Shoprite Africa Consolidation Nears Completion, Mozambique Under Review

Shoprite Holdings, South Africa's largest supermarket chain, has largely completed its African operations consolidation. However, Mozambique remains uncertain due to stalled LNG projects and insurgent attacks. CEO Pieter Engelbrecht sees no immediate opportunities for new market entries and has shifted focus to SADC countries. The retailer has exited several countries, including Ghana, Malawi, Nigeria, Kenya, Democratic Republic of Congo, Uganda, and Madagascar.

Shoprite Holdings, South Africa's largest supermarket chain, has largely completed its African operations consolidation, according to the company's CEO, Pieter Engelbrecht. The retailer has expanded extensively across the continent, surpassing rivals such as Pick n Pay and Walmart-owned Massmart to become the leading food retailer in about 15 countries. However, Mozambique remains uncertain due to stalled LNG projects and insurgent attacks.

Engelbrecht told Reuters on Tuesday that while the retailer has completed the consolidation of its operations across Africa, Mozambique is on the watch list. The CEO cited concerns about the gas business and Islamist insurgent attacks in the port city of Palma, which killed many civilians and brought a multibillion-dollar liquefied natural gas project by France's TotalEnergies to a halt [1].

The LNG project, planned to be reignited in June, is currently on hold due to force majeure, which is expected to be lifted soon. TotalEnergies and Mozambique President Daniel Chapo have stated that the project will resume. However, the attacks have brought uncertainty to Mozambique, which is a significant concern for Shoprite [1].

Engelbrecht stated that Africa has become the story of currency devaluations and high inflation, making it difficult for the retailer to enter new markets. He added that if Shoprite changes its strategy and expands outside of South Africa, it will do so with a different model [1].

Shoprite has exited several countries, including Ghana, Malawi, Nigeria, Kenya, Democratic Republic of Congo, Uganda, and Madagascar. The retailer's business in the rest of Africa is now made up of 268 stores across seven countries, all of which are Southern African Development Community members [1].

The French oil and gas company, TotalEnergies, has denied allegations of non-compliance with agreements aimed at promoting the development of the local population in Mozambique. The company stated that it is doing everything possible to promote the development of the local population and has clarified its commitment to continue working with the people of Palma [2].

References:
[1] https://www.reuters.com/world/africa/shoprite-nears-africa-consolidation-finish-line-with-mozambique-under-possible-2025-09-02/
[2] https://clubofmozambique.com/news/mozambique-totalenergies-denies-non-compliance-with-agreements-aim-report-watch-290753/