Botswana-based supermarket Choppies Enterprises plans to spend $57 million to open more stores in Africa in the next 15 months.Speaking on Friday, Choppies Chief Executive Ramachandran Ottapathu said although profit after tax narrowed to $5.5 million, his firm would expand into the seven countries where it already has a presence.
Choppies, a no-frills retailer which has 202 stores in towns often too small to attract larger competitors such as South Africa’s Shoprite, reported a 47 percent drop in half-year profit for the six months to end-December.
The CEO said the capital expenditure in Botswana, South Africa, Zimbabwe, Zambia, Kenya, Tanzania and Mozambique will be funded mostly from internal cash flows.
The company plans to spend $12 million up to June this year and a further 450 million pula in the full-year until June 2018.
Ottapathu said Choppies, which makes around half of its sales in Botswana, plans to open 36 new stores in 2017.