Report Coverage
The report on the Wholesale and Retail of Food in the Democratic Republic of Congo examines current conditions, the dependence of formal retailers on imported produce and factors that influence the success of the sector. Profiles are provided for the four major retailers including the Hyper-Psaro Sarl Group which has five hypermarkets and imports more than 20,000 products from Europe and South Africa. It has its own transport company, a licence to manufacture various products from Nestle, Unilever and Parmalat, and owns a commercial farm that cultivates produce for its own supermarkets as well as the general public.
Introduction
The focus of this report is the wholesale and retail of food in the Democratic Republic of the Congo (DRC), a country that has a population of more than 81 million people. Although there has been some growth in the formal sector, with the country importing food to the value of US$903m each year, most food sales occur in the informal sector. The business operating environment is seen by English-speaking retail chains as challenging given the regulatory constraints, corruption, dysfunctional infrastructure and difficulties with the French language. A decline in export earnings has caused economic activity to decelerate and inflation is expected to be in the region of 40% for the duration of 2017.
Strengths
• In the formal sector there are local and international wholesalers and retailers.
• The informal sector provides a livelihood for women and SMMEs.
Weaknesses
• Corruption along the entire value chain makes it difficult for investment in, and the expansion of, formal retail.
• DRC’s food retail industry is dominated by the informal sector.
• Formal retail outlets are underdeveloped.
• Lack of investment in training the workforce.
• Limited access to credit and the high cost of finance for SMMEs.
• The formal retail of food is hampered by poor infrastructure for the processing, distribution and storage of produce.
• The sector is reliant on imported foodstuffs.
Opportunities
• DRC is one of the major recipients of donor support worldwide, which could lead to reduction in poverty levels and an increase in spending on food by the 80 million inhabitants.
• More formal retail space available in several new shopping centres in various stages of completion.
• Proposed and current transport infrastructure projects could result in improved import and export opportunities.
• Rising urbanisation, together with the emerging middle class, could increase demand for formal food retail.
Threats
• Further depreciation of the Congolese currency.
• High and increasing food inflation will contain consumer spending.
• Political instability, the elections in early 2018 and outbreaks of armed conflict in parts of the country.
• Power insecurity poses a threat to the food sector.
Outlook
Informal trade is likely to continue to be the dominant form of retail in DRC for some time to come. Despite increasing levels of urbanisation, the majority of the population lives below the poverty line, and the emerging middle class remains very small and comprises mainly expatriates and government employees. Analysts believe that improvements will need to be made to the difficult business operating environment if retail is to grow. Although the DRC Central Bank initially estimated growth in 2017 would be in the region of 4.0%, it revised this mid-year to 3.1%. Year-end inflation was expected to stand at 33%, up from 25% of 2016 as the Congolese currency further depreciated against the dollar. Global Risks Insights reported that some current investors, who have managed to continue doing business in the country despite the poor climate, are starting to look at a possible move away. Meanwhile new investors are likely to adopt a wait and see attitude until after the April 2018 elections.
The Wholesale and Retail of Food Industry in the DRC
2017
Full Report
R 1 900.00(ZAR) estimated $98.97 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 69.28 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | COUNTRY INFORMATION | 1 |
| 2.1. | Geographic Position | 3 |
| 3. | DESCRIPTION OF THE INDUSTRY | 4 |
| 3.1. | Industry Value Chain | 5 |
| 4. | SIZE OF THE INDUSTRY | 7 |
| 5. | STATE OF THE INDUSTRY | 8 |
| 5.1. | Local | 8 |
| 5.1.1. | Regulations | 11 |
| 5.1.2. | Enterprise Development and Social Economic Development | 13 |
| 5.2. | Continental | 14 |
| 5.3. | International | 16 |
| 6. | INFLUENCING FACTORS | 19 |
| 6.1. | Road Conditions and Transport Infrastructure | 19 |
| 6.2. | Economic Environment | 20 |
| 6.3. | Government Initiatives | 21 |
| 6.4. | Labour | 22 |
| 6.5. | Corruption and Bribery | 23 |
| 6.6. | Electricity Supply Constraints | 24 |
| 7. | COMPETITION | 25 |
| 7.1. | Barriers to Entry | 25 |
| 8. | SWOT ANALYSIS | 26 |
| 9. | OUTLOOK | 27 |
| 10. | INDUSTRY ASSOCIATIONS | 27 |
| 11. | REFERENCES | 28 |
| 11.1. | Publications | 28 |
| 11.2. | Websites | 28 |
| COMPANY PROFILES | 30 | |
| GROUPE JAMBO SPRL | 30 | |
| HYPER-PSARO SARL | 32 | |
| SHOPRITE HOLDINGS LTD | 34 | |
| STE BISO NA BISO SARL | 38 |
