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Business

Shoprite on nationwide shutdown, as workers embark on industrial strike action

Dozens of Shoprite outlets in Nigeria have been shut down as workers commenced an industrial strike action.

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Shoprite controls 22% of Nigeria’s formal retail, future to be driven by indigenous retailers
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Workers of retail giant, Shoprite have embarked on a nationwide industrial strike action demanding proper information on staff benefits as well as terms of sale to interested investors who are on course to acquire the Nigerian subsidiary of the South African retail outlet.

A report by the Foundation for Investigative Journalism (FIJ) suggests that all 25 outlets of Shoprite in Nigeria have been shut down by workers.

The report revealed further that the workers embarked on industrial action over claims of sale of the retail company to Palms Mall owners, Tayo Amusan and Persianas Properties Limited, without appropriate information on the terms of the acquisition, and the impact of it on their contracts.

The nationwide strike action which has seen 25 outlets of the retail brand closed today have been said to be flared up by inappropriate treatment of the company’s workers and issues related to the terms of their contract papers as many of them were to work with Shoprite South Africa until between 2035 and 2040.

What you should know

  • Recall that the South African retailer, Shoprite International Limited in August of 2020 laid bare plans to discontinue its operations in Nigeria, and as a result, resolved to sell-off majority of its stakes in the retail units in order to focus more on core operations and investment in Southern Africa.
  • The decision was taken at the back of the poor performance of the subsidiary driven by government policies such as border closures and tight competition from players like Spar, Justrite, Ebeano, Addide.
  • The report revealed that Tayo Amusan, a property developer and the promoter of the Palms Mall owned by Persianas Properties Limited is in talks with Shoprite to facilitate the acquisition of the leading retail company.
  • With a Nigerian company attempting a takeover from the South African retailer later this year, the staff of the retail unit have demanded to be paid off rather than run the risk of being dismissed under new management.

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Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.

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    Business

    Hyundai and Kia to set up an assembly plants in Ghana by 2022

    The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.

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    Hyundai to invest $87 billion into producing 44 new electric vehicles, Hyundai partners Kia to invest €100m in electric vehicles 
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    Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.

    Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.

    READ: This is the New Tarrif Structure For Importing Tokunbo & Brand New Cars

    Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.

    The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”

    READ: Toyota snubs Nigeria as it moves to establish assembly plants in Ghana, Ivory Coast 

    Why this matters

    More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.

    Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.

    SSKOHN

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    Business

    Passports: Backlog of undelievered passports to be fixed before May 31st – Minister

    The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.

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    +1

    The Federal Government disclosed that all backlogs of undelivered passport requests would be fixed before May 31st, and announced the launch of a new passport application system, which would be aided by fast track services nationwide.

    This was disclosed by Minister of Interior, Rauf Aregbesola, in a press briefing with newsmen on Thursday.

    What the Minister said

    “On or before May 31st, all backlogs of undelivered requests for passports will be totally met, unless such applications have a problem,” he said.

    “But before the deadline, the problematic application would be contacted, so that we know what’s wrong with the applications. Assuming there would be no problem, every successful application for a passport would be given a passport on or before May 31st,” he added.

    READ: Canada invites 3,900 new PR candidates, introduces new programme to attract Nigerians

    The new passport process

    The Minister disclosed that the FG will launch a new passport application process which would come into effect soon.

    “When you finish your application process, there would be a waiting period of six weeks to collect your passport, however, if you want an express service, there would be fast track centres nationwide, to meet requests for express passport users,” he said.

    What you should know 

    • Recall Nairametrics reported last month that the Federal Government inaugurated the Nigeria Immigration Service Passport Express Centre, which is a partnership with the private sector to enable the government offer passport services to Nigerians and make passports available in a maximum of 72 hours of a successful application.
    • The FG also launched the Electronic Temporary Passport to cater for Nigerians desirous of returning home but whose national passport is not available.

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