After Nigeria Exit, Shoprite Offloads Ghana, Malawi Operations
Shoprite Holdings Ltd, South Africa’s largest grocery retailer, has announced plans to divest its operations in Ghana and Malawi, further advancing its strategy to consolidate its African footprint and focus on its core South African market.
The move follows earlier exits from several African countries, including Nigeria, once one of its most promising expansion territories.
Shoprite said it had reached agreements to sell its five-store operation in Malawi and had received a binding offer for its seven trading outlets and one warehouse in Ghana.
The Malawi transaction, signed on June 6, is subject to regulatory approvals, including from the Competition and Fair Trading Commission and the Reserve Bank of Malawi.
The retailer described the sale of its Ghanaian assets as “highly probable,” having already secured a serious bid from an undisclosed buyer.
These developments are the latest in a series of strategic pullbacks from underperforming or volatile markets on the continent.
Shoprite had previously exited Nigeria, Kenya, the Democratic Republic of Congo, Uganda, and Madagascar, citing challenges including currency depreciation, double-digit inflation, high import duties, and dollar-denominated rents that squeezed profitability.
Despite aggressive expansion over the past two decades that saw Shoprite operate in up to 15 African countries and eclipse rivals like Pick n Pay and Massmart, the group has faced increasing headwinds in many of its non-South African markets.
As a result, the company has adopted a more conservative stance, limiting capital allocation to supermarkets outside South Africa.
In its latest trading update, Shoprite said it expects headline earnings per share (HEPS) from continuing operations to rise between 9.4 per cent and 19.4 per cent for the 52 weeks ended June 29, 2025, compared to a restated 11.85 rand per share in the previous year.
It also anticipates group sales from continuing operations to grow by 8.9 per cent, reaching 252.7 billion rand (approximately $14bn).
The company has consistently emphasised that its focus remains on growing its South African core, which continues to expand market share in a competitive but more stable retail environment.
Shoprite’s exit from Nigeria in 2021 marked a significant shift in its pan-African strategy, as the country was once considered a cornerstone of its international growth.
Since then, the retailer has worked to optimise operations, reduce exposure to high-risk regions, and improve return on capital by investing more heavily in its domestic operations.
Analysts say the Ghana and Malawi divestments reaffirm the group’s intent to protect margins and concentrate on profitability rather than geographic spread.
After Nigeria Exit, Shoprite Offloads Ghana, Malawi Operations is first published on The Whistler Newspaper
