Shoprite Exits Ghana and Malawi to Focus on Core South African Market

Shoprite Holdings, South Africa’s largest supermarket chain, has confirmed its exit from Ghana and Malawi, marking its seventh withdrawal from African markets. The decision reflects the retailer’s renewed focus on consolidating and expanding its operations in South Africa after years of challenging trading conditions across the continent.

The company has agreed to sell its five stores in Malawi to Karson Investment Trust, with the transaction signed on 6 June, subject to regulatory approval from the Competition and Fair Trading Commission and the Reserve Bank of Malawi. In Ghana, Shoprite has received a binding offer for its seven stores and a distribution warehouse. The sale is described as “highly probable” following a serious bid from an undisclosed buyer.

These latest exits follow previous withdrawals from Nigeria, Kenya, the Democratic Republic of Congo, Uganda and Madagascar, signalling a strategic reset after prolonged losses and operational difficulties in non-core markets.

Shoprite’s original push into African markets was fuelled by optimism over the continent’s economic growth. However, sustained headwinds – including currency depreciation, high inflation, and dollar-based leases and import duties that increased operating costs – eroded profitability and made it harder to maintain operations in certain countries.

Other South African retailers have faced similar setbacks. Massmart, majority-owned by Walmart, closed Game stores in Kenya, Uganda, Tanzania, Nigeria and Ghana. Builders Warehouse shut its only Nairobi outlet after less than three years. Pick n Pay exited Nigeria in October 2024, selling its stake in a joint venture, while Tiger Brands divested from its Kenyan business, Haco Industries, citing a lack of alignment with its core brand-ownership model.

The trend highlights a broader industry shift from aggressive pan-African expansion towards a risk-managed approach focused on markets with stronger profit potential and operational control.

Despite the retrenchment, Shoprite remains committed to growth in South Africa, where it continues to perform strongly. In its latest trading update, the retailer forecasts headline earnings per share (HEPS) from continuing operations to rise by between 9.4% and 19.4% for the 52 weeks ended 29 June 2025, compared with R11.85 per share in the prior year. Group sales from continuing operations are expected to increase by 8.9% to R252.7 billion (approximately USD 14 billion).

Industry analysts say the divestments in Ghana and Malawi confirm Shoprite’s strategy to safeguard margins and prioritise profitability over geographic spread. Persistent challenges such as volatile exchange rates, inflationary pressures and complex regulatory environments have made clear that growth opportunities outside South Africa are no longer as attractive as once believed.