IFC Finances $19.4 Million Anchor Investment in Boxer Retail’s Public Listing in South Africa

Johannesburg, South Africa, December 2, 2024 – International Finance Corporation (IFC) has invested ZAR 350 million ($19.4 million) as a cornerstone investor in leading discount retailer Boxer Retail Limited’s Initial Public Offering (IPO) on the Johannesburg Stock Exchange (JSE) in South Africa.

This strategic investment is expected to significantly contribute to job creation, particularly for low-skilled and unskilled youth. It will also enhance food security for low- to middle-income populations in underserved areas of South Africa.

IFC’s support of Boxer encouraged further participation from institutional and retail investors, leading the IPO to raise ZAR 8.5 billion (USD 472 million), making it the largest IPO on the JSE since 2018.

The IPO will support Boxer’s growth plans: the company aims to double its store footprint in the next six to seven years by adding 60 to 70 new stores per year in the medium-term. These new locations will include underserved rural areas and urban townships. This will enable Boxer to expand its services to low- and middle-income populations in underserved areas of South Africa.

More broadly, the IPO also supports the recapitalization plan of one of South Africa’s iconic homegrown retail brands, Pick n Pay Stores Limited, which wholly owned Boxer before its listing. Through the IPO, Pick n Pay has raised funding which will be used to repay part of existing debt. 

“This listing marks a significant milestone for our business, providing us with access to local and international capital markets to support our growth ambitions,” said Marek Masojada, Boxer CEO. “We are very proud of our compelling value proposition for price-conscious customers that offers unbeatable value and a diversified range in a welcoming market-style atmosphere in our stores. Our deep understanding of our customer needs has been key to our strong performance, and we are excited to expand Boxer’s reach by opening more stores to serve more communities across the country.”

“We are thrilled to finalize this pivotal investment that not only aligns with South Africa’s national priorities of inclusive growth and job creation but also strengthens the backbone of South Africa's economy,” said Cláudia Conceição, IFC's Regional Director for Southern Africa. “Boxer's expansion is expected to create approximately 20,000 new jobs over the next several years, fostering a brighter future for many.”

South Africa boasts a substantial domestic market for grocery retailers, with around 61 million people living in 18.5 million households. However, many low- to middle-income populations in urban townships, peri-urban areas, and rural regions remain underserved regarding access to modern retail options.

As of September 2024, IFC has invested $3.8 billion in South Africa’s private sector and has an advisory portfolio worth $25.1 million spanning the finance, climate, construction, real-estate, electric power and utilities sectors in South Africa.

The investment in Boxer aligns with the World Bank Group’s strategic focus in South Africa, which supports the development of key value chains that enhance food security, promote job creation, and foster inclusive growth, particularly among historically disadvantaged communities.