Shoprite pulls out of Malawi

Concern over jobs and the country's fragile consumer market

- Collins Mtika

Malawi has become the latest casualty in what analysts described as the most significant retail retreat in modern African history after the Competition and FairTrading Commission's approval of five Shoprite stores to Karson Investment Trust.

Commissioners approved the transfer on 12 September, sealing the fate of 25 years of retail history.

Hundreds of workers face uncertain futures with Karson Investment Trust assuming control of stores in Lilongwe, Blantyre and Limbe.

"This is another setback," said Charles Kumchenga, president of the Malawi Congress of Trade Unions.

The Competition and Fair-Trading Commission's approval of the Shoprite deal came with stringent conditions, including that Karson retain all employees who choose to stay, honour benefits for those leaving and submit compliance reports every 90 days for two years.

These unprecedented conditions suggest regulatory anxiety about the acquisition's true implications.