CEO of  South African food retailer, Shoprite Holdings, Whitey Basson says the grocer is planning to expand its business across the continent with 44 new outlets in Nigeria and 21 in Angola as high personal debt levels and growing fuel and transport costs rocks its consumer base on the home front.

According to Basson, the outlets will be established in the next three to four years.

Shoprite’s South Africa business have faced challenges as many of them fail to pay back their debts for three straight months this year, prompting banks to tighten their lending criteria, while a weaker rand currency fuelled inflation and higher petrol prices.

The retailer said it achieved an 11 per cent rise in full-year profit – a number that fell slightly short of market expectations as consumer cut down on spending.

Trading profit in the year to June 2013 also grew by 15.6 percent despite demanding market conditions. Its headline earnings per share totaled 675.4 cents in the year to June compared to the 607 cents in 2012.

Basson noted that the strong growths recorded were achieved beyond South Africa’s borders.

“Growth within South Africa was hampered during the year by widespread labour unrest, rising costs fuelled by a weak rand, falling commodity prices and consumers’ lack of disposable income due to their high level of indebtedness,” Basson said.

He added that “The country’s low growth rate created many challenges for the retail industry, a situation exacerbated by the government’s sluggish pace at creating an environment in which business could flourish. At the same time a lack of job opportunities increased the dependence of millions of South Africans on government grants of which the annual increase did not keep up with inflation.”

Shoprite has 153 supermarkets in 16 countries outside South Africa.