- Company accused of performing dismally on localisation - Foreigners still dominate senior positions at headoffice
Shoprite Holdings is not only battling accusations of using some prominent citizens to front for business, but the company is also performing poorly in localisation of senior positions at its headquarters.
Recent media reports indicate that Shoprite International, a company registered in Mauritius, owns a bottle store in one of the upmarket malls in Gaborone, fronting with a license belonging to a couple who are Botswana citizens, a breach of citizen empowerment laws, which allows only citizens to run bottle stores.
The Localisation Policy, which is based on the Revised National Policy on Incomes, Employment and Profits, 2005, is a state-driven policy that aims to encourage businesses operating in Botswana, especially foreign-owned companies, to employ citizens rather than non-citizens of the same or similar.
A report released by Statistics Botswana in 2021 titled, 'Work Permit Holders Fourth Quarter 2020' shows a significant decline in foreign labour in favour of citizen employees. The statistics show that between 2011 and 2014, there was a significant decrease in employee work permit holders, from 10 054 to 4 092, a decrease of 59.6 percent.
According to the media reports not only has the continent’s biggest retailer by-passed these laws to empower a local attorney Abdool Rahim Khan and Nazeer Hikmet Khan who are shareholders and directors of Naz Investments, the company is said to be side-lining Batswana for management positions.
Abdool owns 75 percent of the company, while Nazeer owns 25 percent of the remaining shares. Naz Investments has since claimed to conduct its business in terms of franchise arrangement concluded with Retail Holdings Botswana which is owned by Shoprite International.
Retail Holdings Botswana’s shareholder is Shoprite International Limited. The directors of Shoprite International Limited are South African citizens. The group is also performing badly as far as localisation of senior positions in management is concerned.
“Shoprite not only uses citizens to front which is terrible but also employs majority of foreigners in management positions. They bring foreigners especially South Africans for three to four years and send them back. They do not train locals to take over those positions,” a source at Head office in Gaborone, let the cat out.
The source said this clearly indicates that Shoprite does not believe that localisation is good for the economy and urged government to closely monitor the operations of some of these foreign owned retail stores.
“They can employ expatriates where there are skills shortages but with proper skills transfer plans in place. This will help to upskill and some will end up owning retail stores because of skills transfer,” the source said, before adding that Botswana has abundant skills to run these retail stores.
“There is no reason for Shoprite to import skills that are locally abundant in Botswana.”
Shoprite prides itself as Africa’s largest food retailer. It operates in nine African countries with 2 617 corporate stores and 535 franchise outlets with over 152 000 employees.
Shoprite Holdings’ Group Media Team had not responded to a questionnaire sent to them last week which was acknowledged under reference number: 1694693324558.
Recent media reports indicate that Shoprite International, a company registered in Mauritius, owns a bottle store in one of the upmarket malls in Gaborone, fronting with a license belonging to a couple who are Botswana citizens, a breach of citizen empowerment laws, which allows only citizens to run bottle stores.
The Localisation Policy, which is based on the Revised National Policy on Incomes, Employment and Profits, 2005, is a state-driven policy that aims to encourage businesses operating in Botswana, especially foreign-owned companies, to employ citizens rather than non-citizens of the same or similar.
A report released by Statistics Botswana in 2021 titled, 'Work Permit Holders Fourth Quarter 2020' shows a significant decline in foreign labour in favour of citizen employees. The statistics show that between 2011 and 2014, there was a significant decrease in employee work permit holders, from 10 054 to 4 092, a decrease of 59.6 percent.
According to the media reports not only has the continent’s biggest retailer by-passed these laws to empower a local attorney Abdool Rahim Khan and Nazeer Hikmet Khan who are shareholders and directors of Naz Investments, the company is said to be side-lining Batswana for management positions.
Abdool owns 75 percent of the company, while Nazeer owns 25 percent of the remaining shares. Naz Investments has since claimed to conduct its business in terms of franchise arrangement concluded with Retail Holdings Botswana which is owned by Shoprite International.
Retail Holdings Botswana’s shareholder is Shoprite International Limited. The directors of Shoprite International Limited are South African citizens. The group is also performing badly as far as localisation of senior positions in management is concerned.
“Shoprite not only uses citizens to front which is terrible but also employs majority of foreigners in management positions. They bring foreigners especially South Africans for three to four years and send them back. They do not train locals to take over those positions,” a source at Head office in Gaborone, let the cat out.
The source said this clearly indicates that Shoprite does not believe that localisation is good for the economy and urged government to closely monitor the operations of some of these foreign owned retail stores.
“They can employ expatriates where there are skills shortages but with proper skills transfer plans in place. This will help to upskill and some will end up owning retail stores because of skills transfer,” the source said, before adding that Botswana has abundant skills to run these retail stores.
“There is no reason for Shoprite to import skills that are locally abundant in Botswana.”
Shoprite prides itself as Africa’s largest food retailer. It operates in nine African countries with 2 617 corporate stores and 535 franchise outlets with over 152 000 employees.
Shoprite Holdings’ Group Media Team had not responded to a questionnaire sent to them last week which was acknowledged under reference number: 1694693324558.
