Shoprite is pulling out of Nigeria & is launching a formal process to sell their stake

SA listed companies have found it challenging to do business in Nigeria. MTN, Tiger Brands & now Shoprite

Sharp reminder the sheer arrogance of thinking Africa is "all the same" will burn you

Having advised on cross border African M&A deals, there's very little emphasis at a senior exec level to really understand local cultures, consumer preferences & ways of doing business.

It's never as simple as just setting up shop & expecting profits to roll in.

Many people, especially global multi-nationals, completely underestimate how large & efficient the informal retail trade is.

These businesses operate through word of mouth, relationships, verbal contracts & timing. There's no sophisticated inventory management system - it works.

A few years ago I was in a basement warehouse in Dar es Salaam in 40 degree heat watching informal traders shout product prices in Swahili as they were leaving & dynamically pricing items.

It's a fucking machine.

Western business don't understand it. There's no SAP/ ERP systems

Here's the link to the SENS announcement from this morning https://www.moneyweb.co.za/mny_sens/shoprite-holdings-limited-operational-and-voluntary-trading-update-52-weeks-ended-28-june-2020/

If you operate in another country - you operate within the country's regulations.

Exchange control is a massive issue for corporates. Hedging out & repatriation/ getting money out isn't easy at all.

Sometimes you're funding in ZAR, earning in local currency & reporting in USD.