Uqalo, a South-African private equity fund, has bought Sh404m($4m) worth of shares in Kenyan fast food chain Big Square for an undisclosed stake.

Uqalo said the investment will expand its footprint from the current nine stores to 30 over the next four years.

“We are delighted to support the team at Big Square in their expansion and the development of their offering to serve an ever increasing number of customers,” commented Sebastian McKinlay, Uqalo’s East African representative.

Sources say a Nigeria deal is in on the cards for Uqalo which has publicly showed interest in investing in Africa’s largest economy in the past. The firm is primarily funded by Hong Kong-based supply chain and logistics conglomerate Fung Group.

“Uqalo targets investments located in Kenya, Ethiopia and Nigeria and is only waiting for the perfect time to swoop,” the source said.

It currently owns a 5% stake in business-to-business food supplier Twiga Foods.

The anticipated expansion will see Big Square take the fight for customers to the likes of Burger King, Kentucky Fried Chicken (KFC) who have increased their presence locally in recent years.

Global brands have been expanding aggressively in Africa owing to an expanding middle class population.

Higher global oil prices and local production has helped the economy turn the corner on its first recession in a quarter of a century. However, fragile growth that is less than population growth means consumer incomes remain squeezed.

Source: Business Day