- Shoprite is in talks with Investec to offer financial services, but says it wants transactions, not a fully fledged bank
- After exiting seven African markets, Shoprite is selling its remaining Nigerian property interests and focusing on eight countries
- The retailer is expanding digital payments through its Money Market Account and a 51% stake in payments firm R&A Cellular
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
South African retail giant Shoprite Holdings is exploring a major expansion into financial services through a potential partnership with Investec, marking a new chapter for Africa’s largest supermarket operator after its withdrawal from Nigeria and several other African markets.
The retailer, backed by billionaire Christo Wiese, is reportedly holding discussions with Investec to offer more financial products to millions of customers without becoming a fully licensed commercial bank.
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The development comes as Shoprite, once a major player in Nigeria’s supermarket industry, shifts its attention from aggressive geographical expansion to digital payments, financial services and stronger operations in its remaining markets.
According to Bloomberg, which cited people familiar with the discussions, negotiations are ongoing, but neither company has agreed on the structure of a potential partnership.
Shoprite declined to comment, while Investec said it does not respond to market speculation.
Shoprite targets banking customers
The proposed partnership could allow Shoprite to combine its extensive supermarket network and customer database with Investec’s banking technology, regulatory expertise and financial infrastructure.
The strategy would enable the retailer to earn more revenue from everyday customer transactions, including payments, money transfers and other financial services.
Shoprite Chief Executive Officer Pieter Engelbrecht has repeatedly emphasised that the company is interested in financial transactions rather than establishing a conventional bank.
“I am after the transaction,” Engelbrecht said during a September 1 interview.
“We are not bankers, we are retailers,” he added.
“Full-fledged banking, I think, is better left to the bankers.”
The approach reflects a growing trend among African retailers seeking additional income from financial services while maintaining their core supermarket businesses.
Shoprite makes final moves on Nigerian operations
The banking discussions come amid Shoprite’s continued restructuring across Africa, including the winding down of its remaining interests in Nigeria.
The South African retailer sold its Nigerian supermarket operations in 2021, transferring the
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