NAKUMATT launches era of East African expansion

September 1, 2008 |

Planet Retail 25 Aug 2008

Kenya's largest retailer Nakumatt has finally launched its first foreign market operation, in Rwanda, opening its first store in the capital city Kigali. The supermarket represents a USD3 million investment and is located at the Union Trade Center (UTC), trading from 2,300 square metres. Speaking at the formal store opening presided over by Rwanda's Minister of Commerce, Monique Nsanzabaganwa, Nakumatt COO Thiagarajan Ramamurthy described the opening of the new store as a milestone for the Nakumatt group. He disclosed plans to invest more than USD20 million in further expansion projects in East Africa, including one more store in Rwanda, three in Uganda, and four in Tanzania.

Meanwhile, Nakumatt will expand its home market network in Kenya to 30 outlets during the next two years, up from 19 at the end of 2007. Ramamurthy said that through Nakumatt's first step abroad, "we shall also be focusing our energies on the transfer of global retail best practices to the Rwandan retail marketplace" while fostering the growth of local manufacturers and producers. The market entry into Rwanda has been one of the most prominent results so far of an investor partnership programme spearheaded by the Rwanda Investment and Export Promotion Agency (RIEPA). Nakumatt is also the first foreign retail group to venture into Rwanda and is likely to keep the lead in the modern retail sector in the foreseeable future.

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