A few days ago, I came across an interesting Twitter thread by Kenyan Economics professor David Ndii.
The thread, which was written about Kenya, could just as easily have been written about Nigeria, Ghana, Tanzania, Uganda, or just about any other British-ruled African territory which gained independence in the 1950s and 1960s.
It sought to dismantle the popular African postcolonial myth that holds that “things used to be better back then than they are now.” Using incontrovertible statistical comparisons such as childhood survival rate, entry rate to primary and secondary education, and the number of university graduates, Prof. Ndii pitted post-independence Kenya against modern Kenya.
The conclusion was that as counterintuitive as it sounds nowadays, Africa today is a much better place than Africa in 1961. The process of change from a postcolonial entity with a tiny intellectual elite, to a bustling country with a large aspirational class has not – contrary to popular opinion – made things worse.
Things are in fact much better now than at any other time in recorded modern African history. In other words, the results of change are more often than not, simply a matter of perspective.
Ketron Acquisition – A Different Perspective
The Q4 2020 statement announcing that Shoprite’s assets in Nigeria were to be acquired by a local investor split public opinion down the middle in Nigeria. Some saw it as an opportunity for Nigerians to stake a claim in a sector heavily dominated by a foreign player.
Others saw the effective exit of the said foreign player as a bad sign for a sector that it had played a key role in developing. Over the course of 15 years, South African retail giant Shoprite had grown its Nigerian presence from a single location in Lagos to over 25 locations across Nigeria. So what now?
As I came to understand while reading up on the acquisition deal, the full picture is significantly more complicated than “x is leaving Nigeria” or “y is taking over from x.” In fact, to understand what this acquisition deal represents, it is important to take a look at the acquiring entity itself.
Ketron Investment Limited, owned by a small group of investors including Persianas Investment Limited is led by Tayo Amusan. Persianas is a Nigerian retail and real estate behemoth which has under its belt several signature developments like the 45,000 sq km Palms Shopping Complex in Victoria Island, Lagos.
In addition to developing and managing groundbreaking shopping mall developments in Lagos, Enugu, Ibadan, and Ilorin where Shoprite was the anchor tenant, the buyout deal itself gives Ketron control over Shoprite’s 25 store locations, 2,000+ employees, and 300+ suppliers. MBO Capital, KPMG, and Banwo & Ighodalo advised on the deal.
To put it plainly, Ketron not only has the financial heft but also has the managerial capacity to manage Shoprite’s Nigerian assets. After 15 years of working closely with and assisting Shoprite in its expansion across Nigeria, Ketron Investment led by Persianas is probably in fact the only Nigerian entity that can truthfully claim to not only understand Nigeria’s big-box retail sector, but also have ideas and strategies to advance the business beyond where it is now.
The Next Frontier in Nigerian Retail?
The reason I cited Prof Ndii’s Twitter thread at the outset was to use a broadly familiar example from the African context to illustrate the importance of perspective.
If what could objectively be seen as a crisis could also become the 20th century’s biggest economic and political opportunity to advance humanity, then it is no stretch of the imagination to say that the acquisition of Nigeria’s biggest retail brand by a local investor with proven managerial acumen could be a huge opportunity.
When reading the communication coming out of Ketron, there is no sense of a company that feels like it has either defeated an adversary or taken on a daunting challenge. The mood instead is that of quiet optimism and thinly-veiled determination to make the most of an unusual opportunity.
As against a hurried retreat from a challenging business environment, the acquisition of Shoprite’s operations in Nigeria by Ketron reads more like a leg of a relay race handing over to the next to infuse their own energy and ideas. Certainly going by the announcement of the acquisition, there are no plans whatsoever to scale back on growth ambitions.
Having stated categorically that the new management team intends to retain all 2,000+ Shoprite staff across Nigeria and even grow the existing team, Chairman, Ketron Investment Limited, Tayo Amusan said:
“This is a huge opportunity to make a difference. These are unprecedented times and this big move signals the big plans for the franchise in Nigeria. We’re working hard with the Shoprite team to ensure that the shopping experience does not change but is improved to make sure that we all fall in love with the supermarkets once again. There is a lot of opportunity in Nigeria and I’m excited to tap into a slice of it with Shoprite. It’s a chance for us to prove that even in the midst of current global and local declines, we can break the mould.”
David Hundeyin is a writer, travel addict, and journalist majoring in politics, tech, and finance. He tweets @DavidHundeyin.
