Choppies invests $21m in Zim

Oliver Kazunga Senior Business Reporter—
BOTSWANA Stock Exchange-listed retail chain Choppies has invested about $21 million in the past four months in Zimbabwe as it forges ahead with plans to expand its operations outside Bulawayo. The company’s senior executives led by group executive chairman and former Botswana President Festus Mogae, Ambassador Phekezela Mphoko who is executive chairman Zimbabwe and other board members were in the country yesterday.

In an interview after a closed-door board meeting in Bulawayo, Choppies Botswana chief executive officer Ranmachandra Ottappath said their meeting was to discuss how they could strategise to expand their local operations to other parts of the country.

“The board meeting that we held today was our regular board meeting to discuss normal business operations and how we will continue expanding our operations. Within the next quarter, we are looking forward to expanding the local business to other parts of the country such as Harare, Kwekwe, Gweru and Chitungwiza,” he said.
He said Choppies was predominantly into retail business.

“For the past four months we’ve spent around $21 million and in the next two years we will be building a distribution centre in Bulawayo because that is where we are headquartered,” said Ottappath.

He added that Choppies was leasing a distribution centre in Belmont owned by Advance Wholesalers.  The retail chain employs more than 1,000 people.
“We are looking forward to creating additional 400 jobs as we expand,” he said.

Asked about the prospects of the retail sector in Zimbabwe, Ambassador Mphoko, who retired recently as Zimbabwe’s top envoy to South Africa, said the environment was satisfactory.

“The prospects for the retail sector in the country are satisfactory and this is why we are planning to expand our operations to other parts of the country,” he said.
After the board meeting, Choppies officials also toured some of their retail outlets including Bellevue Choppies and others in the city centre.

The Botswana business delegation, which touched down in the morning at the Joshua Mqabuko Nkomo International Airport in Bulawayo on board a private jet, flew back home in the afternoon.

In a statement accompanying half year results to December 31, Choppies said it planned to open more outlets in Zimbabwe this year to add to the current 13 already in operation.

In the six months to December, revenues rose 25 percent and gross profit by 31 percent.
The company started its operations in Zimbabwe with 11 stores last October before adding two more in December and in January.

Its Zimbabwe operations’ current retail space covers 15,124 square metres. As part of its expansion drive, the group expects to open more stores in South Africa, Zimbabwe and Botswana.