Shoprite’s shares rose by 15 percent as it confirmed that it has received 70 percent of the sale of its Nigerian unit to a subsidiary of Persianas Investment, a Nigerian Property Conglomerate.
Shoprite announced earlier plans to sell off their investments in Nigeria after suffering two major sabotage attacks first as a backlash of the xenophobic attacks on Nigerians in South Africa and the #ENDSARS protest.
They also revealed that the unfriendly business climate and policies such as the border closure and inability to attract locally produced consumables helped spur that decision, coupled with the exchange rate crisis.
Shoprite had an estimated 44 stores across the country and the Group CEO, Pieter EngelBrecht disclosed plans to not remain in Nigeria at any cost.
Shoprite is not the only company to share the same sentiments as Shell recently announced plans to sell its investments due to increased pipeline sabotage by the locals in the oil-rich parts of the nation.
The country has also missed out on foreign direct investments from tehnology companies such as Twitter and Amazon who recently set up African Headquarters in Ghana and South Africa respectively.
Twitter explicitly stated that the cost of doing business in Nigeria was too steep, despite the fact that Nigerians account for its largest database of users and now targets the Nigerian audience.
The move spells trouble for the country whose inflation rate has rapidly increased to the 18.17% mark.