Pick n Pay opens fifth Zambian store in Kitwe

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The retailer opened its first store in Zambia in 2010 and apart from the store in Kitwe has three stores in Lusaka and one in Ndola.

Next year it will open new stores in Ndola‚ Luanshya and Lusaka.

It currently operates 94 stores in African countries outside SA with one in Lesotho‚ 10 in Swaziland‚ nine in Botswana‚ 17 in Namibia‚ one in Mozambique with a second store opening next month‚ two in Mauritius and 48 operating in Zimbabwe under the TM brand.

Next year it will open a store in Malawi and in 2014 one in Lubumbashi in the Democratic Republic of the Congo.

The International Monetary Fund's Survey magazine said earlier this year that the odds are in Africa's favour in 2012 as it seeks to sustain its impressive growth performance of recent years that has lifted millions out of poverty.

In 2011‚ against a threatening global backdrop‚ most economies in sub-Saharan Africa turned in a solid performance. Growth averaged more than 5% and export shares stayed high.

Stumbling trade barriers

A World Bank report showed how African countries are losing out on billions of dollars in potential trade earnings every year because of high trade barriers with neighbouring countries‚ and that it is easier for Africa to trade with the rest of the world than with itself.

According to the report‚ "De-Fragmenting Africa: Deepening Regional Trade Integration in Goods and Services"‚ regional fragmentation could become even more costly for the continent with new World Bank forecasts suggesting that economic slowdown in the eurozone could shave Africa's growth by up to 1.3 percentage points this year.

Trade and regional integration are core elements of the World Bank's new Africa strategy‚ launched in March 2011‚ to help countries create opportunities for their transformation and sustained growth. The bank has doubled its investment in regional integration from US$2.1 billion in 2008 to US$4.2 billion in July 2011‚ and it will rise to $5.7 billion by July 2012.

Cost of import permits

Barriers include trade permits‚ export taxes‚ import licenses‚ and bans‚ all of which are persistent.

World Bank trade research showed that Shoprite (SHP)‚ for example‚ spends $20‚000 per week on securing import permits to distribute meat‚ milk‚ and plant-based goods to its stores in Zambia alone.

For all countries it operates in‚ approximately 100 (single entry) import permits are applied for every week; this can rise up to 300 per week in peak periods. As a result of these and other documentary requirements there can be up to 1‚600 documents accompanying each truck Shoprite sends with a load that crosses a Southern African Development Community (SADC) border.

Local supply sources

That is in part why the new 3‚500 square meter Pick n Pay store located in the Copperhill shopping mall in Kitwe is sourcing the majority of its range from local suppliers.

"One of the most gratifying features of our presence in Zambia has been the extent to which we have been able to source much of our produce from local suppliers‚" Pick n Pay head of group enterprises for Africa‚ Dallas Langman said.

"When we first ventured into the Zambian market‚ we gave an undertaking to government that we would procure 50% of our goods from local suppliers‚ as part of our commitment to developing indigenous enterprises and entrepreneurs. In fact‚ we have considerably exceeded this target and are now sourcing 75% of our stores' goods from Zambian manufacturers‚ agents‚ and importers‚" he added.

Pick n Pay undertook to source 50% of its fruit and vegetables for the Zambian store from local producers. This proportion of fresh produce is now at between 60% and 70%‚ depending on the season.