Deputy Minister Raj Modi bought back his old supermarket chain for much less than he sold it for. In 2013, he sold ten SPAR stores to the Botswana company Choppies for $22 million. The chain grew to 30 locations with over 1,000 workers by 2018. Choppies left Zimbabwe in 2023 because it couldn't operate profitably during currency problems. Modi purchased everything back through his company for just $260,000 last year.
The deal shows how hard Zimbabwe became for outside investors despite political connections. Former Vice President Phelekezela Mphoko helped Choppies enter Zimbabwe before losing power with Robert Mugabe. Legal fights followed as Mphoko family members claimed ownership shares. The court rejected their attempt to stop Modi from buying the chain.
Company records showed Choppies still had $2 million in assets when Modi bought it back. Experts wonder if other private arrangements existed between the parties. Zimbabwe's exchange rules hurt formal stores, which must use official rates much lower than street values. They cannot compete against informal sellers who smuggle goods or use black market currency rates. The formal retail sector has shrunk 70 percent since 2019.
The deal shows how hard Zimbabwe became for outside investors despite political connections. Former Vice President Phelekezela Mphoko helped Choppies enter Zimbabwe before losing power with Robert Mugabe. Legal fights followed as Mphoko family members claimed ownership shares. The court rejected their attempt to stop Modi from buying the chain.
Company records showed Choppies still had $2 million in assets when Modi bought it back. Experts wonder if other private arrangements existed between the parties. Zimbabwe's exchange rules hurt formal stores, which must use official rates much lower than street values. They cannot compete against informal sellers who smuggle goods or use black market currency rates. The formal retail sector has shrunk 70 percent since 2019.
