South Africa’s largest supermarket chain, Shoprite Holdings, has confirmed its decision to divest from its operations in Ghana and Malawi, marking another chapter in its gradual retreat from several African markets.
In a statement released Tuesday, the retail group announced that it had received a binding offer in June for its Ghanaian assets, which include seven retail outlets and a distribution warehouse. The company described the sale as “highly probable,” signaling a near-certain departure from the West African nation.
In Malawi, Shoprite signed an agreement on June 6 to transfer ownership of five stores, pending regulatory clearance from the Competition and Fair Trading Commission and the Reserve Bank of Malawi.
The move is part of Shoprite’s broader strategy to streamline its operations and concentrate on its domestic market, which remains its most profitable. According to a report by Reuters, the company aims to consolidate resources and reduce exposure to volatile foreign markets.
Shoprite had previously led an aggressive expansion across Africa, surpassing competitors like Pick n Pay and Walmart-owned Massmart to become the continent’s top grocery retailer. At its peak, the company operated in roughly 15 countries.
However, persistent challenges—including currency fluctuations, inflationary pressures, high import tariffs, and leases pegged to the U.S. dollar—have made operations in several regions financially unsustainable. The retailer has already exited Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo.
In Ghana, Shoprite faced mounting competition from regional and domestic retailers, coupled with logistical and financial constraints. The company had scaled back investment in its international branches, choosing instead to channel capital into strengthening its South African footprint.
Despite the exits, Shoprite remains optimistic about its remaining operations. The group projects headline earnings per share to increase by 9.4% to 19.4% for the fiscal year ending June 29, 2025. Sales from continuing operations are expected to rise by 8.9%, reaching 252.7 billion rand (approximately $14 billion).
Following the announcement, Shoprite’s shares fell by 2.6% on the Johannesburg Stock Exchange as investors responded to the company’s shrinking international presence.
Shoprite first entered the Ghanaian market in 2003. Its exit marks the end of over two decades of operations in the country—a significant moment in the retailer’s evolving pan-African strategy
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