Shoprite Holdings Ltd. will divest its operations in Ghana and Malawi, extending a multiyear retreat from African markets outside South Africa as the continent’s largest food retailer tightens its focus on more stable and profitable operations at home.
The retailer disclosed it had entered into an agreement on June 6 to sell its five-store operation in Malawi, subject to regulatory approvals from the country’s Competition and Fair Trading Commission and central bank. In Ghana, Shoprite said it received a binding offer in June for seven stores and one warehouse, adding that the transaction is now “highly probable.”
The disposals mark the latest chapter in Shoprite’s withdrawal from frontier African economies, following earlier exits from Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo. The group began unwinding its regional ambitions in 2020, citing currency depreciation, high import tariffs, and unsustainable operating costs, including U.S. dollar-linked rents in low-earning local currency environments.
The strategy reversal ends what was once a rapid pan-African expansion that had positioned Shoprite well ahead of regional peers, including Pick n Pay and Massmart, the Walmart-owned South African retailer. But sustained macroeconomic instability across much of sub-Saharan Africa has prompted the company to reduce its exposure to foreign risk and concentrate capital in South Africa, which now accounts for the bulk of group revenue and profits.
Shoprite shares fell as much as 2.6% on the Johannesburg Stock Exchange on Tuesday morning following confirmation of the latest exits.
Despite the pullback, the company maintains a strong financial outlook. For the 52 weeks ending June 29, 2025, headline earnings per share from continuing operations are expected to rise between 9.4% and 19.4%, from a restated 11.85 rand in the prior year.
Group sales from continuing operations are projected to grow by 8.9% to 252.7 billion rand ($14 billion), supported by consistent performance in its South African supermarket business.
The company did not name the prospective buyers in either Ghana or Malawi.
