Choppies
Botswana-based retail giant Choppies Enterprises Limited has officially exited the South African market, finalising the sale of its 45 Jwayelani-branded stores and a KwaZulu-Natal meat processing plant to the Shingai Itai Consortium. The move, announced in September 2025, marks the culmination of Choppies’ strategic retreat from South Africa, allowing the retailer to sharpen its focus on its home market of Botswana and other key regions. This divestment aligns with broader trends among South Africa’s retail heavyweights, who are increasingly prioritising core operations amid a fiercely competitive landscape.
The sale, led by Shingai Retail Investments under the leadership of CEO Philisiwe Sibiya, transfers full ownership of Business Venture Investments No. 2243, which operates the Jwayelani chain, to the black-owned consortium. With regulatory approvals pending, the transaction is expected to close before the end of November 2025. This article explores Choppies’ journey in South Africa, the details of the sale, and the broader implications for the retail sector.
Choppies’ South African Journey: A Brief but Ambitious Venture
Founded in 1986 in Lobatse, Botswana, Choppies grew from a single store, Wayside Supermarket, into a regional powerhouse, becoming the largest retailer in southern Africa outside South Africa, with 161 stores across four countries by 2024. The group entered the South African market in 2008, opening its first store in Zeerust, North West, and later expanding through the acquisition of 21 Jwayelani stores in KwaZulu-Natal and the Eastern Cape in 2016. These community-focused discount supermarkets, originally a butchery chain, became a key part of Choppies’ South African footprint.
Choppies’ ambitions were further signalled by its secondary listing on the Johannesburg Stock Exchange (JSE) in 2015, following its primary listing on the Botswana Stock Exchange in 2012. At its peak, the retailer operated 94 stores in South Africa, supported by a distribution centre in Rustenburg opened in 2014. However, the highly competitive South African retail environment, dominated by giants like Shoprite, Pick n Pay, SPAR, and Woolworths, posed significant challenges.
By 2019, financial strains emerged, with Choppies reporting losses and facing a share price drop of over 60% after delayed financial results raised concerns about accounting practices. The retailer announced plans to exit South Africa and other markets, including Mozambique, Kenya, Tanzania, and Zimbabwe, to focus on Botswana, Zambia, and Namibia. While most Choppies-branded stores were sold to Kind Investments for a nominal R1 in 2019, the Jwayelani chain remained under its control until the recent deal.
Details of the Jwayelani Sale
The agreement with the Shingai Itai Consortium involves the sale of 100% of Choppies’ shareholding in Business Venture Investments No. 2243, which operates 45 Jwayelani stores, alongside the assets of a meat processing facility in KwaZulu-Natal. This facility is integral to Jwayelani’s value proposition, particularly its popular meat offerings, which have cultivated a loyal customer base in communities across KwaZulu-Natal, the Eastern Cape, and other regions.
The transaction, described as a “full divestment,” transfers ownership and operational control to the Shingai Itai Consortium, a black-owned business with interests in grocery retail, grain import/export, and logistics. Philisiwe Sibiya, CEO of Shingai Retail Investments, expressed enthusiasm for the acquisition, stating, “This acquisition is close to my heart – I want to bring Jwayelani back to its roots and reconnect with its customer base.” She highlighted plans to position Jwayelani as a leading value grocery retailer while empowering black-owned producers, farmers, and suppliers by connecting them directly to consumers.
The deal has garnered support from industry players, with Shoprite, a key facilitator, expressing confidence in Sibiya’s vision. “We’re proud to have facilitated this deal and confident that Philisiwe and her team will use the Jwayelani platform to build a sustainable retail business,” a Shoprite spokesperson noted. The transaction awaits approval from the South African Competition Commission and other regulatory bodies, with completion expected by November 2025.
Strategic Rationale and Market Context
Choppies’ exit from South Africa is part of a broader strategy to streamline operations and focus on more profitable markets. The group stated, “This divestment allows Choppies to streamline its operations and focus on its strategic priorities, while ensuring the Jwayelani stores continue to grow under new ownership and to ensure the business is sustainable over the long term.” This move mirrors trends among South Africa’s major retailers, who are recalibrating to prioritise core markets amid economic and competitive pressures.
South Africa’s retail sector is notoriously challenging, with dominant players like Shoprite, Pick n Pay, SPAR, and Woolworths commanding significant market share. Shoprite has scaled back international operations to focus on its home market, where it is expanding aggressively. Pick n Pay’s right-sizing strategy involves closing underperforming stores and bolstering its Boxer brand, which listed separately on the JSE in 2023. SPAR has exited European markets to concentrate on South Africa, while Woolworths has faced setbacks in Australia, reinforcing its focus on local food retail.
For Choppies, the decision to exit South Africa follows earlier divestitures in 2019–2020, when it sold operations in multiple African countries due to financial strain and declining profitability. The retailer’s challenges in South Africa were compounded by a reliance on mining-dependent regions, which faced economic downturns, and operational issues, including a 2018 suspension of its CEO, Ramachandran Ottapathu, amid governance concerns.
Financial Performance and Botswana Focus
Choppies’ strategic pivot to its home market is yielding results. For the financial year ending June 2025, the group reported revenue of R12 billion, up from R10.4 billion the previous year, driven by strong performance in Botswana, Zambia, and Namibia. However, increased costs from store rollouts and operations slightly reduced net profits compared to 2024, though the group remained profitable.
In Botswana, Choppies operates two distribution centres in Gaborone and Lobatse, supporting efficient supply chains for its 161 stores. The retailer’s focus on fast-moving consumer goods (FMCG) and private-label products has strengthened its position as a value-driven chain, catering to cost-conscious consumers. Its corporate social investment initiatives, including plastic reduction and recycling stations, align with growing consumer demand for sustainability.
The exit from Zimbabwe, completed in March 2025 with the sale of 30 stores to Sai Mart, further underscores Choppies’ consolidation strategy. Economic instability and a 30% decline in formal retail foot traffic in Zimbabwe prompted the move, allowing the group to channel resources into Botswana and other stable markets.
Opportunities for Shingai and Jwayelani
The acquisition presents a significant opportunity for the Shingai Itai Consortium to reshape Jwayelani into a formidable player in South Africa’s discount retail segment. Sibiya’s vision extends beyond traditional retailing, aiming to create a “food platform” that empowers black-owned businesses. By leveraging Jwayelani’s community ties and meat-focused offerings, Shingai plans to enhance the brand’s appeal while fostering economic inclusion.
The 45 stores, located in busy areas like Durban, Pietermaritzburg, and smaller centres such as Empangeni and Umzinto, serve a loyal customer base. Shingai’s experienced management team is expected to drive operational improvements, potentially expanding the chain’s footprint and integrating local suppliers into its value chain.
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