South Africa’s 7th richest billionaire loses $43.7 million as retail shares slide

The decline reflects ongoing pressures within South Africa’s retail sector, where persistent inflation, elevated borrowing costs, and subdued household consumption continue to challenge market performance.

Wiese holds a 10.67 percent equity stake in Africa’s largest supermarket operator, representing approximately 63.1 million shares.

Over the three-week period, the value of these holdings decreased from R18.33 billion ($1.06 billion) to R17.58 billion ($1.02 billion).

For decades, Shoprite has maintained its position as Africa’s largest supermarket chain, operating in excess of 3,500 stores and employing approximately 150,000 individuals across the continent.

This extensive footprint has historically provided resilience during economic downturns; however, the company is currently facing pressures from rising interest rates, higher food prices, and cautious consumer spending.

In recent weeks, Shoprite shares declined 4.12 percent, moving from R290.42 ($16.82) to R278.46 ($16.13), resulting in the company’s market capitalisation falling below $10 billion. Earlier in August and September, Wiese benefited from a temporary rebound, with his holdings increasing by $76.9 million to reach R17.65 billion ($996 million).

Year-to-date, Shoprite shares have decreased 5.45 percent. In practical terms, a $100,000 investment in January would now be valued at $94,550, reflecting the broader challenges facing South Africa’s retail sector.

Analysts attribute the pressure to persistent inflation, elevated borrowing costs, and restrained household spending, all of which adversely affect sales volumes and profit margins.

The transaction remains subject to regulatory approval, including from Malawi’s Competition and Fair Trading Commission and the Reserve Bank of Malawi.

In Ghana, Shoprite disclosed that it had received a binding offer in June for the acquisition of seven trading stores and a distribution warehouse. The group described the sale as “highly probable,” signalling a definitive pullback from what was previously regarded as a high-growth West African market.

Shoprite’s moves underscore the persistent challenges faced by global retailers across African economies, where currency volatility, shifting economic policies, and changing consumer dynamics can rapidly erode profit margins.

While Wiese’s wealth remains substantial, the recent decline and the strategic exits highlight the vulnerability of retail equities to macroeconomic fluctuations and the complexities of operating across multiple African markets.