Michael Chu’di Ejekam delivered a presentation on the Broll event titled “Retail Industry: 10 Years from Now”. Michael’s presentation focuses on Nigeria’s retail development and is aptly named “The next generation of malls in Nigeria – the same? or Adapt?”. Check this slideshare for more information.
Download Michael Chu’di Ejekam Presentation HERE
As a thought leader in Africa’s retail revolution, Michael Chudi Ejekam constantly has eyes on how businesses throughout the region are doing. This enables him to keep a pulse on the industry and assess opportunities for growth, as well as offer advice to companies he consults, so that they may avoid the same pitfalls other enterprises have made. Like Michael Chudi Ejekam, Deloitte Global also offers insights into global matters for investors, and the group has recently published their findings for the top retailers in Africa. Here’s a look at their top five, as well as some background information on each.
Michael Ejekam’s opinions on Shoprite Holdings Ltd have been covered by the media repeatedly. The powerhouse brand topped the charts by bringing in $9.9 billion during the last reporting period.
The Wal-Mart subsidiary, Massmart Holdings Ltd, has been in the news lately because it isn’t quite hitting the mark in terms of expected growth, but company officials aren’t worried at all. According to Bloomberg, Chairman Christo Wiese told an audience at the Consumer Goods Forum’s global summit that businesses need to plan to stay for the long haul before setting up shop in Africa for this reason. CEO Doug McMillon also remains optimistic about the region. “South Africa is a terrific market and it gives you something to work with but our aspirations are for the sub-Saharan African region,” he said. The company hit $7.5 billion during the last reporting period and took second place.
During the same reporting period, Pick n Pay Stores Ltd reached $6.3 billion. The company recently announced that its profits were up a full 26%, and that it plans to expand. Their revamped strategy for growth includes expansion into Nigeria and opening 175 stores in various formats. The heart of it will be in Nigeria, with 51% of operations being held within the country.
Eyes have been on the SPAR Group Ltd, as the company has recently been working on expansion outside of Africa. However, Chief Executive Officer Graham O’Connor reassured Bloomberg in an interview, “The Southern African region is still our primary focus — we are seeing good returns in Botswana, Zambia, and Mozambique.” The company brought in $5.2 billion and came in fourth place during Deloitte’s research. At the time of the Bloomberg interview, another 5% increase in sales was noted.
Recently named “South Africa’s Most Reputable Retailer” and reporting strong gains globally. Woolworths Holdings Ltd easily made its way into the top five. With earnings of $3.8 billion, the company beat out the next in line by more than $2 billion. CEO Ian Moir gives credit to clothing sales in South Africa, which recently jumped up 11.7%.
To stay up to date on retail news, as well as industry-related info throughout Africa, please bookmark the Michael Chudi Ejekam Blog and check back frequently for updates.
Expert retail developer and popular speaker, Michael Chudi Ejekam, releases new YouTube channel to share valuable insights and trends regarding retail development in Nigeria and beyond. Ejekam plans to share videos highlighting various retail establishments. To learn more visit: http://michaelchudiejekamrealestate.com/
Michael Chudi Ejekam, expert retail developer, shares his insights on market trends. Now investors or business owners wishing to build retail shopping malls or roll out grocery chains, have access to a new YouTube channel geared to educating about how to navigate the Nigeria market.
To Learn More Visit: http://michaelejekamblog.com/
Challenges in securing land, equity and debt financing challenges, high construction costs and dearth of real estate experience have hampered real estate development in Nigeria, Africa’s largest economy. Michael Chudi Ejekam, real estate expert, aims to help commercial businesses or potential investors navigate the inconsistencies and confusion regarding real estate developments in and around Nigeria.
“There are sizable challenges to overcome but in many ways Nigeria represents the perfect storm for real estate investment; huge population, rapid urbanization and a growing middle-class,” said Michael Chudi Ejekam, former Director of Real Estate at Actis, a London-based $7.5B private equity firm.
Ejekam aims to share expert insights into the rapid development and expansion in Nigeria to include full cycle retail investment and development: site origination, equity investment, planning approvals, development management, tenant leasing, asset management and exits. Visit the new site now:
Michael Chudi Ejekam is a renowned leader in the “retail revolution”. He is a widely quoted retail thought leader, with strong local business and government relationships. Michael Chudi Ejekam served as Director Real Estate for W Africa for Actis, a $7.5B private equity firm- most active retail developer in Sub Saharan Africa (ex SA) for 7+ years. Ejekam originated $700+m in retail projects. Projects include $100m Ikeja City Mall Lagos, $120m Jabi Lake Mall Abuja and Accra Mall. Other projects include Heritage Place, Nigeria’s first green certified commercial building. Originated three upcoming Nigeria malls ranging from $150-185M each totaling over 40,000m2 each, which would be largest in the region. Additional information about Michael Chudi Ejekam can be found here: http://michaelchudiejekamrealestate.com/
For more information about us, please visit https://michaelchudiejekamretail.com/
Michael Chudi Ejekam, commercial real estate expert shares his insights on the recent Wall Street Journal article on the Atlas Partners Longer-Life Private Equity Fund which raised one billion dollars.
Michael Chudi Ejekam, an expert private equity investor, provides insight on the emergence of longer-life private equity funds such as Altas.
In a recent article printed in the Wall Street Journal by Chris Cummings, it was reported that the emergence of longer-life private equity funds such as Altas recently hit a new benchmark by raising one billion dollars. Altas as well as other powerful groups, such as Blackstone and Carlyle, are working on similar longer-life funds. Longer-life PE funds allow managers to hold each investment for far longer than the typical 5-year hold period per investment and typical 10-year total fund life. In the Altas case, each investment can be held up to a whopping 17 years.
The typical “medium life” PE model has proven to be highly successful with attractive risk-adjusted returns, however, Michael Chudi Ejekam believes the model can be optimized, particularly in emerging market like Africa. “Following my several years of PE investing in sub-Saharan Africa, I am convinced that longer term life funds would be an improvement on the PE model for emerging markets such as Nigeria” Michael Chudi Ejekam explains.
“When a PE fund is compelled to exit after a 5-year hold period, though the returns may achieve certainly attractive 25+% gross IRR or 2.5 to 3 times multiple on equity invested, I believe tremendous additional value may be left on the table.” The expert demonstrated his point by saying, “Originating, executing and investment managing attractive investments is a challenging process – why be forced to sell/exit a highly attractive investment after only 5 years, only to be saddled with pressure to find another outstanding deal to originate to start the process over again?”
Of course, some other models have emerged to address the standard PE model challenges. For example, in the case when an arm of a PE fund family invests in greenfield deals seeking “opportunistic” higher returns, and the completed projects are transferred to “core” vehicles of the same fund family which are seeking lower, more stable, longer term returns. “It could be more powerful and efficient to have one fund vehicle simply hold the investment for the longer term”, said Michael Chudi Ejekam. This is especially important in emerging markets, where the deal process is more challenging and deals could take years to originate and close in the first place. There is also increasing investor interest and PE capital raised for Africa for example, therefore deals have become more competitive and could take years to originate and close. “After so much heavy lifting, why sell after only 5 years?” he asked. “I have been involved in a few highly successful full-cycle investments and exits – though the returns were highly rewarding and the possible carried interest/profit distributions exiting, the reality is that excessive additional upside was surrendered to the new owners.”
Charlie Munger, one of Warren Buffet’s longest serving colleagues is quoted as saying: “The ‘know-nothing’ investor should practice diversification, but it is crazy if you are an expert. The goal of investment is to find situations where it is safe not to diversify. If you only put 20% into the opportunity of a lifetime, you are not being rational.”
“Why sell after only 5 years if you are already enmeshed within a great investment?” Michael Chu’di Ejekam continued. “Part of the answer lies in the reality that PE funds need to demonstrate exits/returns to potential Limited Partners (LPs) in order to raise fresh investment funds, and LPs are accustomed to the well-defined and tested cookie-cutter PE “medium life” model.” Of course, there is a desire to exit to realize profits so that carried interest distributions can be made – the perfectly reasonable lifeblood of private equity, from which Ejekam has benefited. Thankfully, there are other acceptable avenues to achieve this objective. According to the finance whiz, longer-life PE funds would be an improvement for for emerging markets such as Africa. He thinks it would be helpful if more potential LPs bought into the concept and support the investment strategies of managers with longer-term views.
Mr. Ejekam offered a few closing remarks. “The most successful entrepreneurs and investors in emerging markets such as Africa, hold longer term views. They do not think in 5-year chunks. They think in terms of decades. This is how to generate outsized returns.”
Michael Chudi Ejekam is an honors graduate of the Wharton School at the University of Pennsylvania, where he earned a BSc in Economics, with a concentration in Finance. His early days were spent on Wall Street, as an investment banker for Merrill Lynch, after which he moved into private real estate investments in New York, and then onto work with Nigeria’s Actis. During his seven-year tenure as their Director Real Estate for West Africa, he became known as a leader in the “retail revolution,” helping to bring multiple million-dollar malls into underserved areas throughout sub-Saharan Africa.
For more information about us, please visit http://michaelejekamblog.com/
Michael Chudi Ejekam, Expert Retail Developer, Comments on Shoprite’s strategy to be successful in Nigeria’s emerging market.
Chudi Ejekam, a recognized authority in retail real estate investment, comments on the resilience of Shoprite’s Nigeria earnings despite foreign exchange controls and a sharp drop in crude oil prices. Shoprite is Nigeria’s largest hypermarket by sales volume.
According to the Bloomberg article, derived from Shoprite Holdings half year financial results for the period ending Dec 31st 2015: “Nigeria showed healthy sales growth despite a slump in the price of crude oil and foreign exchange controls”, Basson said.
The retailer plans to open six Nigerian stores by December, adding to the 16 currently trading, and will also set up a distribution center in Lagos in the next couple of months to improve product availability. The Nigerian government depends on crude oil for over 70% of its revenues and over 90% of its foreign exchange earnings – therefore; the steep drop in crude oil prices had dealt a major blow to the country’s foreign reserves and had put the Naira under great pressure versus the U.S. dollar.
As explains, “as a countermeasure, beginning in June 2015, the Central Bank of Nigeria (CBN) introduced a ban on the ability to access foreign exchange via the official exchange rate to purchase 41 items. The CBN also introduced other measures to essentially ration foreign reserves, making it more difficult for many businesses in Nigeria to secure U.S. Dollars to import key inputs. Many retailers, especially those that were import-dependent were hit hard, and have had challenges securing the Dollars to replenish their stock. Further, the sharp drop in the parallel market Naira exchange rate, meant that certain retailers effective dollar revenues from Nigeria sales would be reduced, with many being compelled to raise their prices materially. Shoprite on the other hand, secures 76% of the items that it sells in Nigeria from local suppliers, of which 38% are manufactured locally. Therefore, Shoprite’s results have been relatively insulated from the foreign exchange shocks and Shoprite avoided material price increases. The resulting earnings, demonstrate that Shoprite’s business model is smart and defensive and well suited for an emerging market like Nigeria. Other retailers should pay close attention…and learn!”
Michael Chudi Ejekam is a renowned leader in the “retail revolution”. He is a widely quoted retail thought leader, with strong local business and government relationships. Michael Chudi Ejekam served as Director Real Estate for W Africa for Actis, a $7.5 B private equity firm- most active retail developer in Sub-Saharan Africa (ex SA) for 7+ years. Ejekam originated $700+M in retail projects. Projects include $100MIkeja City Mall Lagos, $120M Jabi Lake Mall Abuja and Accra Mall. Other projects include Heritage Place, Nigeria’s first green certified commercial building. Originated three upcoming Nigeria malls ranging from $150-185M each totaling over 40,000m2 each, which would be largest in the region.
Michael Chudi Ejekam started his career on Wall Street, as an investment banker at Merrill Lynch in New York.
He graduated with Honors from the Wharton School, University of Pennsylvania, with BSc in Economics with a Concentration in Finance. He received the Howard E Mitchell Award for academic excellence and extracurricular contributions. Learn more about Michael Chudi Ejekam .
For more information about us, please visit
Expert retail developer, Chu’di Ejekam, praises the possibility of Pick N Pay and the future of the retail market in Nigeria and Sub Saharan Africa.
Michael Chudi Ejekam, a recognized authority in retail real estate development, discusses a recent article about the planned entry of a major grocery chain into Nigeria and the problems faced by prior attempts by other retailers.
Ejekam says, “Though some retailers have struggled and exited the Nigeria market, those with the appropriate business models can survive and thrive. In many respects, Nigeria represents the perfect storm for retail as well as real estate investment; Large and growing population of 180 million, burgeoning middle class, rapid urbanization, high growth in household consumption. The same positive trend applies to many markets in Sub-Saharan Africa. Nigeria’s population is forecast to grow to 400 million population by 2050 in a land mass about 30% larger than the US state of Texas.”
Nigeria is the largest retail market in Africa with nearly $200 Billion annual total retail sales forecast for 2016. Only 5% of groceries sales, for example, is via formal retail channels. Kenya, in contrast, has 30% formal penetration.
Ejekam continued to say, “Despite huge demand versus supply imbalance for Nigeria retail; retailers struggle to scale. Retail scalability is limited due to challenges in securing land, high construction costs, difficulty in securing equity and debt financing, high rental rates, the dearth of development expertise, limited pool of tenants with appropriate business models for the country”.
The impact of the underdevelopment of retail is felt by the general population. High food prices is a major problem: Approximately 60% of Nigerian household expenditure is devoted to food consumed at home vs. 6.5% in the USA.
Nigeria is merely at the first step of retail growth (development, leading to the next stage of acceleration and then consolidation thereafter). Despite the short-term challenges in the Nigeria market including currency, retailers entering or operating with the correct business models will reap the rewards for decades to come.
is a renowned leader in the “retail revolution”. He is a widely quoted retail thought leader, with strong local business and government relationships. Michael Chudi Ejekam served as Director Real Estate for W Africa for Actis, a $7.5 Billion private equity firm- most active retail developer in Sub-Saharan Africa (ex SA) for 7+ years. Ejekam originated $700+ Million in retail projects. Projects include $100 Million Ikeja City Mall Lagos, $120 Million Jabi Lake Mall Abuja and Accra Mall. Other projects include Heritage Place, Nigeria’s first green certified commercial building. Originated three upcoming Nigeria malls ranging from $150-185 Million each totaling over 40,000m2 each, which would be largest in the region. Michael Chudi Ejekam started his career on Wall Street, as an investment banker at Merrill Lynch in New York.
He graduated with Honors from the Wharton School, University of Pennsylvania, with BSc in Economics with a Concentration in Finance. He received the Howard E Mitchell Award for academic excellence and extracurricular contributions. Learn more about Michael Chudi Ejekam .
For more information about us, please visit
Michael Chu'di Ejekam is a Commercial Real Estate Developer born in Nigeria. He is a graduate of "The Wharton School of the University of Pennsylvania", a private Ivy League university business school located in Philadelphia.