Chandra Chauhan’s Sefalana expects profit to fall as Botswana economy weakens

Sefalana Holding Company Ltd., run by Botswana magnate Chandra Chauhan, says profit before tax is set to fall in its latest half year as a weaker economy and higher living costs pressure shoppers and retailers alike.

Sefalana said group profit before tax for the 26 week period ended Oct. 26, 2025, is expected to be 10% to 12% lower than the comparable period a year earlier. The company put the drop at about P22 million ($1.64 million) to P26 million ($1.94 million) from the prior period’s P219 million ($16.37 million), in a cautionary announcement issued through the Botswana Stock Exchange on Jan. 13.

Chauhan holds about 5.6% of Sefalana, roughly 14.1 million shares, according to published shareholding data.

Directors linked the expected decline to a tougher economy after a slowdown in the diamond sector and a currency adjustment to the pula in July 2025.

Chauhan, on Sefalana’s board since 2002, is credited by the company with restructuring the business and lifting its market value into the billions of pula.

Botswana’s reliance on diamonds means weakness there quickly filters into consumer spending, and both Moody’s and the IMF have pointed to headwinds tied to the downturn.

Sefalana sits at the center of that demand, and management says shoppers have been more price sensitive as food inflation and living costs climb.

In Botswana, its store portfolio includes 29 supermarkets branded Sefalana Shopper, 25 Cash and Carry outlets and four Hyper stores in Gaborone, Francistown and Mahalapye. The company also lists four Sefalana Quick convenience stores, six liquor outlets, Capital Tobacco and a Puma franchise filling station, plus nearly 400 voluntary franchise members.

Through Foods Botswana, Sefalana runs a milling operation with a factory in Serowe that produces sorghum, soya and maize based products and supplies enriched meals for government feeding schemes, while also producing its own staples.

The group has been expanding food service inside some stores, including Bake and Grill hubs and pizza and shawarma counters, a bet that convenience can keep customers returning even as they cut back elsewhere.

Outside Botswana, Sefalana operates in Namibia through Metro, a cash and carry business it says grew after opening in Katima Mulilo in 2013 and taking over the Metro chain. In Australia, it holds a 40% stake in Seasons Group, which it describes as part of a push to diversify income and foreign exchange exposure.

Higher transport and utility bills, plus the cost of imported stock, have squeezed margins across retail. Currency shifts can lift those costs further, leaving retailers to balance promotions against profitability.

Sefalana said it plans to publish consolidated interim results by the end of January 2026, including commentary on what drove performance during the period. The board urged shareholders and investors to exercise caution until the report is released, a refrain on the exchange when earnings swing outside expectations in the near term. Investors will be watching whether Chauhan can keep volumes steady and protect margins as Botswana’s slowdown keeps shoppers cautious.