The Competition and Fair Trading Commission (CFTC) says it will assess the likely impact of the proposed sale of Shoprite chain stores to Karson Investment Trust on competition and the economy in general.
The sale, if successful, will result in the closure of Shoprite in the country, as the new acquirer plans to rebrand to Shopwise Trading Limited, selling groceries and other merchandise at a retail price.
However, Malawi Congress of Trade Union s(MCTU) says they are at pains to welcome such a development.
In a statement on Friday, CFTC executive director Lloyds Vincent Nkhoma said under the transaction, Shoprite Trading Limited, a subsidiary of South African retail stores Shoprite Trading Holdings Limited, intends to sell all of its chain of supermarkets across the three major cities in the country
He said: “In accordance with Section 37 of the Competition and Fair Trading Act, the commission is required to assess the likely impact of the proposed transaction on competition and the economy in general.
“The commission, therefore, is mandated to obtain views from interested parties and stakeholders the effect of the proposed transaction on competition, consumer welfare and the economy in general.”
In August 2022, then Minister of Labour Vera Kamtukule allayed fears that Shoprite was exiting Malawi after the company’s management had assured government that it will maintain five of its six shops in the country.
The assurance came after then Zomba Chisi legislator Mark Botomani (Democratic Progressive Party) asked the minister in Parliament about social media reports that the franchise was preparing to exit the country.
Meanwhile, MCTU president Charles Kumchenga has described the transaction as “painful”, observing that it will affect workers as some people will lose jobs.
“This is another setback,” he said.
South Africa retailer Shoprite has been shutting down stores and pulling out from several African markets citing financial losses and the need to refocus on its primary market back home.
The supermarket chain has since exited Tanzania, Nigeria, Kenya, Uganda, Madagascar and the Democratic Republic of Congo.
Karson Investment Trust is a property holding company registered in Malawi and is involved in property holding and property management business
