Shoprite to Exit Ghana and Malawi Sharpening Focus on Core South African Market
South Africa’s largest grocery retailer, Shoprite Holdings, is set to divest its operations in Ghana and Malawi as part of ongoing efforts to consolidate its African footprint and prioritise its domestic market, according to a report by Reuters.
The company disclosed that Shoprite Malawi signed an agreement on June 6 to dispose of five trading stores, subject to regulatory approvals from the Competition and Fair Trading Commission and the Reserve Bank of Malawi.
In Ghana, Shoprite said it received a binding offer in June for seven trading stores and one warehouse, adding that the sale is considered “highly probable.”
The latest move adds Ghana and Malawi to the list of African countries Shoprite has exited in recent years, following withdrawals from Nigeria, Kenya, the Democratic Republic of Congo, Uganda, and Madagascar. The retailer had earlier reduced capital allocation to its non-South African operations amid challenging macroeconomic conditions across the continent.
Shoprite’s expansion across Africa had seen it outperform rivals including Pick n Pay and Walmart-owned Massmart to become the continent’s top food retailer. However, adverse market dynamics in several countries — including currency depreciation, high import duties, double-digit inflation, and dollar-denominated rents — undermined profitability and forced the group to reassess its international strategy.
At 07:53 GMT on Tuesday, Shoprite’s shares were down by 2.60% on the Johannesburg Stock Exchange following the announcement.
Despite the strategic pullback, the retailer maintains a positive earnings outlook. For the 52 weeks ended June 29, 2025, Shoprite expects headline earnings per share (HEPS) from continuing operations to rise between 9.4% and 19.4%, compared to a restated 11.85 rand in the prior period.
Group sales from continuing operations are projected to increase by 8.9% to 252.7 billion rand ($14 billion), reflecting continued resilience in its core South African market.
