Choppies to finalise withdrawal from South Africa after selling Jwayelani chain

SOUTH AFRICA – Botswana’s Choppies Supermarkets is completing its exit from South Africa through the sale of its remaining assets, including the Jwayelani discount supermarket chain.

The company has agreed to transfer its full shareholding in Business Venture Investments No. 2243, the holding firm for 45 Jwayelani-branded outlets, along with the assets of its KwaZulu-Natal meat processing facility, to the Shingai Itai Consortium.

The buyer, a black-owned South African business with operations in retail, grain trading and logistics, is pursuing regulatory approval, with the deal expected to close before the end of November 2025.

Shoprite is reported to be backing the transaction, which effectively draws a line under Choppies’ troubled South African venture.

Choppies first entered South Africa in 2008 and listed on the Johannesburg Stock Exchange in 2015, but in 2020 began winding down operations in South Africa and other markets such as Mozambique, Kenya, Tanzania and Zimbabwe to concentrate on its core business in Botswana.

Although the group divested most of its South African interests at that time, it continued to run stores through the Jwayelani brand, prolonging its presence in the country.

The withdrawal process has been gradual, with Choppies offloading more than 90 supermarkets and distribution facilities in 2019 to Kind Investments Proprietary Limited for a nominal R1, equivalent to less than US$0.10.

Kind Investments assumed all the South African debt of Choppies and provided an interest-free loan of R100 million, about US$5.4 million, to sustain operations, and many of those stores have since been taken over by brands such as OK and Shoprite.

Shoprite has selectively integrated some of the stores into its portfolio while avoiding regulatory complications, according to industry accounts.

Observers link Choppies’ move to a wider pattern among South Africa’s largest retailers, including SPAR, Pick n Pay, Shoprite and Woolworths, who have been scaling back or retreating from external markets to focus on domestic competition.

Financial performance in Botswana

For Choppies, retrenchment to its home base has coincided with stronger retail activity, with full-year sales for the period ending June 2025 climbing 14.7 percent to US$671.5 million.

Gross profit for the year rose 16.8 percent to US$139.5 million, with margins improving slightly to 20.8 percent.

Operating profit, however, slipped 5.1 percent to US$23.5 million, though adjusted operating profit increased 12.2 percent to US$28.5 million.

Net profit after tax from continuing operations fell 23 percent to US$11.1 million, translating to basic earnings of 0.004 cents per share compared with 0.006 cents in 2024.

Choppies opened 30 additional stores during the financial year, reporting volume growth of 8.7 percent and price growth of 5.1 percent, while like-for-like sales increased 8.6 percent.

The group also exited Zimbabwe and wound down its general merchandise, South African liquor and Mediland divisions, while beginning the rollout of a new enterprise resource planning system.

Management said the company continues to operate in a competitive environment in Southern Africa, facing pressure from formal and informal traders, as well as heightened rivalry in the liquor sector and ongoing economic challenges such as inflation and currency volatility.

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