It’s appalling but Shoprite Holdings Ltd., who are proclaimed to be the driving force of the development trail into Africa, plans to leave Nigeria after the continent’s biggest food retailer battled with supply chain interruptions and confronted difficulties in getting cash out of the country.
This decision comes after several other South African retailers that have left the continent’s most-crowded country to concentrate more on their home market. Nigeria’s economy is being attacked by a droop in oil costs that have evaporated dollar supplies and the naira currency also depreciating recently.
According to the company, delays in clearing merchandise from Nigerian ocean ports, gridlock and poor road accessibility have made it hard for the Cape Town-based market administrator to get stock onto its racks.
Meanwhile, some other companies who were also situated in Nigeria, all left the country a few years ago. Woolworths Holdings Ltd., the South African vender of creator apparel and natural food, Truworths International Ltd. and some others shut all business activities and left to their respective countries for reasons of instability.
Shoprite, opened in Nigeria 15 years ago and the organization has been growing in more than 12 countries outside South Africa to be the continent’s wide superpower with 2,319 corporate-claimed food and alcohol retail locations. Tragically, after a number of years in Nigeria, the usual positive business opportunities in Nigeria can’t be said any longer.
Notwithstanding, Shoprite is also considering leaving certain African countries if that would help invert provincial sales declines. The company has recently shut down a store in Kenya’s second-greatest city, Mombasa, following a couple of long stretches of trading a difficult financial atmosphere.
The truth of the matter is, the Nigerian business condition is bit by bit getting more insecure, with the condition of the economy not doing so well. The country’s buying power is falling as people can’t purchase, even among their optimistic middle class people.
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