On Monday, 03 August 2020, Shoprite Holdings Limited, the South African supermarket chain operator announced, that “following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate the formal process to consider the potential sale of all or a majority stake in Retail Supermarkets Nigeria Limited”.
Retail Supermarkets Nigeria Limited, which trades in Nigeria as Shoprite, operates 25 outlets in 11 states and the FCT and is responsible for the direct and indirect employment of about 4,500 people, majority of whom are Nigerians. The announcement by Shoprite Holdings Limited does not imply the closure of Shoprite stores in Nigeria. Although details have not been provided, we understand that the structure of the planned transaction may provide an opportunity for Nigerian investors to take up a controlling interest in the business.
Shoprite’s outlets across Nigeria provide market access to over 500 Nigerian farmers and small businesses, helping to get local produce and products to millions of Nigerian consumers. NIPC considers Shoprite to be a strategic investment in Nigeria. We believe that more investments in retail distribution and related sectors, by domestic and foreign investors, are required in Nigeria to deepen the market access of local products and better connect Nigerian businesses to national and regional value chains. The retail market remains a material growth driver in the Nigerian economy, accounting for 16% of GDP and presenting opportunities for investors in retail stores, e-commerce, real estate and several promising career paths for Nigerians.
NIPC remains committed to its mandate of encouraging, promoting and coordinating investments in Nigeria, and reaffirms the Federal Government’s commitment to progressively improving the business environment for both domestic and foreign investors.
05 August 2020