DEG reveals details of investment in Kenyan retailer Naivas
German development financier DEG has officially announced its investment in Kenyan supermarket chain Naivas, which operates more than 60 stores. DEG is providing up to $10 million, with co-investors including Amethis Fund II and the International Finance Corporation.
The new capital will enable Naivas to further develop its store-based services and to expand its online offering. Investment will also be made in supply chains and business organisation to further enhance the quality of service and products. At its current size of around 6,000 staff, Naivas is already a major employer in the Eastern African country.
Monika Beck, member of the management board of DEG, explained, “By investing in Naivas our intention is to support the further development of a company that is using innovation to drive progress in the Kenyan retail sector and feed many Kenyans, while at the same time setting a course for sustainable growth.”
Managing director of Naivas, David Kimani, said, “We are very excited about this partnership. As we embark on our next phase of growth, having an experienced investor with us will further strengthen the business.”
In recent years Naivas has started to take a new approach in its supermarkets, adding significantly more fresh products to its lines. Over 90% of goods offered now come from local and regional suppliers.
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