Shoprite to sell stores in Ghana, Malawi to focus on South African market

Shoprite Holdings, Africa’s largest food retailer, says it is selling its operations in Ghana and Malawi.

According to Reuters on Tuesday, the move marks another step towards the consolidation of Shoprite’s activities across Africa to focus more on its core market in South Africa.

The supermarket retailer had expanded extensively in Africa, surpassing rivals such as Pick n Pay and Walmart-owned Massmart to become the continent’s leading food retailer in about 15 countries.

But its ventures in markets such as Angola and Nigeria were hindered by currency volatility, high inflation, and import duties, according to the publication.

Reuters said Shoprite in Malawi signed an agreement on June 6 to sell five stores, subject to approval from the Competition and Fair Trading Commission and the Reserve Bank of Malawi.

“In Ghana, the group received a binding offer in June for seven trading stores and one warehouse. The sale is deemed highly probable,” the report said.

Reuters added that the company had also restricted capital allocations to its supermarkets outside South Africa.

The planned sales add to Shoprite’s earlier exits from Kenya, the Democratic Republic of Congo, Uganda and Madagascar.