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Shoprite Holdings, Africa’s largest retailer, which is partly owned by South African billionaire Christo Wiese, has successfully secured substantial funding of $64 million (R1.2 billion) from Standard Bank, the continent’s largest lender, to fortify its supply chain infrastructure.
The funding, part of Shoprite’s ongoing expansion initiative, is set to address the anticipated volume and logistics demands for the next decade, especially amidst the current challenging economic situation in South Africa.
Standard Bank’s strategic $64-million funding boosts Shoprite’s logistics and supply chain capacity
Boasting a network of more than 2,900 stores across the African continent, Shoprite has earmarked R8.5 billion ($446.04 million) for the expansion of its supply chain capabilities.
This strategic move is essential for managing costs effectively in the face of rising inflation and supply chain disruptions, ensuring seamless product availability for consumers.
Standard Bank in a recent statement confirmed that the $64-million funding is one of its largest vehicle and asset finance deals, in line with its Africa growth strategy.
The funds will be used to enhance logistics infrastructure, expand cold chain capabilities, and implement advanced logistics management systems, automation solutions, and data analytics tools. These efforts aim to optimize inventory management, route planning, and overall supply chain visibility.
Standard Bank’s $64-million boost: Shoprite’s strategic move amidst economic headwinds
Wiese, a key figure in Shoprite’s growth and a strategic owner with an 11.5-percent stake, has played a pivotal role in shaping its trajectory as Africa’s leading retailer. With a current fortune of $1.2 billion, Wiese’s holdings in Shoprite include a significant share of ordinary and deferred shares, along with common stock, underscoring his influence within the company.
Despite challenging operating conditions, Shoprite witnessed a marginal increase in profit, rising by 2.8 percent at the end of the 2023 fiscal year, reaching R5.9 billion ($308.55 million). This performance, achieved amidst rising energy costs and operating expenses, reflects the company’s resilience in navigating economic headwinds.
The $64-million injection from Standard Bank marks a pivotal moment for Shoprite as it fortifies its supply chain infrastructure to navigate the evolving economic terrain, ensuring continued efficiency and resilience in meeting consumer demands across Africa.
In the next two years, Shoprite plans to expand its distribution center capacity by more than 200,000 square meters to accommodate growth in its South African supermarkets, further solidifying its position as a cornerstone of the African retail landscape.
