Shoprite Sees Rising South African Confidence Fueling Growth

Shoprite Holdings Ltd. said rising consumer confidence in South Africa could fuel higher sales growth as the continent’s biggest food retailer increased the dividend and reported market share gains in its home country.

The half-year payout to shareholders will be raised by 14 percent, about in line with a year ago, Shoprite said in a statement after the market closed on Monday. That followed a six-month period in which the Cape Town-based company extended its lead over local rivals and positioned itself to build on that dominance.

“There is definitely a groundswell of optimism” in South Africa, Chief Executive Officer Pieter Engelbrecht said at a presentation in Cape Town on Tuesday. “I am optimistic about the economy and that growth will come.”

The owner…

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