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Africa’s largest supermarket chain, Shoprite Holdings, has announced it is exiting its operations in Ghana and Malawi, continuing a broader strategy to retreat from underperforming African markets and refocus on its core South African business.
In a statement released on Tuesday, Shoprite confirmed that it had received a binding offer in June for its seven stores and one warehouse in Ghana, describing the sale as “highly probable.”
For Malawi, the company revealed that a sale agreement was signed on June 6 covering its five stores in the country. The deal is currently awaiting regulatory approval from Malawi’s Competition and Fair Trading Commission and the Reserve Bank of Malawi.
Consolidation Strategy Amid Regional Challenges
The move comes amid a strategic shift by Shoprite to consolidate and streamline operations after years of aggressive expansion into African markets.
“We are refocusing our efforts where we see the greatest returns, and that continues to be South Africa,” the company said in its statement.
A report by Reuters linked the withdrawal to persistent operational hurdles across the continent, including:
- Currency instability
- High inflation
- Heavy import duties
- Dollar-denominated rents
Shoprite has already exited several countries over the past five years, including Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo.
Tough Terrain in Ghana
In Ghana, Shoprite has struggled to maintain profitability amid rising competition from local retailers and regional supermarket chains, coupled with logistical challenges and limited reinvestment in its foreign outlets. The company had earlier signaled a shift in capital allocation toward reinforcing its South African operations, its largest and most profitable market.
Despite Market Exits, Earnings Look Strong
Despite its pullback from foreign markets, Shoprite remains optimistic about its financial outlook. The group expects:
- Headline earnings per share to increase by 9.4% to 19.4%
- Group sales from continuing operations to rise by 8.9%, reaching 252.7 billion rand (approx. $14 billion) for the 52 weeks ending June 29, 2025
At Its Peak: A Pan-African Giant
Shoprite once operated in over 15 African countries, having outpaced rivals such as Pick n Pay and Walmart-owned Massmart in market penetration. Its current strategy marks a significant retreat from that vision, focusing instead on efficiency and profitability at home.
While the company did not name the buyers for its Ghanaian and Malawian assets, it assured stakeholders that further details would be disclosed upon final regulatory approvals.
