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Wholesale and Retail of Food in Tanzania
BY Nina Shand
Tanzania
24 February 2017
R 6 960.00 (ZAR)  
estimated $ 488.45 (USD) *
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The Tanzanian Food wholesale and Retail Sector


Tanzania lacks a formal retail shopping culture and it is estimated that up to 90% of food sales occur through traditional small stores, street vendors and unregulated markets. Since the 1990s there has been some growth in formal wholesale and retail of food in major towns and cities where supermarkets tend to serve largely expatriate and middle class communities, often with a range of products imported from Kenya, Dubai, India and Europe.


A Challenging Environment


Although Tanzania is the second-largest economy in the East African Community (EAC) and the twelfth-largest in Africa, estimates are that 37% of people in gainful employment still fall below the poverty line. A high level of corruption, bureaucracy and complicated land rights poorly protect investors and act as a deterrent to investors establishing operations in the country. Given the vast geographical area of Tanzania and the lack of transport infrastructure, supermarkets are confronted with distribution problems. Moving goods is prohibitively expensive and it is often cheaper to import through the port at Dar es Salaam than to transport goods by road. It is also difficult to consistently source goods that are of good quality and in sufficient quantities as domestic farmers and suppliers tend to be informal and unregulated.


Report Coverage


The Tanzanian Food Wholesale and Retail report examines current conditions and the business environment which is complicated and remains a major drawback to investment in the formal retail sector. Profiles are provided for foreign retailers such as South African brands Game and Fruit and Veg City, Botswana’s Choppies and Nakumatt, Kenya’s largest food retailer, which bought three former Shoprite stores, two in Dar es Salaam and one in Arusha in a deal worth US$45.5m in 2015. Local brands including TSN Supermarket Ltd, Shoppers, Shrijees and Mbenzi Fresh Supermarket are also profiled in this report.


Page
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Value Chain 4
4. SIZE OF THE INDUSTRY 6
5. STATE OF THE INDUSTRY 9
5.1. Local 9
5.1.1. Corporate Actions 10
5.1.2. Regulations 11
5.2. Continental 13
5.3. International 16
6. INFLUENCING FACTORS 18
6.1. Economic Environment 18
6.2. Rising Operating Costs 19
6.3. Government Initiatives 19
6.4. Infrastructure 20
6.5. Technology, Research and Development (R&D) and Innovation 21
6.6. Labour 22
6.7. Seasonality 24
6.8. Urbanisation 24
6.9. Corruption 24
6.10. Electricity Supply Constraints 25
7. COMPETITION 27
7.1. Barriers to Entry 28
8. SWOT ANALYSIS 29
9. OUTLOOK 29
10. INDUSTRY ASSOCIATIONS 30
11. REFERENCES 31
11.1. Publications 31
11.2. Websites 31
COMPANY PROFILES 33
CHOPPIES ENTERPRISES LTD 33
FRUIT AND VEG CITY HOLDINGS (PTY) LTD 40
MASSMART HOLDINGS LTD 43
MBEZI FRESH SUPERMARKET 50
NAKUMATT HOLDINGS LTD 51
QUALITY GROUP LTD 53
SHOPPERS SUPERMARKET LTD 56
SHRIJEE TRADERS LTD 57
TSN SUPERMARKET LTD 58
VILLAGE SUPERMARKET LTD 59