African Footprint Shaun Temmers (Compliance Manager – International Trade Dept) The Shoprite Group 2 Historical Event List • 1979 • Acquire 8 Shoprite stores • 1986 • Shoprite with 27 stores is listed on the JSE • 1991 • The chain of 169 Checkers stores is acquired • 1995 • The first Shoprite store trading in Zambia • 1997 • Shoprite acquires OK Bazaars consisting of 157 super and hyper stores and 146 furniture stores 3 Shoprite Holdings 4 Size of Operation June 2011 (year end) 5 Turnover R72bn Owned Outlets 1,246 Franchise Outlets 274 Countries 16 Employees 95,050 Non RSA Profile Exports Why passion for trading in Africa? • Market opportunities in Africa • Growth • SA enters world economy (post ’94) • First in country • Similar trading conditions to South Africa • Socio-economic development of African communities • Strengthening local economies 7 Open Markets and Small Retailers 8 Open Markets and Small Retailers 9 Traditional Street Vendors 10 Shoprite in Africa Store : Accra, Ghana 11 Typical Store in Africa Store : Belas, Angola 12 Sample of Product Mix Perishables Fruit and Vegetables Wine 13 Sample of Product Mix Toiletries Dry Groceries 14 Non Foods Export Compliance PPECB – temperature control Phyto Sanitary Certificate Fumigation Certificate Veterinary Health Certificate Certificate of Analysis NRCS Certificate 15 Material Safety Data Sheet Hazardous Declaration Port Health Certificate Average Export Load Invoices 6 Items per Shipment 300 Export Documentation per Shipment +-302 SADC Certificates 50 16 Trends & Challenges 17 • Power failures • Changing legislation • Permit control • Customs control • Political unrest • Infrastructure & weather conditions • Cold chain Trends & Challenges Vessels waiting to berth Off-loading PORT OF LUANDA, ANGOLA 18 Find your container Trends & Challenges Shoprite Container Find your container? Good luck! PORT OF LAGOS, NIGERIA 19 Trends & Challenges Find your container? Good luck! Road Congestion 20 Trends & Challenges Off-loading containers fromyour Vessel Find container? Good luck! 21 Trends & Challenges Find your container? Good luck! Road Conditions 22 How to Succeed in Africa • Research & selection of country • Analysis, information & knowledge (accuracy & reliability) • Develop trading partnerships (reputation) • Recruitment & training of people • Start operation • Measure & evaluate • Review & develop continuously 23 Discussion