Chamwe Kaira
Namibia’s weak economy, marked by low consumer spending and high inflation, continues to strain regional retailers.
For Choppies Enterprises Limited, losses in its Namibian operations have deepened an already tough trading year pressured by rising diesel costs, foreign exchange volatility, and the sale of its Zimbabwean business.
The Botswana-headquartered retail group, listed on the Botswana Stock Exchange and Johannesburg Stock Exchange, issued a trading statement for the year ended 30 June 2025. Profit after tax from total operations is expected to fall between 25% and 35%, while profit after tax from continuing operations is projected to drop between 18% and 28%.
Choppies said the results were affected by divestments in Zimbabwe, foreign exchange movements on IFRS 16 lease liabilities, and higher diesel expenses to mitigate load-shedding. IFRS 16 requires companies to precognise assets and liabilities for leases longer than 12 months.
“The loss-making Namibia operations particularly affected the group’s effective tax rate, which climbed to 31% compared to 15% in the 2024 financial year,” the group said.
Despite the decline, Choppies said it remains focused on consolidating profitability in Botswana, Namibia, and Zambia.
Priorities include completing the turnaround of its hardware and Liquorama businesses, maintaining strict financial discipline, and advancing environmental, social, and governance initiatives.
For 2025, Choppies expects profit after tax from total operations to range between BWP 88 million and BWP 102 million, compared to BWP 136 million in 2024. Adjusted EBITDA is forecast to be between BWP 608 million and BWP 666 million, up from BWP 574 million.
The group cautioned shareholders that the figures are unaudited and final results will be released around 22 September 2025.
In May last year, Choppies said it planned to open seven more shops in Namibia.
The retailer operates more than 20 stores in the country and is considering expanding into the south, where oil and green hydrogen developments are driving new opportunities.
