PZ Cussons Reverses Africa Exit, Banking on Nigeria’s Recovery

PZ Cussons has abandoned its earlier plan to withdraw from Africa, reaffirming its commitment to the region following signs of recovery in Nigeria’s economy and strong population growth forecasts across the continent.
The company announced the decision after concluding a comprehensive review of its African operations.

The consumer goods manufacturer had previously said it would examine the future of its Africa business. In its latest update, the company stated that it will now retain its operations and pursue an ambitious growth strategy aimed at balancing performance across developed and emerging markets.

As part of the review process, PZ Cussons sold its 50 per cent stake in PZ Wilmar Limited—its non-core edible oils venture in Nigeria—to Wilmar International for $70m. The group revealed that several parties had expressed interest in acquiring parts of its African portfolio, but the board concluded that long-term shareholder value would be better achieved by maintaining and expanding its presence on the continent.

According to the company, the decision is driven by strong demographic projections, with Africa’s population expected to grow by more than 900 million over the next 25 years. Nigeria alone is projected to add over 100 million people, supported by rising urbanisation and a rapidly expanding middle class. The company noted that recent improvements in economic and currency conditions have supported double-digit revenue growth in the first half of its financial year.

The board expressed confidence in the group’s ability to capitalise on these trends by leveraging its established brand heritage, manufacturing scale, and distribution networks—particularly as several global competitors have exited the market. Nearly 80 per cent of the company’s revenue in Nigeria comes from brands occupying top positions in their categories.

PZ Cussons said it is now focused on building a stronger lineup of local brands. Its strategy rests on three pillars: deepening its core business in Nigeria, Kenya and Ghana; expanding into adjacent categories such as men’s grooming and beauty; and extending its footprint into other African markets using Nigeria and Kenya as regional anchors.

The Africa division generated £141m in revenue and £16m in adjusted operating profit in the last financial year, accounting for roughly one-third of the group’s performance. The retained Africa business now includes Family Care and Electricals in Nigeria, along with Family Care operations in Ghana and Kenya. The group holds a majority stake of 73.3 per cent in PZ Cussons Nigeria Plc.