By Ekemini Simon
On 21st August 2015, the Governor of Akwa Ibom State, Mr Udom Emmanuel performed a ground breaking ceremony for the establishment of a South African retail outlet, Shoprite in Uyo.
The occasion which took place less than three months into his administration witnessed assurances from various government officials that the arrival of the firm in Uyo will bring to fore opportunities for Akwa Ibom people to be gainfully employed and also create wealth.
On the occasion, the Consultant of the project, the Managing Director of Resilient Africa- Mr. Holden Marshal promised to deliver the project within 18 months from its ground breaking "with the standard which Shoprite is known for over the years." That gave a heartwarming hope to Akwa Ibom people. The gains from the prospect of having a Shoprite took centre stage of discourse among Akwa Ibom people. The people were simply waiting for its inauguration. But what could really make the prospect of having a Shoprite that endearing, you may wonder.
Insight into Shoprite
Shop-rite, Africa’s biggest grocer, is a chain of shopping malls which began sales in 1946 and have been running successfully for 73 years, spreading across America and Africa. Shop-rite is popularly known as the leading shopping and retail market, with over 2800 stalls spread across thee world.
In Nigeria, the retailer operates stores in 20 States of the Federation with the largest being the stall in Ibadan, the Oyo State capital.
According to the Chief Executive of the retail firm, Pieter Engelbrecht, in Nigeria, they operate to support Nigerian businesses. " In our commitment to supporting local enterprise, Shoprite has built relationships with over 550 Nigerian suppliers, service providers and farmers, securing a wide assortment of local brands," he explains.
He further adds " We also strive to give Nigerian entrepreneurs the platform to grow and sell healthy, nutritious food that benefits the environment and sustain safer food supply." Engelbrecht points out to the fact that by supporting local farmers, Shoprite is ensuring there will be farms in Nigerian communities.
With such mouthwatering opportunities, Akwa Ibom people were eager to see the company begin operation. Nevertheless, after the ground breaking, their expectations were far from coming to fruition. The construction of Shoprite in Uyo was still at the foundation level. What went amiss? That must be the question on your mind.
What happened
Speaking with Journalists on Thursday, 7th February, 2019 at the site where the groundbreaking was done at the Ibom Tropicana, the CEO overseeing the project, Mr Olumide Akinsaya disclosed that because of the instability of Nigeria's economy since 2015, the retail firm had fears of investing her money in order to avoid losses.
" It was because of the economy of Nigeria at that time in terms of volatility of the local currency. The project was kept on hold," he said.
Premuimtimes report of February 22, 2017 corroborates the claim of Mr Akinsaya. It reports that Shoprite expansion in Nigeria had faced hurdles in 2017 and the year preceding 2017 due to what it described as " dearth of shopping centres."
The Online news medium quoted the Chief Executive of the retail firm, Pieter Engelbrecht, as stating that the firm has scaled back its store openings in Africa’s most populous nation.
In addition, This Day Newspaper reports that the reason for scaling back was because of foreign exchange fluctuations in Nigeria.
The report adds "Shares in Shoprite tumbled...The shares were down 6.44 per cent, on track for their worst daily fall since December 2016". Considering, the condition faced by the retailing company, one may wonder; has the plan to open the firm in Uyo been totally thwarted?
Interestingly, that may not be the case. Hope is alive.
Shoprite begins work in Uyo.
42 months after foundation for the project in Uyo had been laid, Shoprite has began the construction of its anchor that will feed the mall. The project which the firm says is the modification of their base, Ibom Tropicana centre will have Shoprite as the anchor.
According to the Chief Executive Officer of the firm in Akwa Ibom State, Mr Olumide Akinsaya,
Akwa Ibom State government has leased out the Ibom Tropicana recreational centre Shoprite to use for its operation. He noted that although they will build an anchor that will serve the mall, they will undergo modification of the centre to fit their design and taste.
Akinsaya revealed that the project is estimated at about 15 million dollars and it is fully funded by Shoprite. Commenting on the contribution of the Akwa Ibom State government, the CEO said that the interest of the State is fully protected with 25 per cent equity. But what informs the reason for shoprite to return after 42 months?
Akinsaya answers " The project was kept on hold because of the volatility of our currency. But you can attest to the fact that the dollar has been stable in the last 18 months and that has informed our reasons to return to work."
What is more? the CEO explains that why Shoprite has insisted on pursuing its business investment in Akwa Ibom State is what the retail company stands to gain from the State. He notes " Among the first 20 fastest growing cities in the world, Uyo is number seven. That has informed our strong decision to invest in Uyo. Shoprite is very happy to return to Uyo".
With the intensified level of the remodeling work ongoing, Akinsaya assures that in six to eight months time, everything will be completed for the people to start shopping in the mall. He explains that the seeming delay will be occasioned by importation delay on some of the equipments that will be used since issues about importation is beyond their control.
Expressing the feelings of Akwa Ibom State Government over the return of Shoprite after many months of foundation laying, the Chairman, Technical Committee on Foreign Direct, Investment, Akwa Ibom State, Mr Gabriel Ukpe noted that Akwa Ibom State is delighted to have Shoprite renew its interest to invest in the State.
While likening Akwa Ibom State to a beautiful and virtuous woman who has been approached by Suitors for marriage, he said " A young can come to your parent, knock the door and then go without coming back. He could have been distracted by other women and there is nothing you can do about it. It is his money that he wants to use for the marriage.
" But there can be another man who after approaching the family, let the list, return back to work so as to see how he can meet up with the marriage demands. All you do as a woman is to continue encouraging him.
" So, in Akwa Ibom State, all we can do is continue creating enabling environment, massage their ego and they come in."
But since profit is always expected from investments, what really do Akwa Ibom State stand to gain from the presence of Shoprite in Akwa Ibom State.
Gains of Shoprite in Akwa Ibom state
Commenting on what Akwa Ibom State stands to gain from Shoprite, the CEO of the retail company, offered insight to the fact that when operational, Shoprite will put Uyo and by extension the State in the global map with a model retail shopping center in the world.
He mentioned that Shoprite will provide direct employment of about seven hundred indigenes while indirect employment will be about three times of 700.
The CEO also said that the grocery retailer will get their supply from the locals and that will encourage the farmers to improve in the quality of what they do.
He added " When Shoprite finds out that things are cheaper here, they will buy from here and take to their other stalls which are nearby like Enugu, Owerri, and Port Harcourt which will be coming up shortly. So there will be improvement in agricultural cultivation here.
"Besides that, the buyers will realize they buy quality products. For example, these days, when you go to buy drink, you are not sure weather it is original or produced from the real producers. Coming into Shoprite, quality control is unparalleled."
Besides the direct gains to the people, what then will be the direct benefit to the State government?
Akinsaya respond " With such a market, we will pay tax to the State and we are going to bring not less than 15 new retailers to Uyo. These people will rent houses, employ the indigenes and will pay tax too".
He added that the people will have opportunity to also enjoy not only quality goods, but affordable goods.
The CEO noted that currently at the construction stage, indigenes of the area are the ones who carry out supplies and the construction.
The words of the CEO of Shoprite offers indication of immense potential for the State. But is the State and its people ready to embrace these investment potentials?
The Chairman, Technical Committee on Foreign Direct, Investment, Akwa Ibom State, Mr Gabriel Ukpe notes that the State has placed herself to benefit from the investment potentials of Shoprite as the administration of Governor Udom Emmanuel has worked for peace to be maintained in the State.
He insisted that without peace in the State, Shoprite among other investments will not be sustained.
Ukpe further mentioned that Governor Emmanuel had sown into the future by starting Vegetable revolution in other to sustain a chain like Shoprite.
Confirming Ukpe's stance, the Senior Special Assistant to Governor Udom Emmanuel on Technical Matters and Due Process, Engr Ufot Ebong said " Governor Udom Emmanuel plans ahead, when he started the vegetable revolution, Akwa Ibom Started planting varieties of vegetables like tomatoes, onion, garbage, name them, all these are common vegetables that you see in Shoprite shops.
"When we started discussing with Shoprite, they had told us that they buy their products from the locality and that they do not import. So we started experimenting to see whether our soil can sustain a chain like Shoprite. So far, you have seen the high yield we get."
He said currently, the government is planting vegetables on over 100 hectares of land but called on Akwa Ibom people to embrace the vegetable revolution so as to improve their economic fortunes.
He added " We urge Akwa Ibomites to start cultivating these vegetables, by the time Shoprite is ready, we should be able to supply them".
As Akwa Ibom people expect Shoprite to
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