Sefalana keeps faith in cautious strategy
Friday, August 02, 2019
Sefalana says it does not want to cannibalise its existing stores PIC: MORERI SEJAKGOMO
The group plans to focus on low risk markets is an apparent strategy to avoid troubles facing Choppies, its prime rival.
Choppies, which is currently suspended from trading on the Botswana Stock Exchange and faces liquidity pressures, is known for its aggressive growth model. Through the strategy, it set up 212 stores across seven countries within a decade.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...