Shoprite departs from Ghana and Malawi, ending operations in these countries
In a strategic move, South Africa's largest supermarket chain, Shoprite, is leaving Ghana and Malawi as part of its ongoing retreat from underperforming African markets. This decision follows Shoprite's exit from seven African countries, the last being the Democratic Republic of Congo in 2022.
The implications for the grocery markets in Ghana and Malawi are significant. Shoprite's departure has sparked mixed reactions among Ghanaian consumers, with some optimistic about boosting local businesses and domestic products, and others concerned about job losses, potential price increases, and disruptions in supply chains.
In Ghana, the sale's buyer identity is crucial, as acquisition by an already dominant player could significantly increase market concentration, potentially reducing competition and consumer choice. Ghana currently lacks a formal competition law enforcement in retail, so government scrutiny is limited.
The Malawian Competition and Fair Trading Commission is inviting public comments on the deal, signaling an effort to assess the transaction’s impact on market competition, consumer welfare, and economic growth in the retail sector.
Meanwhile, Shoprite is focusing squarely on its home base, South Africa, and is expanding store count, scaling delivery with Sixty60, and growing in pet, health, and outdoor retail.
Flexible Financing for Clean Energy Startups
Elsewhere on the continent, Nithio is offering flexible financing to clean energy startups in Kenya and Nigeria. The eligibility includes solar home system providers, clean cooking ventures, and businesses selling solar appliances like fridges or mills. This move could significantly boost the clean energy sector in these countries.
Digital Payments Transformation in Tanzania
In Tanzania, the central bank is actively shaping payment flows through a central bank-led approach to digital payments. The country's real-time digital payments network, TIPS, is growing rapidly, processing TSh29.9 trillion ($11.6 billion) in transactions by December 2024, up from TSh12.5 trillion ($4.9 billion) in 2023. TIPS enables instant money transfers between banks, mobile wallets, and other financial institutions.
Tanzania has also upgraded its Financial Services Registry (FSR) with geospatial mapping tools to identify access gaps in financial services.
AI Startup Programme in West Africa
MEST Africa has opened applications for its 2026 AI Startup Programme, offering training and incubation to West African software developers aged 21-30. This programme could foster the growth of AI-focused startups in the region.
Shoprite's Exit Concludes Decades of Operations
Shoprite's exit from Ghana concludes over two decades of operations there, while its exit from Malawi ends 25 years of presence. These moves are driven by persistent economic challenges across the continent, such as currency fluctuations, high inflation, steep import tariffs, and dollar-denominated rents, which have made sustaining operations in these markets difficult.
Remembering Leon Kiptum
Unfortunately, we also bid farewell to Leon Kiptum, a former executive at Flutterwave, who passed away on August 3, 2022, after a long battle with cancer. Kiptum was a strong advocate for people-first leadership and pushed for better dialogue between startups and regulators.
The JSE Goes Sleepless?
In other news, the South African bourse, Johannesburg Stock Exchange (JSE), is considering making its market always open for trading. If the JSE proceeds, it would be the first traditional exchange to go fully sleepless, as no major stock exchange currently runs 24/7.
This article provides a snapshot of the dynamic African business landscape, with shifts in retail, clean energy, digital payments, and AI startups. As these sectors continue to evolve, we can expect to see more exciting developments in the near future.
- The departure of Shoprite from Ghana and Malawi might encourage local innovation in the grocery industry, as consumers look to support domestic products.
- Venture capital firms focusing on fintech could find promising opportunities in Africa, with startups scaling delivery services and expanding into new retail sectors.
- Crypto investors may seek early-stage ventures in clean energy startups, as companies in Kenya and Nigeria receive flexible financing for solar and clean cooking projects.
- Logistics providers might collaborate with new retail players in Ghana to address potential challenges caused by Shoprite's departure, such as job losses, price increases, and supply chain disruptions.
- Mobile payments solutions might see growth in Tanzania, as the central bank continues to promote digital payments through a central bank-led approach, even as the Financial Services Registry identifies access gaps in financial services in the country.
- West African software developers can tap into the AI Startup Programme offered by MEST Africa, eyeing the potential for startup growth in the region and supporting a stronger connection between AI-focused businesses and the regional tech ecosystem.
