Harare, Zimbabwe - South African consumer retail giant, Shoprite, said Tuesday it would go ahead with plans to spend R167 million to snap up a rival in Zimbabwe in spite of political and economic instability in the country.

The company has been holding lengthy talks with OK Zimbabwe, the country's largest consumer retailer, for a controlling stake, amid worries over the security of its investment given Zimbabwe's political and economic instability.

The country has formed a coalition government, including the opposition, to pick up the pieces from 10 years of a devastating fight for power.

In spite of this, Zimbabwe is politically and economically fragile, forcing many potential foreign investors to wait on the fence for now.

However, Shoprite said it had brushed aside the worries and would invest R167 million to acquire a majority stake in OK Zimbabwe.

It said it believed the economies of southern African countries were integrating, opening up vast opportunities for savvy investors.

"We are like good Africans. We believe the whole of southern Africa will enter a new era over the next five to 10 years," the company said.

The company already has a foothold in Zimbabwe, running one retail shop in the country's second city of Bulawayo.

If the deal goes through, Shoprite will become the country's biggest consumer retail.

It did not say what stake it was acquiring in OK Zimbabwe.

By Staff reporter and agencies