- 02/08/2018
- Posted by: Julien Garcier
- Categories: Retail, SagaRetail, Zimbabwe
Namibia-based Choppies recently opened its 33rd store in Zimbabwe, but this has been overshadowed by the ongoing struggle for control of the retailer´s local operations.
On paper, Choppies´ Zimbabwean operation is 51% owned by Nanavac Investments (which is controlled by former Zimbabwean vice-president Phelekezela Mphoko’s family) and 49% by Choppies Enterprises Limited. But Choppies CEO Ramachandaran Ottapathu claims “We can’t continue with the 51% deal. We agreed at the time they would get 7% for helping us to set up in Zimbabwe. They have all along been getting dividends based on the 7% they actually hold.”
However, Mphoko is standing firm: “The law is very clear. We held a 51% stake from the beginning because retail is a reserved sector under the law in Zimbabwe… They want to undermine Zimbabwe’s laws … we won’t allow them to rob us.” However, Ottapathu maintains that Choppies has an option to buy the bulk of Nanavac’s shareholding in the operation for just USD1.
If you want to read more:
https://www.theindependent.co.zw/2018/07/06/battle-for-choppies-zim-intensifies/