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ZIMBABWE Electricity Industry Pension Fund will spend US$14 million on the construction of its warehouse being built along Seke Road in Harare, an official has said.
The ZEIPF general manager Mr Winfrey Lungu told The Herald Business yesterday that the project was now 50 percent done and was earmarked for completion in August this year.
The fund has already entered into a long-term lease agreement with Spar Zimbabwe.
“The warehouse would be for the sole use of Spar Zimbabwe, one of our valued clients that are operating from various locations,” said Mr Winfrey.
“It would enable Spar Zimbabwe to operate under one roof and enabling it to service its clients efficiently and conveniently.
ZEIPF and Spar Zimbabwe have a cordial business relationship, the position that will make the project a huge success,” he added.
Spar Zimbabwe is currently using two warehouses in Graniteside industrial area of Harare and it intends to relocate to the giant facility upon its completion.
Mr Winfrey said the warehouse would not only grow the revenue streams of the Pension Fund but also create employment on its completion.
He said ZESA, through the pension fund is planning to venture in similar projects in the future.
Spar Zimbabwe’s decision to move to the new warehouse comes amid the restructuring of the group, which will see the Distribution Centre, Spar Corporate and Fresh-pro being combined in order to cut overheads and refine structure. The long-term lease with ZEIPF demonstrates Spar Zimbabwe bullish prospects about medium to long-term outlook of the local retail sector as they are revising their business models to enable themselves to retain leadership in their market share.
Spar Zimbabwe falls under Innscor Franchising Limited, which is run by Innscor Africa Limited. Last year the Innscor board resolved to splurge its vast cash holdings towards expansion of the Spar Zimbabwe unit.
In a statement accompanying the group’s financial results last year, group chairman Mr David Morgan said they would continue to critically analyse Innscor’s various business models and processes to improve their performance. The long-term lease with ZESA for the premises under construction speaks volumes of the company’s intention to expand and reclaim its market share in the retail sector.
In Zimbabwe, Spar is made up of 10 corporate stores and 70 independent operators.
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