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South Africa’s largest grocery retailer, Shoprite Holdings, has confirmed plans to sell its operations in Ghana and Malawi, marking another phase in its gradual retreat from several African markets.
In a statement issued on Tuesday, the company revealed it had received a binding offer in June for its seven stores and one warehouse in Ghana, describing the sale as “highly probable.” In Malawi, Shoprite signed an agreement on June 6 to offload five stores, with the deal pending approvals from the Competition and Fair Trading Commission and the Reserve Bank of Malawi.
According to Reuters, the move aligns with Shoprite’s strategy to consolidate operations and strengthen its dominance in South Africa—its largest and most profitable market.
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Shoprite’s earlier expansion drive saw it become Africa’s biggest supermarket chain, operating in about 15 countries at its peak, outpacing rivals such as Pick n Pay and Walmart-owned Massmart. But persistent hurdles—including currency volatility, high inflation, import duties, and dollar-denominated rents—have made business in certain countries unsustainable. The retailer has already exited Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo.
In Ghana, the retailer has faced stiff competition from both local and regional supermarket chains, while operational and investment constraints further limited growth. Shoprite has increasingly channelled resources back into its home market, where it continues to post robust results.
Despite the latest exits, the group remains optimistic about its performance in continuing operations, projecting headline earnings per share to grow between 9.4% and 19.4% for the 52 weeks ending June 29. Group sales are expected to rise 8.9% to 252.7 billion rand (about $14 billion).
Following the announcement, Shoprite’s shares dipped 2.6% on the Johannesburg Stock Exchange by Tuesday morning.
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