Report Coverage
This report focuses on the wholesale and retail food in Zambia and includes information on formal and informal sectors, trade, corporate actions and development, government support and regulations, key trends and influencing factors. There are profiles of 12 companies including South Africa companies present in Zambia such as Shoprite, Pick n Pay and Massmart, Botswana’s Choppies and local companies such as Zambeef.
Introduction
• Large foreign-owned retail chains dominate Zambia’s formal food sector, but an estimated 70% of households buy their food at stalls, informal shops, kiosks, street vendors and markets.
• Almost 80% of Zambia’s informal workers are employed in agricultural and related activities.
• Rapid urbanisation and a growing population support further growth and expansion opportunities.
• The development of supermarket chain stores in Zambia has improved the availability of products and services and has provided more choices for Zambian consumers at competitive prices.
• However, there are numerous challenges including vulnerability to droughts, high inflation, high levels of poverty and a volatile exchange rate.
Strengths
• Foreign players already in the country continue to invest in new stores.
• Formal and informal wholesalers co-exist throughout the country and are able to service a variety of markets.
• Investors can repatriate dividends, management fees, interests, profits and royalties.
• There are no restrictions on foreign investment in any sector.
Weaknesses
• Delay of payments by debtors is a common problem particularly from government ministries and parastatals.
• Distribution of food is hampered by poor road infrastructure, which makes transportation by road unreliable and expensive.
• High cost of credit finance.
• Regional supermarket chains dominate the formal wholesale and retail space making it difficult for local companies and SMEs to compete.
• Shortages of management and technical skills.
• The sector is reliant on imported foodstuffs.
Opportunities
• Increased local supply of produce because of increased agriculture potential.
• Increased use of online shopping platforms.
• Road infrastructure projects could result in improved import and export opportunities.
• The growing urban population and middle class.
Threats
• High inflation can affect disposable incomes.
• Volatile exchange rate, which has impact on retailers given high levels of imported goods.
• Vulnerability to climate change will result in persistent droughts that will affect the supply of hydro-electricity and a reduction in agricultural produce.
Outlook
• Retail chains see the Zambian retail market as important, although they have faced operational challenges.
• Online shopping is a growing but niche market, currently, and ecommerce is extending retail services to small towns and rural areas where there is limited availability of goods.
• Revenue in the food sector is expected to grow strongly between 2022-2025 on the back of increased spending supported by increasing economic activity, rising disposable income and growing middle class.
• Urbanisation will continue to increase, creating more demand and business opportunities in urban areas.
The Wholesale and Retail of Food Industry in Zambia
2022
Full Report
R 9 500.00(ZAR) estimated $495.46 (USD)*
Industry Landscape
R 6 650.00(ZAR) estimated $ 346.82 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. COUNTRY INFORMATION | 1 | |
| 2. | DESCRIPTION OF THE INDUSTRY | 3 |
| 2.1. | Industry Value Chain | 4 |
| 2.2. | Geographic Position | 7 |
| 2.3. | Size of the Industry | 7 |
| 2.4. | Key Success Factors and Pain Points | 8 |
| 3. | LOCAL | 9 |
| 3.1. | State of the Industry | 9 |
| 3.2. | Key Trends | 12 |
| 3.3. | Notable Players | 12 |
| 3.4. | Trade | 16 |
| 3.5. | Corporate Actions and Developments | 18 |
| 3.6. | Regulations | 19 |
| 3.7. | Enterprise Development and Social Economic Development | 22 |
| 4. | AFRICA | 23 |
| 5. | INTERNATIONAL | 29 |
| 6. | INFLUENCING FACTORS | 35 |
| 6.1. | COVID-19 | 35 |
| 6.2. | Economic Environment | 36 |
| 6.3. | Labour | 36 |
| 6.4. | Environmental Issues | 38 |
| 6.5. | Technology, Research and Development (R&D) and Innovation | 38 |
| 6.6. | Government Support | 39 |
| 6.7. | Input Costs | 40 |
| 6.8. | Electricity Supply Constraints | 41 |
| 6.9. | Road Infrastructure and Transport System | 41 |
| 6.10. | Crime and Security | 42 |
| 6.11. | Copper Prices | 42 |
| 7. | COMPETITIVE ENVIRONMENT | 42 |
| 7.1. | Competition | 42 |
| 7.2. | Barriers to Entry | 43 |
| 8. | SWOT ANALYSIS | 43 |
| 9. | OUTLOOK | 44 |
| 10. | INDUSTRY ASSOCIATIONS | 44 |
| 11. | REFERENCES | 45 |
| 11.1. | Publications | 45 |
| 11.2. | Websites | 46 |
| APPENDIX 1 | 47 | |
| Summary of Notable Indigenous and Foreign Players | 47 | |
| COMPANY PROFILES | 49 | |
| Choppies Supermarkets Ltd | 49 | |
| Food Lovers Holdings (Pty) Ltd | 51 | |
| Massmart Holdings Ltd | 55 | |
| Melisa Supermarket Ltd | 61 | |
| OMG Group Holdings Ltd | 62 | |
| Pick n Pay Stores Ltd | 65 | |
| Promasidor (Zambia) Ltd | 70 | |
| Seapride Foods Zambia Ltd | 72 | |
| Shoprite Holdings Ltd | 73 | |
| SPAR Zambia Ltd | 79 | |
| Woolworths (Pty) Ltd | 81 | |
| Zambeef Products PLC | 84 |
