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Shoprite Holdings, Africa’s largest supermarket chain, is gradually winding down operations in more African countries as it shifts attention back to its core market in South Africa. According to analysts on Tuesday, the move is part of a larger strategy by the retail giant to consolidate its business and reduce risks linked to operating in volatile African economies.
The retailer, which once dominated grocery retail across Africa with outlets in about 15 countries, has started pulling out of several markets, including Malawi and Ghana. This follows earlier exits from Kenya, Uganda, the Democratic Republic of Congo (DRC), and Madagascar.
Reports reveal that Shoprite Malawi signed an agreement on June 6, 2025, to sell off its five outlets in the country. The sale is, however, still subject to regulatory approval by the Competition and Fair-Trading Commission as well as the Reserve Bank of Malawi.
Similarly, in Ghana, Shoprite has received what it described as a “binding offer” for its seven operational stores and one warehouse. Sources say the transaction is considered “highly probable” and likely to be finalized once necessary approvals are granted.
These decisions reflect Shoprite’s broader plan to restrict capital investments in non-South African operations due to ongoing economic challenges across many of these countries. In recent years, the retailer has battled with unfavorable foreign exchange rates, harsh inflation, import restrictions, and complex regulatory environments in markets such as Angola and Nigeria.
Though Shoprite once enjoyed a firm lead over competitors like Pick n Pay and Massmart (which is owned by Walmart), its ambitious cross-border expansion has faced increasing setbacks due to fluctuating local currencies and difficulty in repatriating profits.
Now, analysts say Shoprite’s focus is shifting towards strengthening its base in South Africa. The retailer has reportedly increased capital allocation to South African stores while limiting investments in external markets. This comes at a time when many South African companies are reviewing their African strategies due to currency depreciation and rising costs of doing business in several countries across the continent.
Economic experts say the retail environment in Africa is becoming more challenging, especially in countries where inflation is high and governments enforce strict import regulations. These conditions often affect inventory levels, drive up operational costs, and reduce consumer purchasing power.
Despite its strong brand recognition and initial success in Africa, Shoprite’s exit from several countries points to the complex nature of operating in diverse and unpredictable economies. It also highlights the need for businesses to constantly reassess their risk exposure in foreign markets.
For now, Shoprite’s withdrawal from Ghana and Malawi is seen as another sign that the company is prioritizing long-term profitability and operational efficiency over continental dominance.
Some analysts argue that while the exits may shrink the group’s African footprint, it could help improve overall performance and streamline supply chains. Shoprite has also continued to invest heavily in technology and logistics to modernize its South African operations and meet changing consumer needs.
Local observers in Ghana and Malawi say the exits may affect jobs and limit shopping options for residents who have grown used to Shoprite’s product range. However, they believe local retailers or other international brands may step in to fill the gap if the transitions are managed properly.
For Shoprite, the current strategy appears to be less about retreat and more about restructuring. By focusing on markets with stronger currencies, favorable policies, and steady consumer demand, the company is hoping to secure its leadership position in African retail without stretching its resources too thin.
What remains to be seen is whether other pan-African retailers will follow suit or take advantage of Shoprite’s exit to expand their own presence.
