Reports indicate that South African retailer Shoprite has chosen to close its locations in the Democratic Republic of the Congo.
The decision comes after operations were shut down in Nigeria, Kenya, Uganda, and Madagascar as the group sought to concentrate more on its South African operations, Shoprite said.
“The decision to close operations in the Democratic Republic of Congo during this period is regrettable but is part of the group’s long-term strategy,” its statement dated November 21 said.
The largest retailer in South Africa by market capitalisation began operations in the Congo in 2012 as part of an ambitious drive into the continent’s frontier retail markets.
The three Shoprite locations in the Congo were among the 2,800 locations the company has in 15 African nations.
After selling its Nigerian operation last year, the company said that, after considering its long-term possibilities in Africa, it was switching from an ownership to a franchise business model.
It claimed that currency instability, double-digit inflation, high import taxes, and dollar-based rentals had hurt its expansion plans.