Nigeria, Namibia offer richer pickings for Imperial than SA
While local conditions are gloomy, the picture is completely different in other parts of Africa
Unrelenting weakness in the SA consumer market supports the strategy of Imperial Logistics (https://www.sharenet.co.za/v3/quickshare.php?scode=IPL) to take its growth aspirations to other African countries.
With no end in sight to low economic growth and increasingly competitive trading conditions in SA, Imperial has exited the consumer packaged goods business here.
Notwithstanding the cost of exiting the consumer business – in the form of an impairment of assets including goodwill of R590m and provisions for closure costs of R850m – Imperial feels that walking away is a logical move under the circumstances...