One of Africa’s largest supermarket chains, Shoprite, has begun a formal process to exit Nigeria.

The megastore company said its decision was based on the coronavirus pandemic which has disrupted major businesses.

In an “Operational and Voluntary Trading Update (52 Weeks Ended 28 June 2020)” released on Monday, the company said it has been approached by “various potential investors”.

The update partly read: “Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited.

“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time.”

The company entered the Nigerian market in 2005. It provides jobs for more than 2,000 Nigerians with over 25 stores spread across eight states of the Federation including the Federal Capital Territory, Abuja.

Mr Price, another South African retailer, announced plans to close its Nigerian business in June.