Farouk Ismail, one of Botswana’s most affluent businessmen, witnessed the market value of his stake in Choppies Enterprises decline by millions of dollars in 2023, pushing the market value of his stake in the renowned retail conglomerate below the $10-million mark.
According to data tracked by Billionaires.Africa, the market value of Ismail’s stake in Choppies Enterprises plummeted by BWP46.19 million ($3.42 million) in 2023, placing him on the long list of Botswana businessmen who experienced significant wealth losses that year.
The decline in the market value of his stake in 2023 offset the minor gains he recorded in 2022 when the share price of Choppies Enterprises increased marginally from BWP0.6 to BWP0.65, thus pushing the group’s market cap above $87 million on the Botswana Stock Exchange.
Choppies’ financial turbulence: Share price plummets by 26.15 percent in 2023, impacting stakeholders
Choppies Enterprises is Botswana’s largest supermarket chain and one of the biggest retailers in Africa. The group owns a centralized distribution network in South Africa, Zimbabwe, Zambia, and Kenya and sells leading international food brands along with its own private-label products.
Choppies has grown from a single store operating under the name “Wayside Supermarket” in Botswana in 1986 into a leading retailer with more than 260 stores in eight countries.
In 2023, Choppies shares declined significantly by 26.15 percent, falling from BWP0.65 ($0.048) on Jan. 1 to BWP0.48 ($0.0356) on Dec. 29, leading to substantial financial losses for the group’s shareholders, including Ismail, who owns a significant stake in the group.
Choppies co-founder faces $3.4-million loss, yet remains a top figure in Botswana
Ismail, a top figure among Botswana’s wealthiest individuals, not only co-founded Choppies but also holds the position of deputy chairman within the organization. His significant stake in the Gaborone-based retail giant amounts to 14.99 percent — this translates to a total of 271,691,921 shares.
Consequently, the market value of Ismail’s stake in the retail giant decreased by BWP46.19 million ($3.42 million), falling from BWP176.59 million ($13.07 million) on Jan. 1 to BWP130.41 million ($9.65 million) on Dec. 29.
Despite the plunge, Ismail continues to stand out as a top figure on the Botswana Stock Exchange, retaining his position as one of the country’s wealthiest investors. His influential role in the expansion of Botswana’s real estate sector and the retail sub-sector remains evident.