Interested parties and stakeholders have two more days to submit views to CFTC on the effect of acquisition of Shoprite on the market

* As regards to competition, consumer welfare and the economy in general

By Duncan Mlanjira

Interested parties and stakeholders have two days left to meet the deadline of August 7 set by Competition & Fair Trading Commission (CFTC) to submit views on the proposed acquisition of assets of business from Shoprite Trading Limited to Karson Investment Trust.

A public notice was issued on August 1, 2025 by CFTC Chief Executive Officer, Lloyds Vincent Nkhoma detailing that it received the application to authorise the deal between Shoprite and Karson Investment Trust — a property holding company registered in Malawi under the Deeds Registry.

Nkhoma indicated that based on the information submitted by the parties, Karson is involved in property holding and property management business and upon completion of the proposed transaction, it intends to operate a separate company under the name ‘Shopwise Trading Limited’ which will be the supermarket business.

Shoprite Trading Limited is a company incorporated under the laws of Malawi — a subsidiary of Shoprite Trading Holdings Ltd, a South Africa based company operating a large chain of retail stores in South Africa and several other African countries.

However, reports indicate that Shoprite is has been closing its stores and exiting from several African countries that include Tanzania Nigeria, Kenya, Uganda, Madagascar and the Democratic Republic of the Congo (DRC).

According to a report by Tanzania Times; why-is-shoprite-closing-all-its-supermarkets-across-africa/, Shoprite is citing financial losses and a need to focus on its core South African market as reasons for the series of exits.

CFTC indicates that in Malawi, Karson Investment Trust operates a chain of supermarkets across the country’s three major cities and also offers a range of products and services, including holding and lease of properties.

Shoprite intends to enter into Sale of Assets Agreement with Karson Investment Trust and Shopwise Trading Limited for the sale of its assets such as movable assets, real property and effective date stock.

“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.”

Thus CFTC gave the seven day notice to all interested stakeholders, including competitors, suppliers and customers of the parties to the proposed transaction, to submit written representations to the Commission.

The submissions should include comments on the developments and growth of the retail trading of groceries and other merchandise (the supermarkets business) and the holding and leasing of property industry; any expected benefits arising out of the proposed transaction; and more specifically, the impact of the transaction on competition, consumer welfare and the economy in general.

The stakeholders were provided with guiding questions, though not exhaustive and should not in any way restrict [their] views on the proposed transaction, that include:

1. Who are the key players in the market for: (i) retail trading of groceries and other merchandise; and (ii) property holding and leasing in Malawi?;

2. What are the most recent statistics on market shares (or estimates) in the market for (i) retail trading of groceries and other merchandise; and (ii) property holding and leasing in Malawi?;

3. Whether the subject transaction will result in substantially lessening competition or create a dominant player in (i) retail trading of groceries and other merchandise; and (ii) property holding and leasing in Malawi?;

4. Comment on the ease of entry into in the: (i) retail trading of groceries and other merchandise; and (ii) property holding and leasing in Malawi?;

5. Comment on the levels of import competition, if any, in the: (i) retail trading of groceries and other merchandise; and (ii) property holding and leasing in Malawi?;

6. The likelihood that the acquisition would result in the merged parties having dominant market power in the: (i) retail trading of groceries and other merchandise; and (ii) property holding and leasing in Malawi?; and

7. Any general comments they may have on the impact the proposed transaction.

The written submissions to be sent to:

The Chief Executive Officer, Competition and Fair Trading Commission, MERA Office Complex, Near Civic Offices, City Centre, Private Bag 332, Lilongwe 3 — or email: competitioncommission@cftc.mw

CFTC assured all the information that will be made available “shall be treated with the strictest confidentiality and will only be used for the purpose of this inquiry” and in case of needing further details and/or clarifications on any aspect of this inquiry, to contact the CFTC through phone number +265891001441; toll-free line 2489 or email competitioncommission@cftc.mw.