Shoprite Holdings, South Africa’s largest grocery retailer, has officially exited Ghana and Malawi, marking its seventh withdrawal from African markets. This strategic move underscores the company’s renewed focus on strengthening its core operations in South Africa after years of challenging trading conditions across the continent.
Shoprite has agreed to sell its five stores in Malawi to Karson Investment Trust, with the transaction signed on June 6, pending regulatory approvals from the Competition and Fair Trading Commission and the Reserve Bank of Malawi. In Ghana, the retailer has received a binding offer for its seven stores and a distribution warehouse, describing the sale as “highly probable” following a serious bid from an undisclosed buyer.
The exits from Ghana and Malawi follow Shoprite’s earlier withdrawals from Nigeria, Kenya, the Democratic Republic of Congo, Uganda, and Madagascar. These moves reflect the company’s strategic reset after years of losses and operational difficulties in non-core markets.
Shoprite’s initial expansion into Africa was driven by optimism about the continent’s growth potential. However, the reality proved challenging, with headwinds such as:
- Currency depreciation
- High inflation rates
- Dollar-based leases and import duties, which inflated operating costs
These factors eroded profitability and made sustaining operations in certain markets increasingly difficult.
Shoprite is not alone in scaling back its African ambitions. Other South African retailers have faced similar struggles:
- Massmart (majority-owned by Walmart) exited East and West Africa, closing Game stores in Kenya, Uganda, Tanzania, Nigeria, and Ghana.
- Builders Warehouse shut its only store in Nairobi after less than three years.
- Pick n Pay withdrew from Nigeria in October 2024, selling its stake in a joint venture.
- Tiger Brands divested from its Kenyan venture, Haco Industries, citing misalignment with its core brand-ownership model.
These exits highlight a broader shift from aggressive pan-African expansion to a pragmatic, risk-managed approach, focusing on markets where companies can maintain tighter control and profitability.
Shoprite remains committed to growing its South African operations, which continue to deliver strong performance. In its latest trading update, the retailer expects:
- Headline Earnings Per Share (HEPS) from continuing operations to rise between 9.4% and 19.4% for the 52 weeks ended 29 June 2025, compared to R11.85 per share in the previous year.
- Group sales from continuing operations to grow by 8.9%, reaching R252.7 billion (approximately USD 14 billion).
Analysts note that the divestments in Ghana and Malawi reaffirm Shoprite’s intent to protect margins and prioritize profitability over geographic expansion. Persistent challenges such as volatile exchange rates, high inflation, and complex regulatory environments have made it clear that the grass is no longer greener outside South Africa.
