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Shoprite Shut Down Nigerian Business Unit Amid Dwindling Revenue, Currency Devaluation

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Shoprite Closes Nigerian Business Unit Amid Dwindling Revenue

Shoprite, South African retail giant, on Monday announced it has commenced a formal process of shutting down its Nigerian business operations.

Shoprite Holdings Limited disclosed this in its operational and voluntary trading update released for the year ended June 28, 2020.

According to the company, the board decided to initiate a formal process to discontinue Nigerian operations or sell a major stake in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited, following approaches from investors interested in the Nigerian business unit.

“Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited. As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time,” Shoprite stated.

However, a look into the company’s financial statement showed the Nigerian business unit posted 5.9 percent decline in sales for the first half of the year ended December 2019 while sales of the unit declined by 6.7 percent in the second half of the year ended June 2020 to bring its total decline for the year to 6.3 percent.

While the South Africa business unit returned 9.8 percent growth in the first half of the same year and another 7.5 percent in the second half of the year to hit 8.7 percent year-on-year.

Other non-South Africa business units returned combined -1.4 percent year-on-year growth, compared to Nigeria’s -6.3 percent. Also, currency devaluation weighed on the profitability of the Nigerian unit. For instance, Nigerian Naira depreciated by 12.3 percent during the period while Zambia Kwacha appreciated bu 15.7 percent, Mozambique metical grew by 3.8 percent and Angola Kwanza depreciated by just 1.2 percent.

See the complete statement from Shoprite Holdings.

While investors might have approached Shoprite for Nigerian operations, lack of profitability amid falling revenue sales and challenging business environment compared to other operating Africa’s nations led to the decision to formally pulled out of Africa’s largest economy, Nigeria.

 

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Business

Ellah Lakes Partner Ondo State Government to Develop Oil Palm, Cassava in the State

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The management of Ellah Lakes Plc said it has partnered with Ondo State Government to develop and manage 5000 hectares of land for the purpose of cultivating oil palm and cassava in Ondo State, Nigeria.

The company stated in a statement signed by Kenechi Ezezika, Company Secretary, Ellah Lakes Plc.

Speaking on the development, the Chief Executive Officer, Chuka Mordi said: “This is a significant landmark for the Company in the development of our landbank, & we are very excited to be working with ODSG.

I am delighted that we are fulfilling our strategic objective of progressively expanding our land bank & diversifying our portfolio and production base. I am also glad to say that the intercropping programme in Edo State is progressing steadily & we have achieved our first milestone of 100Hectares of Cassava with the participation of personnel of the Agricultural Development Program (ADP), in Edo State”.

The Special Adviser on Development & Investment to the Ondo State Governor/ Chief Executive Officer of Ondo State Development and Investment Promotion Agency (ONDIPA), Mr. Akinboye Oyewumi, who also spoke on the development said: “We are pleased with this collaboration with Ellah Lakes Plc., and we look forward to a mutually beneficial, valuable and fruitful venture.”

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Unilever Nigeria Appoints Mr Jaime Aguilera as a Non-Executive Director

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Unilever Nigeria Plc announced it has appointed Mr. Jaime Aguilera as a Non-Executive Director of the company effective from January 2021.

The company stated in a statement filed with the Nigerian Stock Exchange.

Mr Jaime Aguilera worked with Coca-cola, Nestle and Procter & Gamble before joining Unilever as Executive Vice President Unilever Eastern Europe in September 2016.

Therefore, his experience spans from Europe, Americas and Asia.

His key expertise areas are “in Sales & Marketing and he has lead teams in Spain, Brazil, South Eastern Europe, Middle East, Mexico and Global teams.

“In 2009, he joined Unilever Spain as EVP & Chairman and then moved to his current role as Unilever Executive Vice President Africa, leading the Unilever business in Africa. Jaime is of Spanish origin and is an alumnus of the Universidad Pontificia de Comillas- ICADE. Jaime majored in Economic Sciences, Management & Business Administration.”

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MTN Nigeria, Gameloft Partner to Increase Access to Variety of Exciting Games

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MTN Nigeria announced it has partnered with Gameloft, a leader in the development and publishing of games, to increase access to a variety of fun and exciting games online.

The telecommunications giant in collaboration with its new partner, Gameloft announced the launch of MTN Gameworld, a new gaming platform for its subscribers.

According to MTN, the new platform will allow the Nigerian growing gaming community access to a lot of unique games online through an extensive premium catalogue from Gameloft and other renowned publishers.

Commenting on the partnership, Srinivas Rao, the Chief Digital Officer, MTN Nigeria, said, “We are constantly seeking to deliver innovative products that support the aspirations of our customers, whilst delivering superior user experience. This partnership allows us to provide our customers with access to a variety of exhilarating games from Gameloft and other leading publishers at an affordable rate.”

MTN Gameworld will allow subscribed customers access to a variety of games, which they can play at subsidised data rates through the MTN Gameworld app. Android, iOS and Windows phone users can subscribe via SMS, app, web, USSD menu (*447#), 131 USSD menu and any other MTN customer channel.

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