Shoprite Holdings, Africa’s largest grocery retailer, is in talks with Investec about a potential partnership as it seeks to expand the financial services it offers millions of customers, according to people familiar with the matter. The discussions could give Shoprite access to additional banking expertise as it looks to capture more transactions across its retail network.

Negotiations are ongoing, and the structure of a possible agreement has yet to be determined, the people said, asking not to be identified because the discussions are private. There is no certainty the companies will reach a deal. Shoprite declined to comment, while Investec said it does not comment on speculation.

Retail meets banking

A partnership could help Shoprite broaden its financial services without taking on the responsibilities of operating a fully fledged bank. Investec could bring technology, regulatory expertise and lending capabilities to the retailer’s ambitions, potentially extending its reach beyond payments and everyday banking transactions.

Shoprite brings a substantial customer base, extensive transaction data and a nationwide store network. Those assets could help the companies develop financial products tailored to customers’ spending habits, including payments and rewards. The potential tie-up reflects a wider shift in South Africa, where retailers, banks, insurers and telecommunications companies are competing across traditional industry boundaries.

The transaction is key

Shoprite CEO Pieter Engelbrecht has repeatedly signaled that the retailer wants a larger share of the financial activity generated by its customer ecosystem, without becoming a conventional lender. In an interview on Sept. 1, he made the distinction clear: “I am after the transaction. We are not bankers, we are retailers.”

The company has already moved to strengthen its payments infrastructure. Shoprite acquired an initial 51% stake in R&A Cellular, a technology and payments business whose point-of-sale devices serve informal traders. The transaction became effective in August, giving the retailer another potential channel for distributing financial services.

Shoprite also works with African Bank on everyday banking services linked to its Money Market Account. The account allows customers to deposit and withdraw cash, transfer money and make purchases. The retailer has also been testing a debit card linked to the account and issued through Mastercard, extending its reach into conventional payment services.

A broader financial play

An agreement with Investec could add specialist banking and financial technology capabilities as Shoprite develops its offering. The retailer would be able to explore more sophisticated services while leaving regulated banking activities to an established financial institution. Engelbrecht has previously emphasized that distinction, saying: “Full-fledged banking, I think, is better left to the bankers.”

Founded in 1979 and headquartered in Cape Town, Shoprite operates more than 3,700 stores across Africa, spanning supermarkets, furniture retail and wholesale operations. Its extensive physical presence gives the group a direct connection to consumers and small businesses, potentially making financial services a valuable extension of its core retail operations.

Group sales rose 7.2% to R270.8 billion ($16.3 billion) in the reported period, from R252.7 billion ($15.2 billion) previously, an increase of R18.1 billion ($1.1 billion). The company also added a net 262 outlets across its South African supermarket operations. Total income increased 7.8% to R70.7 billion ($4.3 billion) during the 52 weeks ended June 28, 2026.

Investec, founded in Johannesburg, is an international banking and wealth management group serving individuals, businesses and institutions across Southern Africa, Europe and Asia-Pacific. A partnership would bring the bank into closer alignment with Shoprite’s expanding consumer payments business, although the scope and commercial terms of any agreement remain uncertain.