British consumer goods giant PZ Cussons announced Thursday that it has abandoned its plan to withdraw from Africa, citing signs of economic recovery in Nigeria and compelling long-term demographic and growth prospects across the continent.
The multinational, headquartered in Manchester, confirmed the decision following a comprehensive strategic review of its African operations initiated earlier this year.
The company will now retain and strengthen its presence in key markets, including Nigeria, Ghana, and Kenya, while focusing on leveraging its strong brand portfolio against a stabilising economic backdrop.
The Board of Directors concluded that retaining the African business would create "the greatest value for shareholders" by maintaining a balanced group portfolio that includes its emerging markets of Indonesia and Nigeria alongside developed markets like the United Kingdom and Australia/New Zealand, according to a company statement.
Despite receiving "significant levels of interest" from potential buyers for its wider African portfolio, the company opted to stay.
PZ Cussons first disclosed its intention to review its African business in April 2024. This review came amid rising operational costs, high volatility, and persistent challenges related to foreign exchange availability across the continent, particularly in Nigeria—its largest African market.
The decision to explore an exit mirrored moves by several other major international companies that have recently scaled back or departed the region due to similar economic headwinds.
As part of the restructured strategic plan, the group confirmed the sale of its 50 per cent equity interest in PZ Wilmar Limited, a joint venture operating in Nigeria’s edible oils segment. The stake was sold to its partner, Wilmar International Limited, for $70 million, allowing PZ Cussons to exit a non-core segment and raise capital.
The remaining African portfolio now focusses on Family Care and Electricals in Nigeria, and Family Care operations in Ghana and Kenya. PZ Cussons holds a 73.3 per cent stake in PZ Cussons Nigeria Plc.
The company cited the continent's projected population surge as a primary motivator for the change in strategy. The statement noted that Africa’s population is forecast to grow by more than 900 million over the next 25 years, with Nigeria’s population alone projected to increase by over 100 million. This growth is expected to be amplified by urbanisation and rapidly expanding middle classes.
"While the short-term currency environment remains a risk, we are strategically focused on the undeniable long-term opportunity presented by Africa’s demographics," a spokesperson for PZ Cussons stated in a briefing to investors. "Recent economic and currency trends have been more favourable, supporting double-digit revenue growth in our Africa business in the first half of the financial year."
PZ Cussons has outlined a three-pillar strategy to drive its renewed commitment across the region: core growth, category expansion, and Pan-Africa growth. The core growth pillar is focused on strengthening operations in Nigeria, Kenya, and Ghana through stronger brand building, expanded distribution, and enhanced digital engagement. The company reported that it has successfully doubled the number of directly served stores in Nigeria since the 2022 financial year.
The category expansion pillar targets entry into adjacent sectors, such as men’s grooming and beauty, leveraging popular existing brands like Venus, Imperial Leather, and Premier. Finally, the Pan-Africa growth plan aims to extend operations into new markets using Nigeria and Kenya as established regional hubs.
The company expressed confidence that it is "well-placed to succeed," noting that nearly 80 per cent of its Nigeria revenue is generated from brands holding the number one or number two positions in their categories.
In the 2025 financial year, PZ Cussons’ African operations generated £141 million in revenue and £16 million in adjusted operating profit, representing 27 per cent and 30 per cent of the Group’s totals, respectively.
