By agency report
South Africa’s biggest grocery retailer Shoprite Holdings says it is closing its operations in Nigeria, Ghana, Malawi, Kenya, DRCongo, Uganda, Madagascar and about a dozen other countries across 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 forays into markets, including Angola and Nigeria, were marred by currency volatility, double-digit inflation, high import duties and dollar-based rentals.
In Malawi, the company says it has signed an agreement on to dispose of five trading stores, pending certain conditions, including approval from the Competition and Fair Trading Commission as well as the Reserve Bank of Malawi.
It said that in Ghana, the group received a binding offer in June for seven trading stores and one warehouse. The sale is deemed highly probable.
Shoprite had earlier restricted capital allocations to its supermarkets outside South Africa.
The development marks another step towards consolidation of its activities across Africa to focus more on its home market.
