South Africa’s leading grocery chain, Shoprite Holdings (SHPJ.J), has announced its planned exit from Ghana and Malawi as part of a broader strategy to streamline its operations across the continent and concentrate on its core South African market, Reuters has reported.
The retail giant, which had previously dominated the African supermarket space with a presence in over 15 countries, has over the years found it increasingly difficult to navigate the economic instability in many of these markets. Its withdrawal from Ghana and Malawi follows earlier exits from Nigeria, Kenya, Uganda, Democratic Republic of Congo, and Madagascar.
According to Shoprite’s statement on Tuesday:
- In Malawi, Shoprite signed an agreement on June 6 to sell five trading stores, pending regulatory approvals from the Competition and Fair Trading Commission and the Reserve Bank of Malawi.
- In Ghana, the group received a binding offer in June 2025 for seven trading stores and one warehouse. Shoprite says the sale is “highly probable,” pending final conditions.
These transactions are seen as a significant step in the retailer’s restructuring efforts and a continuation of its plan to restrict capital allocation to non-South African operations, which had been announced years prior.
Despite its dominance across the continent, Shoprite’s expansion into other African countries has often faced setbacks, including:
- Currency volatility
- Double-digit inflation
- High import duties
- Dollar-based rental costs
Markets like Angola and Nigeria proved especially difficult due to unstable currencies and logistical challenges, making profitability a continuous struggle despite growing consumer demand.
While the company’s share price dipped by 2.60% in early trading following the announcement, Shoprite maintains a positive financial outlook:
- Headline earnings per share from continuing operations are expected to increase by 9.4% to 19.4% for the 52 weeks ended June 29, 2025.
- Group sales from continuing operations are projected to grow by 8.9%, reaching 252.7 billion rand ($14 billion).
These gains signal strong performance in Shoprite’s core South African operations, validating its decision to consolidate and refocus after a turbulent period of expansion.
With its planned exits from Ghana and Malawi, Shoprite is entering a new phase of strategic transformation aimed at preserving profitability and operational efficiency. The company’s leadership has emphasized their intent to maximize returns from continuing operations while minimizing exposure to volatile foreign markets.
While its departure will leave a void in Ghana and Malawi’s retail space, it may also present new opportunities for local and regional players to expand their footprint.
