Shoprite Exits Ghana and Malawi as Part of Africa
South African retail giant Shoprite Holdings has confirmed plans to sell its operations in Ghana and Malawi as part of a strategic shift to consolidate its business within South Africa. The company revealed that it received a binding offer in June for its seven Ghanaian stores and one warehouse, marking the sale as "highly probable." In Malawi, an agreement to offload five stores was signed on June 6, pending regulatory approvals.
This development follows Shoprite's gradual retreat from non-core African markets, having already pulled out of Nigeria, Kenya, Uganda, Madagascar, and the DRC due to operational challenges.
Shoprite's decision is driven by tough economic conditions such as currency instability, high import costs, and dollar-based rent payments in foreign markets. The company also cited limited investment in its international branches, choosing instead to bolster its South African operations—its most profitable market.
Despite the exit, Shoprite remains optimistic, forecasting an 8.9% growth in group sales and a rise of up to 19.4% in headline earnings per share. However, the announcement triggered a 2.6% drop in Shoprite's share price on the Johannesburg Stock Exchange.
