Investec, RMB acquire stake in Botswana-based retailer

Investec Asset Management and RMB Ventures recently announced their acquisition of a stake in Kamoso, a Botswana-based retailer and consumer goods company. The move is part of a strategic expansion into the African private equity space, with a focus on creating a regional champion in the consumer and retail sector. Joining CNBC Africa for more insights on this deal, Peter Baird, Head of African Private Equity at Investec Asset Management, discussed the potential growth opportunities in Botswana and beyond. Botswana, despite facing macroeconomic challenges in the past year, has shown signs of recovery. The country is considered a solid middle-income economy with a strong demand for retail products, especially within the middle LSM consumer staples sector, where Kamoso has a significant presence. With the largest liquor store and DIY hardware chains in the country, Kamoso is well-positioned to benefit from Botswana's economic recovery and the expected growth over the next five years. Baird highlighted the attractiveness of Botswana's private equity space, noting that the country's small population is offset by a thriving private sector and an investor-friendly environment. The strategic partnership between Investec Asset Management, RMB Ventures, and Kamoso aims to leverage Botswana's infrastructure, access to capital, and skilled labor force to establish a regional presence. The plan includes expanding operations into neighboring markets such as Zambia, Zimbabwe, and potentially South Africa to create a regional retail powerhouse. Despite the challenges in countries like Zimbabwe, Baird expressed confidence in the robust formal sector and growth potential for Kamoso. Zimbabwe's proximity to Botswana and its demand for imported goods present opportunities for expansion. On the other hand, Zambia's emerging formal retail sector and strong economic drivers, including a booming agricultural sector and favorable copper prices, make it an appealing market for future growth. While political instability remains a concern, the long-term growth prospects in Zambia are promising. The acquisition of a stake in Kamoso provides a solid foundation for Investec Asset Management and RMB Ventures to tap into the growth potential of Botswana and expand into new markets. With a cash-generative business in Botswana, the companies are well-positioned to fund their regional expansion plans and capitalize on the evolving retail landscape in Southern Africa. The partnership is poised to strengthen Kamoso's position as a leading player in the regional consumer and retail space, driving sustainable growth and profitability.