DISINVESTMENT OF MULTINATIONAL CORPORATIONS IN DEVELOPING AREAS: AN ASSESSMENT OF SHOPRITE DISENGAGEMENT IN NIGERIA

Abstract

Multinational corporations (MNCs) in emerging markets are increasingly facing disinvestment pressures. This paper examines the exit of South Africa’s Shoprite retail chain from Nigeria in 2020 after 15 years of operation, analyzing the interplay of market, legal, and political factors. Drawing on case study methodology and data from corporate reports, legal documents, and media analysis, we argue that Shoprite’s disinvestment resulted not from a single cause but from a confluence of intensified local and online competition, a costly legal dispute with a former partner, and the deteriorating bilateral political environment between Nigeria and South Africa. The case challenges simplistic applications of neoliberal and oligopolistic theories to African retail markets, revealing instead how hyper-competitive local ecosystems and geopolitical tensions can undermine MNC strategies. The study contributes to understanding MNC exit decisions in developing economies and highlights the risks of overlooking non-market factors in corporate planning.