EBRD provides up to US$ 72 million for expansion programme targeting local sourcing and improved quality standards
Carrefour supermarkets and hypermarkets will strengthen their presence in Georgia and Kazakhstan thanks to an investment by the European Bank for Reconstruction and Development (EBRD).
The EBRD is extending finance of up to US$ 72 million to the Georgian and Kazakh subsidiaries of Majid Al Futtaim, the holder of exclusive rights to the Carrefour franchise in 38 markets across the Middle East, Africa and Central Asia including Georgia and Kazakhstan.
The EBRD financing will be invested by Majid Al Futtaim to open and operate new Carrefour retail stores in Georgia and Kazakhstan.
In Kazakhstan, the EBRD financing will support the first Carrefour store in the country which has opened in February 2016.
The expansion of Carrefour stores in both countries will raise the quality and variety of available products, provide greater choice at more affordable prices, improve hygiene standards, and thereby increase healthy competition in this market segment.
“The presence of modern retailers like Carrefour will also help to create jobs and support the growth of modern retail in these countries. A special emphasis will be put on helping local food producers. A key element in the EBRD-supported project is Majid Al Futtaim’s ongoing commitment to sourcing a high percentage of food supplies from local farms and producers,” said Gilles Mettetal, EBRD Director for Agribusiness.
“We are delighted to be collaborating with the EBRD to expand our Carrefour operations in Georgia and introduce them to Kazakhstan,” said Eric Legros, CEO of Majid Al Futtaim Retail. “Both are developing markets with immense potential for local suppliers, producers and farmers, and even greater demand from residents for a large variety of affordable, high-quality goods. Through this financing facility, we are well positioned to realise this potential and meet this demand.”
Majid Al Futtaim is one of the largest developers and operators of shopping malls, retail and leisure destinations in the Middle East and North Africa.
To date, the EBRD has invested over US$ 7 billion in Kazakhstan and over US$ 2.8 billion in Georgia. In both countries, the EBRD supports the creation of value chains for small and medium-sized enterprises, especially in agriculture.