South Africa’s largest retailer, Shoprite Holdings, said on Tuesday it is selling its operations in Ghana and Malawi, marking another step in the consolidation of its activities across Africa to focus more on its domestic market.
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The supermarket group, which had significantly expanded across Africa — surpassing rivals such as Pick n Pay and Walmart-owned Massmart to become the continent’s leading food retailer in about fifteen countries — saw its ventures in certain markets, notably Angola and Nigeria, hampered by currency volatility, double-digit inflation, high import duties, and dollar-denominated rents.
On Tuesday, the company said that Shoprite Malawi signed an agreement on June 6 to sell five operating stores, subject to certain conditions, including approval from the Competition and Fair Trading Commission and the Reserve Bank of Malawi.
In Ghana, the group received a binding offer in June for the takeover of seven stores and one warehouse. Shoprite said the sale is considered highly probable.
These planned sales follow exits from Nigeria, Kenya, the Democratic Republic of Congo, Uganda, and Madagascar. Shoprite had also reduced capital allocations to its supermarkets outside South Africa.
