Shoprite Holdings, South Africa’s largest supermarket chain, is reviewing its operations in Mozambique as part of a broader consolidation across the continent, CEO Pieter Engelbrecht told Reuters.

The retailer, which once operated in around 15 African countries, has scaled back sharply over the past five years. Exits from Ghana, Malawi, Nigeria, Kenya, the Democratic Republic of Congo, Uganda, and Madagascar reflect pressures from high inflation, currency volatility, import duties, and dollar-denominated rentals that have suppressed household spending and strained earnings.

Shoprite now maintains 268 stores in seven Southern African Development Community countries. Engelbrecht described Mozambique as a “high alert” market, citing stalled infrastructure projects and security risks in Palma, where Islamist insurgent attacks in 2021 disrupted a multibillion-dollar liquefied natural gas development by TotalEnergies. The project, initially scheduled to restart in June, has yet to resume, adding uncertainty to the retailer’s operations in the country.

“Africa has become the story of currency devaluations and high inflation,” Engelbrecht said, signalling caution in any new market entry. He added that future expansion outside South Africa, if pursued, would follow a different operational model.