/ 29 March 2011

Zambia regulator clears Shoprite on supply deals

Zambia has cleared Africa's largest grocer Shoprite over allegations of threatening to blacklist suppliers who dealt with its rival Pick n Pay.

Zambia has cleared Africa’s largest grocer Shoprite over allegations of threatening to blacklist suppliers who dealt with its rival Pick n Pay, the regulator said in Tuesday.

Zambia’s competition and consumer protection commission opened a probe late last year against Shoprite after a supplier complained that the company had threatened to blacklist it.

“Investigations have revealed that Shoprite did not abuse its market position as claimed by the complainant,” commission spokesperson Brian Lingela said.

Lingela said investigations revealed that the complainant had no supply contract with Shoprite and that genuine suppliers were not aware of such threats made by the company.

Shoprite has been operating in Zambia since 1995 and has a chain of 19 stores. Pick n Pay opened its first shop in July last year. — Reuters