Shoprite exit: South Africa’s gain, Nigeria’s loss
By John Eche
The immediate 11 percent jump in the equities cost of shares of the trading concern, Shoprite at the Johannesburg Stock Exchange, JSE following the announcement of its exit plans from Nigeria is being seen by observers as a case of South Africa’s gain and Nigeria’s loss, The Difference can report.
The operations of the company in Africa’s largest economy by GDP size had been affected by declining sales and profitability and sources say that the proposed disengagement would involve a sell-out of its business to a local player.
More details of the transaction suggest that the new owners of the business would keep the name for a couple of months.
However, a correspondence from the Nigerian office of Shoprite has debunked the divestment report, saying that all that was indeed going on was the adjustment of some expansion initiative that would bring in some more local players on board the continental chain.
Observers say that it may be necessary to wait a while to be able to get a clearer picture of what exactly is going on at Shoprite Nigeria.