Pioneer Foods Limited, a South African food and beverage producer has acquired a 50.1 per cent stake in Nigerian competitor Food Concepts Plc.
Food Concepts is an operator of quick-service restaurants and bakeries in Ghana and Nigeria, Africa’s largest economy.
The company’s head of international business, Thushen Govender said in an interview with Bloomberg said “We’re talking to entrepreneurs for opportunities to expand our investments in the continent.
“Our focus is on larger economies with a higher population — for example, Angola, Kenya, Ethiopia, Tanzania and Ghana.
“Our approach to investing in Africa is long term,” even if “over the short term there may be concerns.
“In the case of Nigeria, the exchange rate and growth level could be of concern because of the dependence of the economy on oil, though because of the younger population, we see a lot of opportunities.”
Govender added that the acquisition will enable the company to expand beyond South Africa.
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