Carrefour franchisee on prowl for acquisitions to grow in Africa

Majid Al Futtaim Holding, an operator of French retailer Carrefour SA outlets, plans to boost its presence in Kenya as it looks to expand into eastern and southern Africa.

Growing the franchise in Africa will boost competition for the likes of Shoprite, the continent’s biggest grocer, and Walmart's Massmart Holdings.

Those companies are looking to develop outside their home markets in South Africa, where stagnant economic growth is curbing consumer spending.

The Dubai-based company plans to enter as many as five markets in the next four years, country manager Franck Moreau said in an interview.

South Africa, which has the continent’s most developed retail market, is among the 12 African countries where the company may consider buying an existing entity, he said.

"We have already visited South Africa," Moreau said Monday in the Kenyan capital, Nairobi. "If we enter there, it will not be by creation, it might be by acquisition."

'Different Options'

MAF, as the company is known, plans to add two more stores in Kenya by the end of the year and expects to open in at least one new market in East Africa in that period, he said.

"We are open to all different options," Moreau said. "If we have some information that some owner or group wants to sell, we are not closed, we will study it."

MAF operates in 15 countries. It entered Kenya in 2016 and has since grown the number of Carrefour stores it operates to seven, at a time when rivals including closely held Nakumatt Holdings and Uchumi Supermarkets have been forced to close outlets to cut debt.

The company also sees opportunity for its partnership with online retailer Jumia Technologies AG, which MAF is using to offer express deliveries in Kenya, Moreau said.

ZAR/USD
16.93
(+0.72)
ZAR/GBP
21.57
(+0.88)
ZAR/EUR
19.76
(+0.98)
ZAR/AUD
11.93
(+1.38)
ZAR/JPY
0.16
(+1.17)
Gold
1867.94
(+0.71)
Silver
23.17
(+5.69)
Platinum
848.00
(+1.91)
Brent Crude
41.98
(+0.17)
Palladium
2221.71
(+0.92)
All Share
54247.81
(+1.84)
Top 40
50127.05
(+2.04)
Financial 15
9588.13
(+0.19)
Industrial 25
74229.70
(+3.26)
Resource 10
53508.98
(+1.08)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1359 votes
It depends on how the funds are used.
73% - 8816 votes
No. We should have gotten the loan elsewhere.
16% - 1947 votes
Vote