Al Futtaim, GTBank key firms to watch

Majid Al Futtaim is the franchise holder for French-owned retailer Carrefour. PHOTO | AFP 

By CONSTANT MUNDA

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Summary

• Majid Al Futtaim and GTBank have emerged as top multinationals which will rule investments in developing markets in the next four years.
• The Economist Intelligence Unit (The EIU) says Majid Al Futtaim, the franchise holder for French-owned retailer Carrefour, is the firm to watch in the retail sector in the Middle East, North Africa and sub-Saharan Africa with a key focus on Kenya and Egypt.

Dubai-based shopping conglomerate Majid Al Futtaim and Nigeria’s GTBank, which have strong presence in Nairobi, have emerged as top multinationals which will rule investments in developing markets in the next four years.

The Economist Intelligence Unit (The EIU), the research and analysis arm of the Economist Group, lists the two among 12 global firms which will leverage on strong growth in trade in developing markets to spread their wings.

EIU says Majid Al Futtaim, the franchise holder for French-owned retailer Carrefour, is the firm to watch in the retail sector in the Middle East, North Africa and sub-Saharan Africa with a key focus on Kenya and Egypt.

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The growth-hungry conglomerate has made clear its aggressive expansion drive in Kenya, taking up spaces previously occupied by cash-strapped Uchumi and Nakumatt at prime locations in Village Market, Sarit Centre, the Junction, Galleria and Thika Road Mall.

Since opening its first store at the Hub in upmarket Nairobi’s Karen in May 2016, Carrefour —ranked the world’s second-largest supermarket chain after America’s Wal-Mart Stores — has grown its network to six strategically-located outlets.

The giant French retailer has also shown interest in moving into the Nakumatt Mega space — along Uhuru Highway — when the struggling retailer’s lease expires this month.

“Armed with an exclusive licence to operate Carrefour stores in 38 countries and a sturdy cash flow from its domestic activities, it has plenty of room to grow further,” EIU says in the report titled Going Global: 12 Companies to Watch in Developing Markets.

“It has been spreading roots in neighbouring countries such as Kenya and Egypt, with plans to launch 100 Carrefour stores in the latter.”

The only other firm in the elite list which has a presence in Kenya is GTBank, whose local subsidiary was ranked the 20th largest lender by market share in 2017 by the Central Bank of Kenya.