South African retail heavyweight Shoprite Holdings has announced its decision to exit Ghana and Malawi, continuing a broader pullback from several African markets amid persistent operational and financial challenges.
This marks the sixth and seventh exits by the company outside its home country in just four years, following similar withdrawals from Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo.
According to Reuters, Shoprite Malawi has already entered into a sale agreement for its five trading outlets, pending regulatory approval from Malawi’s Competition and Fair Trading Commission and the Reserve Bank of Malawi.
In Ghana, Shoprite reported receiving a binding offer for seven stores and a distribution center, describing the sale as “highly probable.”
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The decision underscores the difficulties multinational retailers often encounter across African markets, particularly due to exchange rate volatility, inflation, restrictive trade policies, and leases pegged to the US dollar, all of which have significantly impacted Shoprite’s margins.
Both the Ghanaian and Malawian operations have now been designated as “discontinued” in Shoprite’s financial reports in accordance with IFRS 5 accounting standards.
The market responded swiftly to the news—Shoprite’s shares dropped 2.6% on the Johannesburg Stock Exchange (JSE) by 07:53 GMT, reflecting investor concern over the retailer’s shrinking continental footprint.
Shoprite’s latest retreat is part of a broader realignment strategy. While the company continues to scale back its regional presence, it has been expanding aggressively in South Africa.
Over the past year, it has launched hundreds of new domestic outlets and significantly grown its Sixty60 e-commerce delivery service, while also venturing into new retail segments like healthcare, pet supplies, and outdoor products.
The contrast between its African retreat and its domestic growth highlights Shoprite’s focus on consolidating in more predictable and profitable markets, as economic uncertainties and regulatory hurdles continue to plague several African economies.
image credit: Prime Business Africa
