to all potentialand existing investors through its “Pre and After Care Services” and do hand-holding to investors to ensure that they are not defrauded and mitigate against corruption from some unscrupulous Nigerians. The NIPC Chief Executive further disclosed that the Commission has concluded arrangements to establish desks at the various international airports and major Hotels in the country in order to assist investors in providing statistical data and information on the Nigerian economy, nvestment climate, legal and regulatory framework as well as sector and industry specific information to aid existing and prospective investors in making informed business decisions. He said the NIPC enabling law support investors to repatriate their profits and dividends 100 percent and guarantees against
appropriations and also provides incentives that will enable investors to expand their businesses. Earlier, in her remarks Ms, Vasana Mututanont, Deputy Secretary General, Office of the Board of Investment Thailand who led a nine man investment delegation to the Commission described Nigeria as the preferred investment destination in Africa. She stated the willingness of Thai investors to invest in the Nigerian economy giving its size and attractive incentives available. She said the team was in the country on a fact finding mission and to gather relevant information on the investment climate and activities of the various sectors in order to make an informed decisions. She assured that Thailand thrives so much in Agriculture therefore would strive to invest in the sector in Nigeria.
Shippers Council introduces new freight rates on Imports, Export From Dapo Olawuni, Lagos
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n what seems like a direct response to cries from industry stakeholders on the high cost of doing business in Nigeria, the Nigerian Shippers Council in collaboration with the Nigerian Maritime Administration and Safety Agency (NIMASA) has introduced a reviewed benchmarked freight rate for import and export in Nigeria. At a sensitization meeting between the council and shipping companies in Lagos yesterday , the Director of Commercial Shipping Services of the Council, Mrs. Dabney Shal-holmer said that the new rates will ensure that trading in Nigeria becomes cheaper. Making a presentation on the provisions of the reviewed 3% rates that will be collected by NIMASA from shipping lines, Shal-holmer explained that the document has been submitted to the Federal Government and that it is already harmonized in the Nigerian Trade Hub of the Nigerian Custom Service. Explaining the review of the NIMASA 3% levy, she said “There are certain trades that were being over charged and some were being under charged, in our classification we have separated them so that high premium cargoes does not benefit extremely while low premium will suffer” “What we import into the country mainly is not premium cargo, so if you peg it high you are making it difficult for the trader who is importing to even sell and break even” “Market price of product will be grossly affected, so it is not just the trader that ill benefit, it is the Nigerian economy that will benefit” Shal-holmer said. She further explained that there was a trade off between both the council and the NIMASA as the new classification will affect the revenue that should accrue naturally to NIMASA. “The NIMASA 3% collection, shipping company earning are going to be jolted a little, for the time being and a very short period, revenue in NIMASA will certainly drop by a very little percentage but we will be gaining because what it will now mean is that we can trade cheaper, and an economy that trade cheaper is an economy on its way to prosperity” Implementation of the reviewed rates according to her will begin by 1st of October 2013. However, while reacting at the meeting, some of the shipping companies lamented that the rates ought to have been reduced from what it has been since year 2008.