BUSINESS STRATEGY

An exit from Mozambique could be on the cards for Shoprite group

By our African Marketing Confederation News Team | 2025

After announcing last month that it plans to leave Ghana and Malawi, the retailer warns that its Mozambican presence is also under review.

The giant Shoprite supermarket and retail group, which last month confirmed planned exits from Ghana and Malawi, may also leave Mozambique. 

 

According to a report by Reuters news agency, the potential for another exit was confirmed by the group’s CEO, Pieter Engelbrecht.

Shoprite

Photo: Shoprite

He cited concerns about the viability of the Mozambican market, given Islamist insurgent activity in the north of the country which has stalled a liquefied natural gas project. This would have given the country’s economy a major boost. 

 

Engelbrecht told Reuters that Shoprite’s operations in Mozambique were under review and “on a watch list”, but stopped short of confirming an exit. 

 

Shoprite’s focus is closer to home 

 

South African-based Shoprite has been paring back its once-ambitious pan-African expansion strategy to focus on Southern African countries closer to its home base.  

 

It now has just under 270 stores in seven SADIC member countries. Among these are Angola, Namibia, Botswana and Zambia. 

 

In recent years it has exited Nigeria, Kenya, Democratic Republic of Congo, Uganda and Madagascar. Plus, there are the pending exits from Ghana and Malawi. 

 

Engelbrecht also told Reuters that the company has no further plans to enter any new African markets and, if it did so, it would use a different business model. 

 

In South Africa, Shoprite is hugely successful and is the dominant supermarket player with an ongoing expansion strategy. Among its South African brands are Shoprite, Checkers, Usave (all supermarkets) Medirite (pharmacies), Checkers Liquorshop, Checkers Outdoor, and Petshop Science. Its Sixty60 home delivery grocery service has also become a brand in its own right. 

 

Persistent challenges faced by retailers 

 

Commented Business Insider Africa when Shoprite announced its exit plans in Ghana and Malawi: “Shoprite’s move has revealed the persistent challenges faced by global retailers across several African economies, where currency volatility and shifting economic policies can quickly erode margins. 

 

“The company has encountered numerous obstacles in these regions, including unstable exchange rates, surging inflation, restrictive import regulations, and leases pegged to the US dollar – all of which have weighed on profitability.

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Jason Lottering
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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.