(Ecofin Agency) - Tiger Brands has decided it has given enough in Nigeria. Indeed, Africa’s best consumer foods maker announced it has written off all of its remaining investment in Dangote Flour Mills (DFM). Nearly $120 million lost. “We spent a bucket load of cash learning the lessons of this failure and now shareholders are upset” said Peter Matlare, Tiger Brands’ CEO till the end of the year.

According to the outgoing executive, the failure of the South African group on the Nigerian market, the DFM experience should push the company to rethink its expansion plan on the continent. Indeed, since injecting $200 million for a 65% stake in the flour maker three years ago, the group made no profit from its investment. A situation which arose from DFM’s rude competition but also from the depreciation of Naira as oil prices dropped.

Tiger Brands who on two occasions had written off a part of its investment recently announced it was fully cutting it in its subsidiary. This led to billionaire Aliko Dangote leaving the firm’s board of directors. Without financing from the head company and with a market suffering the naira’s alarming status, the issue here is no more DFM’s survival but how long this ship lasts before sinking.

Tiger Brands also announced it was writing off another 18 million it invested in another Nigerian company where it holds a 49% stake: Deli Foods.

Aaron Akinocho