Shoprite Exits Ghana and Malawi as Part of Africa Retreat Strategy

South Africa’s largest grocery retailer, Shoprite Holdings, has confirmed it is exiting Ghana and Malawi, continuing its strategic withdrawal from several African markets.

In a statement released Tuesday, the company announced it had received a binding offer in June to sell its seven stores and one warehouse in Ghana, calling the sale “highly probable.” In Malawi, a sale agreement covering five stores was signed on June 6, pending regulatory approval from the Competition and Fair Trading Commission and the Reserve Bank of Malawi.

The decision aligns with Shoprite’s plan to consolidate operations and focus on its core South African market, which remains its largest and most profitable territory. A report by Reuters highlighted that the move comes amid ongoing challenges including currency instability, inflation, import duties, and dollar-denominated rents, all of which have hampered the company’s profitability in several countries.

Once a dominant force across the continent, Shoprite had expanded aggressively and operated in as many as 15 African countries at its peak. However, in recent years, it has exited Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo, citing similar operational and financial obstacles.

In Ghana, Shoprite has struggled with both strong competition and limited investment, contributing to its gradual decline in market share. The company had shifted capital away from foreign markets to reinforce its South African base.

Despite the exits, Shoprite remains optimistic about its performance. The group projects headline earnings per share to increase between 9.4% and 19.4% for the 52 weeks ending June 29. Sales from continuing operations are also expected to grow by 8.9% to 252.7 billion rand (approximately $14 billion).

However, the announcement had an immediate impact on investor confidence—Shoprite’s shares fell 2.6% on the Johannesburg Stock Exchange as of Tuesday morning.