Shoprite exits Malawi and Ghana amid economic challenges

By Mark Ogagan

Olaopa Seeks Review of Civil Service Disciplinary Control

Commonwealth Nations Unite To Unlock Economic Potential Amidst Global Challenges

South Africa’s biggest grocery retailer, Shoprite, is set to shut down its Malawi operations after 25 years of operations .

The company will do the same in Ghana as part of its plans to exit several African countries, including Nigeria, Uganda, and the Democratic Republic of Congo, and focus on its home market.

Shoprite group once had ambitions to dominate food retail across the continent, and it expanded into about 15 countries, beating rivals such as Pick n Pay and Walmart-owned Massmart to become Africa’s largest supermarket operator.

However, many of these moves did not work out as planned as Shoprite’s stores outside South Africa faced serious challenges.

These challenges include weak currencies, high inflation, expensive import duties, and rent charged in US dollars. These factors made it difficult to operate profitably.

In Malawi, Shoprite signed a deal to sell its five stores, and last month the country’s Competition and Fair-Trading Commission approved the transaction.

However, the approval came with conditions. The buyer, Karson, must keep workers who choose to stay, pay proper benefits to those who leave, and report back every three months for two years to prove it is following the rules.

Karson will rename the stores as “Shopwise Trading Limited” and continue selling groceries, but there are doubts about whether it can keep jobs safe and run the stores effectively.

In Ghana, Shoprite has also agreed to sell seven stores and one warehouse. The group described the sale as highly probable, which means another exit is almost certain.

These moves follow earlier withdrawals from Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo.

The situation in South Africa is the complete opposite, as the group is expanding strongly in its domestic market.

In the year ending June 2025, Shoprite reported sales of more than R250 billion, an increase of R20.6 billion from the previous year.

Its core South African supermarkets, which include Shoprite and Usave, grew turnover by 5.9%, or R6.5 billion.

Checkers, which has been repositioned as a more premium but still affordable option, performed even better, with sales up 13.8%, adding R11.6 billion to the group’s revenues.