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Choppies to buy Kenyan supermarkets

As part of extending its footprint in Africa the Retail Giant Choppies group has ventured into the Kenyan market.

The company announced a conditional agreement with Ukwala Supermarkets to acquire 10 outlets in Kenya. Choppies, which listed its 1.2 billion shares last Monday on the Johannesburg Stock Exchange, said that the transaction was in line with its plans to have a footprint across the African continent.

Choppies seek to expand into new markets in sub-Saharan Africa and has stated its target of operating over 200 stores across at least six countries by December 2016.

Ukwala is a recognised and well-regarded brand in the Kenyan market and the stores will trade as Choppies Ukwala supermarkets.

The Transaction provides the Company with an immediate footprint of established stores and a platform from which to grow in Kenya. The retail giant will take over Ukwala branches in Nairobi, Nakuru and Kisumu, giving it a major launch pad into Kenya’s lucrative retail sector.

 Choppies will operate with a 25% local partner in Kenya in terms of the joint-venture agreement with the promoters of Export Trading Group, the leading agricultural commodities trading and logistics business, long-established in the region. The supermarkets will be acquired by Choppies Supermarket Kenya Limited, in which the Company holds a 75% interest.

Choppies Supermarket Kenya Limited will buy the assets and the business name for a purchase consideration of approximately US$10 million, subject to final due diligence and inventory valuation. The purchase consideration will be funded with debt and from existing cash resources.

The implementation of the Transaction is subject to approval of the Competition Authority in Kenya and other relevant regulatory approvals.

Choppies operates 125 stores in Botswana, South Africa and Zimbabwe. Choppies also plans to start operations in Namibia, Zambia and Tanzania in the next two months targeting lower-to middle-income consumers, which would see it build from its initial 57 stores in Botswana.

The acquisition is to be funded via debt and existing cash reserves and is subject to final due diligence and inventory valuation.

The chain’s chief executive officer, Ramachandran Ottapathu, said the successful listing on JSE had given them the much-needed impetus to expand further into the East African market.

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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