News / National
Modi acquires Choppies Zimbabwe for US$260,000 after selling it for US$22 million
17 Apr 2025 at 20:46hrs | Views
Deputy Industry Minister and prominent businessman Raj Modi has acquired Choppies Zimbabwe for just US$260,000, marking a dramatic turn in the retail chain's fortunes more than a decade after the Botswana-based supermarket giant entered the Zimbabwean market through him.
The acquisition was made through Pintail Trading, a company owned by Modi, and comes after Choppies exited the Zimbabwean retail market last year due to mounting operational challenges.
Ironically, Choppies initially entered Zimbabwe by acquiring 10 SPAR outlets from Modi in 2013 for approximately US$22 million. At its peak, the chain operated 30 stores and employed over 1,000 workers across the country.
Despite Choppies Zimbabwe having US$2 million in property, plant, and equipment and US$1.4 million in stock at the time of the sale, the company accepted the US$260,000 offer, incurring a nearly US$1 million loss. The decision underscores the difficult operating environment formal retailers face in Zimbabwe.
Industry analysts attribute Choppies' collapse to the country's controversial exchange rate regime, which forces formal businesses to trade at the official rate. This often results in higher pricing compared to informal traders, many of whom operate outside tax regulations and trade in smuggled or underpriced goods.
“The government's dual exchange rate system has made it near-impossible for formal retailers to remain competitive,” said an economist with a local think tank. “Choppies' exit reflects the broader crisis affecting structured retail operations in Zimbabwe.”
Modi has not publicly disclosed his plans for the newly acquired retail chain, but sources close to the transaction suggest a rebranding and restructuring process is likely in the pipeline. The acquisition also reignites questions around the viability of formal business investments in Zimbabwe's volatile economic landscape.
Industry observers will be watching closely to see whether Modi can revive what was once one of Zimbabwe's fastest-growing supermarket chains amid ongoing currency instability and informal market dominance.
The acquisition was made through Pintail Trading, a company owned by Modi, and comes after Choppies exited the Zimbabwean retail market last year due to mounting operational challenges.
Ironically, Choppies initially entered Zimbabwe by acquiring 10 SPAR outlets from Modi in 2013 for approximately US$22 million. At its peak, the chain operated 30 stores and employed over 1,000 workers across the country.
Despite Choppies Zimbabwe having US$2 million in property, plant, and equipment and US$1.4 million in stock at the time of the sale, the company accepted the US$260,000 offer, incurring a nearly US$1 million loss. The decision underscores the difficult operating environment formal retailers face in Zimbabwe.
Industry analysts attribute Choppies' collapse to the country's controversial exchange rate regime, which forces formal businesses to trade at the official rate. This often results in higher pricing compared to informal traders, many of whom operate outside tax regulations and trade in smuggled or underpriced goods.
“The government's dual exchange rate system has made it near-impossible for formal retailers to remain competitive,” said an economist with a local think tank. “Choppies' exit reflects the broader crisis affecting structured retail operations in Zimbabwe.”
Modi has not publicly disclosed his plans for the newly acquired retail chain, but sources close to the transaction suggest a rebranding and restructuring process is likely in the pipeline. The acquisition also reignites questions around the viability of formal business investments in Zimbabwe's volatile economic landscape.
Industry observers will be watching closely to see whether Modi can revive what was once one of Zimbabwe's fastest-growing supermarket chains amid ongoing currency instability and informal market dominance.
Source - online
