Mphoko Claims Credit for Choppies’ Success as Modi Takes Over Zimbabwe Operations

Siqokoqela Mphoko
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Bulawayo, Zimbabwe – Siqokoqela Mphoko, the son of the late former Vice President Phelekezela Mphoko, has claimed that his family transformed Choppies Zimbabwe into a profitable business within four years, growing it from a few unprofitable outlets to 35 nationwide.

Mphoko made the remarks amidst the official transfer of Choppies Zimbabwe’s operations to Sai Mart, owned by Raj Modi, a Member of Parliament for Bulawayo South and Deputy Minister of Industry and Commerce.

In a post on X (formerly Twitter), Mphoko asserted:

“You can try and rewrite Choppies’ history in Zimbabwe, but you can never take away what I did at Choppies, even if you tried. Modi sold his assets to us in 2013. We took over his very unprofitable shops and grew them to 35 in four years. I left in 2019. It failed to hold, it collapsed.”

The Rise and Fall of Choppies Zimbabwe

Choppies entered the Zimbabwean market in 2013 by acquiring Spar outlets and expanded further in 2014 by establishing a distribution centre to streamline its supply chain. However, the Botswana-based retail giant announced its exit from Zimbabwe on 29 November 2024, citing financial and operational challenges.

By the time of its departure, Choppies had 30 grocery stores operating under its subsidiary, Nanavac (Pty) Ltd. The company attributed its struggles to Zimbabwe’s volatile economic environment and legal disputes involving its founding owners in Botswana.

Business and economics analyst Brighton Musonza noted that Choppies’ downfall was predictable.

“In the Zimbabwean market, Choppies may have finally collapsed under the weight of chaotic currency reforms, but its downfall was predictable from the start. From the moment it entered the Zimbabwean market, its rapid, politically-assisted expansion in Zimbabwe and the region lacked the foundation of solid, organic growth, leaving it vulnerable to market volatilities,” Musonza said.

Choppies’ Regional Struggles

The challenges faced by Choppies in Zimbabwe mirrored those in its regional operations. The company relied heavily on political networks in Botswana to fuel its growth, which proved unsustainable.

In 2015, Choppies sought $15 million in capital from the Johannesburg Stock Exchange (JSE) but failed to attract investors due to concerns about its market growth potential. Subsequently, in 2018, its parent company in Botswana delayed the release of annual results after PricewaterhouseCoopers (PwC) flagged audit concerns.

A forensic investigation by Ernst & Young revealed accounting irregularities in Choppies’ operations in South Africa and Zimbabwe. These included discrepancies in inventory records, bulk sales, and store acquisitions.

These issues culminated in a 60% drop in Choppies’ share value, leading to its suspension from trading on both the Johannesburg Stock Exchange and Botswana’s primary bourse.

Modi Takes Control

Effective 1 January 2025, Modi officially took over Choppies’ Zimbabwean operations under his retail chain, Sai Mart. Modi, who has been operating six branches in Bulawayo, will oversee the countrywide transition.

In a statement, Choppies assured stakeholders of a seamless transition with no job losses for employees.

While the change marks a new chapter for Zimbabwe’s retail landscape, questions remain about the sustainability of the business under its new ownership. The legacy of Choppies in Zimbabwe is now contested, with Mphoko and Modi offering competing narratives about its rise and fall.