Uchumi to open first branch in Kigali by the end of year

What you need to know:

Chief executive Jonathan Ciano said Thursday the retailer would employ 150 workers.
The supermarkets chain said it plans to open more outlets in the rest of Africa.

Uchumi Supermarkets will open its first branch in Kigali by year end as it seeks to cement its regional presence and diversify from the domestic market.

Chief executive Jonathan Ciano said Thursday the retailer would employ 150 workers. He did not disclose how much the project would cost.

“We are seeking more growth and expansion across the region. We will be opening two more branches in Dar es Salaam by the end of June to add to the existing three,’’ Mr Ciano told the Business Daily.

The supermarkets chain said it plans to open more outlets in the rest of Africa.

Uchumi’s entry into Rwanda sets the stage for competition with Kenya’s largest retailer Nakumatt.

The retailer is also expected to face stiff rivalry from Simba Supermarkets and the Chinese T-2000 shops which are popular in Rwanda.

He said the regional expansion coincides with its strategy to cover major towns. “This will be possible as we will by the end of this week open a new branch in Maua as we wait to open another one in Kisumu by May,” he said.

Uchumi, which has six branches in Uganda, plans to use cash from its planned rights issue to open stores in Rwanda and South Sudan this year.

READ: Uchumi targets June to conclude Sh1.5bn cash call

The expansion drive comes as its rival Nakumatt is closing a deal to acquire three Tanzanian outlets owned by South African retail chain Shoprite.

Tanzania’s Fair Competition Commission public relations manager Frank Mdimi told the Business Daily Thursday that the acquisition of three Shoprite shops by Nakumatt is almost concluding.

The agency is responsible for promoting fair competition in trade and marketing and safeguards consumers from unfair market practices.

The Nakumatt deal involves the takeover of three Shoprite outlets — one in Arusha and two in Dar es Salaam at an estimated Sh4 billion.

Earlier, there were reports that the Nakumatt deal with Shoprite had hit a dead end with the industry regulators blocking the transfer.

“Those were small issues which have now been sorted out and we will give details of the progress as the acquisition of the stores comes to an end,’’ said Mr Mdimi.