South African retailer Pick n Pay has signed a franchise agreement with Retail Masters to enter Mozambique.

The deal, announced on Monday (8 November), will mean that the first store will open in March in Maputo.

"We have signed a master franchise agreement with Retail Masters for Mozambique which will provide us with the essential benefit of expert insights into the local market," said Pick n Pay enterprises division head, Dallas Langman.

The Maputo store will be approximately 3,000 square metres and the company plans to open a further three stores before the end of 2011. The first four stores will all be located in the greater Maputo district.

The company plans to "ensure that local farmers and suppliers are supported to stimulate and assist economic growth in Mozambique", added Langman.

Pick n Pay said the expansion into Mozambique follows its entry into Zambia in July.