South Africa’s Tiger Brands is still committed to its investments in Nigeria even after Africa’s richest man, Aliko Dangote, resigned from the company’s flour firm in November.

The South Africa-based consumer goods maker is the largest food producer in the West African nation of more than 170 million people. It competes closely with Nestle in Africa’s biggest economy.

After spending 2.9 billion rands ($18.8 million) purchasing a two-thirds stake in Dangote Flour Mills three years ago as part of a broader plan to expand in the rest of Africa to offset slow growth in the home market, Tiger Brands had to swallow its pride and  write-downs nearly 1 billion rands this year.

The firm cut financing to Dangote Flour in a move aimed at freeing up cash and enhancing earnings in the short term, but led to resignation of Aliko Dangote, who owns 10 percent of the milling firm, and other directors including Olakunle Alake, Asue Ighodalo and Arnold Ekpe.

Peter Matlare, Tiger Brand’s chief executive, however said the suspension of funding to the miller did not erode the confidence the company has on the Nigerian economy.

According to him, apart from retaining its stakes in other investments in Nigeria, the company will consider new acquisitions whenever an opportunity arises.

“We will look at all opportunities and consider them on their merits. This action is not a vote of no confidence in Nigeria, as Tiger Brands retains its 50 per cent interest in UAC Foods and its 100 per cent interest in Deli Foods,” Matlare said.

“Africa remains fundamental to Tiger’s international growth strategy and we will continue to develop in these markets and invest appropriately to drive penetration. Despite some challenges in our African businesses, expansion in Africa represents a growth opportunity for the group,” he added.

With the withdrawal of further funding to Tiger Branded Consumer Goods Plc (TBCG), which has been struggling with losses over the years,  he said “a variety of options are being considered, which could include a partnership, a sale, a merger, but no decision has as yet been made”.

New investors are already showing early interests in acquisition of assets of TBCG Plc as the foreign core investor in the company continue to evaluate all options for the restructuring of the loss-making Nigerian subsidiary, The Nation reported.

Jiten Bechoo, an analyst at Cape town-based Avior Capital Markets, believes the move would enhance Tiger Brands’ earnings in the “longer term”.

“In the longer term, Nigeria will probably be a good place to be if you have scale, but Tiger Brands would probably have to refinance Dangote and probably take it a step forward by, for example, going into baking,” Bechoo told Fin24.

Operating in Nigeria has been challenging for South African retailers and manufacturers because of bureaucracy, corruption, infrastructure bottlenecks, and currency volatility, BusinessDayLive reported.

The South African government warned in April that South African nationals and companies in other countries could suffer a backlash as a result of the xenophobic attacks on foreigners earlier in the year.