Who Owns Whom

wholesale retail food industry angola

The Wholesale and Retail of Food Industry in Angola 2020

Duncan Bekker | Angola | 31 January 2020

The Wholesale and Retail of Food Industry in Angola 2015

Ingi Salgado | Angola | 27 April 2015

Enquire about this report

Report Coverage

This report on the wholesale and retail of food in Angola includes information on the state and size of the industry and various factors that influence it including the currency, commodity prices and the state of imports. There are profiles of 10 companies including Nosso Super, which is owned by the Angolan government but privately managed, South Africa’s Shoprite and the Swiss Webcor Group, which operates import and distribution company Angoalissar and a smaller supermarket. Others include Zahara, which owns the Kero brand and Contidis, which owns Candando.

Introduction

This report focuses on the wholesale and retail of food in Angola, one of Africa’s key long-term consumer markets. The sector contributes over 18% to GDP and, including the large informal market, creates over 1.7 million jobs. Before the decline in world oil prices, Angola enjoyed sustained double-digit growth and ongoing investment in formal retail capacity from players looking to secure a first-mover advantage in an immature industry. Expansion has slowed since 2016 as economic headwinds and inflation have weighed on consumer spending. There have nevertheless been a number of significant investments into supermarkets and food manufacturing capacity.

Strengths

• A small but very wealthy affluent class in key cities such as Luanda.
• Angolan agriculture has the potential to be very productive.
• Formal market concentration is low.
• Government committed to diversification of the economy.
• Growing population and emerging middle class present food retailers with a dynamic consumer base.
• Large retailers already have a substantial footprint in urban areas from which to expand.

Weaknesses

• Foreign currency shortages.
• High levels of informal and subsistence farming.
• High levels of poverty and inequality mean that the average Angolan has little purchasing power.
• Oil-dependent economy vulnerable to commodity price shocks.
• Perceptions of corruption.
• Poor quality trade infrastructure.
• Relatively unfriendly business regulations (although showing improvement).
• Shortage of skills.
• Very little local food manufacturing capacity.
• Very reliant on food imports.

Opportunities

• Emerging middle-class will drive demand for formal retail and shopping malls.
• Government support programmes and increasing investment in downstream agriculture and food manufacturing.
• Heavy government investment in infrastructure development.
• Liberalisation of investment, labour, and competition regulations creating more attractive conditions for new entrants.
• Market immaturity may provide early investors with a first-mover advantage as the retail sector grows.
• Possibility of replacing imports with locally procured foods.
• The expansion of e-commerce as internet penetration rises.

Threats

• Consumers slow to shift their shopping to formal channels.
• Import restrictions and tariffs as part of government strategy to support local producers.
• Low growth and high inflation may continue to undermine potential consumer spending.
• Ongoing depreciation of the local currency.
• Rising input and operating costs attributable to fuel, electricity, labour, imports, and value added tax.
• Sustained weakness in oil prices.

Outlook

The Angolan grocery sector depends on sustained economic growth to buoy consumer spending, support a middle-class, and drive demand for formal outlets. Angola’s economy is forecast to contract once again in 2019; and pessimistic analysis suggests that it may see growth only in 2021. Relatively high internal inflation and the kwanza’s continued depreciation against the dollar have greatly increased retailers’ costs, particularly at large supermarkets where the product range is primarily imported. In the low-growth environment, companies such as Shoprite and Maxi have been unable to pass these costs onto consumers and have had to subsidise prices at the expense of profits. Grocery players do not expect the operating environment to improve significantly in the short term. With the exception of the recent supermarket entrant, Candando, the expansion of established brands and retail real estate has slowed. There has however been meaningful investment in agriculture and food manufacturing capacity which is expected to result in wider availability of local inputs in the future. The Angolan government has implemented a number of key private sector investment, competition, and labour market reforms aimed at increasing the attractiveness of Angola as an investment destination in the future.

Read More..
The Wholesale and Retail of Food Industry in Angola 2020

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The Wholesale and Retail of Food Industry in Angola 2015-04-27

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 2
3.1. Industry Value Chain 4
3.2. Geographic Position 6
4. SIZE OF THE INDUSTRY 7
5. STATE OF THE INDUSTRY 10
5.1. Local 10
5.1.1. Corporate Actions 18
5.1.2. Regulations 19
5.1.3. Enterprise Development and Social Economic Development 20
5.2. Continental 21
5.3. International 27
6. INFLUENCING FACTORS 28
6.1. Economic Environment 28
6.2. Underdeveloped Infrastructure 29
6.3. Rising Costs 30
6.4. Labour 31
6.5. Environmental Concerns 32
6.6. Technology, Research & Development (R&D), and Innovation 33
7. COMPETITION 34
7.1. Barriers to Entry 36
8. SWOT ANALYSIS 36
9. OUTLOOK 37
10. INDUSTRY ASSOCIATIONS 38
11. REFERENCES 38
11.1. Publications 38
11.2. Websites 39
APPENDIX 1 41
Summary of Notable Players 41
COMPANY PROFILES 42
CONTIDIS LTDA 42
NOBLE GROUP S.A. 44
NOSSO SUPER GESTAO DE SUPERMERCADOS LTDA 46
POMOBEL LTDA 49
REFRIANGO S.A. 51
SCORE DISTRIBUICAO S.A. 54
SHOPRITE HOLDINGS LTD 56
TEIXEIRA DUARTE S.A. 61
WEBCOR S.A. 65
ZAHARA COMERCIO S.A. 68

Report Coverage

The Wholesale and Retail of Food in Angola investigates the local food market, government attempts to lessen the country’s reliance on food imports and factors influencing the success of the formal food wholesale and retail sector. The report also profiles seven retailers, including the Portuguese Teixeira Duarte group trading under the Maxi and Dakaza brands and South African giant, Shoprite Holdings, which opened its first store in Angola in 2007.

Introduction

Angola’s retail and wholesale market is expected to reach US$30bn in 2015 and an estimated two-thirds of this will be spent on food. Food retail is regarded as a high risk market in which retailers face state bureaucracy and corruption, infrastructural challenges, and major skills shortages. On the other hand, there are high returns from a growing middle class. The formal food retail sector has taken off alongside the phenomenal growth of Angola’s oil industry over the last decade but falling oil prices are having a negative impact on government spending on infrastructure. In 2014, Angola imposed higher import tariffs on a range of products including food, in order to stimulate the agricultural and agro-processing sectors as the country is highly reliant on food imports.

Strengths

• Increasing foreign investment in the formal food retail sector.
• The sector serves a young, rapidly growing population.

Weaknesses

• An estimated 60% of food consumed in Angola is imported.
• Efficiencies of the retail sector are hampered by poor infrastructure.
• High cost of living and of doing business.
• Lack of well educated skilled labour.

Opportunities

• A growing middle class in a country with sustained and above-average GDP growth.
• Mobile technology innovation for online shopping.
• More food available locally because of Government’s focus on agriculture and agro-processing.

Threats

• Corruption and weak legal system.
• Lower oil prices which will curb spending and negatively affect economic growth.
• The growing formal sector threatens the success of smaller retailers and parts of the informal sector.

Outlook

Angola’s formal retail market is becoming more competitive as more retailers enter the market. Stakeholders expect that small retailers and some participants in the informal sector will be displaced as customer loyalty is targeted via retail brands, faster and better service, as well as store location and design. Continued low oil prices are expected to reduce spending and negatively affect economic growth, and while import tariffs will help the development of the agricultural and agro-processing sectors, tariff protection may result in increasing prices within the food retail sector.

Read More..
The Wholesale and Retail of Food Industry in Angola 2015

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The Wholesale and Retail of Food Industry in Angola 2020-01-31

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 9
4.1. Local 9
4.1.1. Corporate Actions 12
4.1.2. Regulations 12
4.2. Continental 14
4.3. International 16
5. INFLUENCING FACTORS 18
5.1. Economic Environment 18
5.2. Lack of Infrastructure 18
5.3. Corruption 20
5.4. Labour Resources 20
5.5. Information Technology 21
5.6. Seasonality 21
5.7. Environmental Concerns 22
6. COMPETITION 22
6.1. Technology, Research and Development (R&D) and Innovation 22
7. SWOT ANALYSIS 23
8. OUTLOOK 23
9. INDUSTRY ASSOCIATIONS 24
10. REFERENCES 24
10.1. Publications 24
10.2. Websites 25
COMPANY PROFILES 26
Nosso Super Gestao de Supermercados Lda 26
Pomobel Lda 28
Score Distribuicao SA 29
Shoprite Holdings Ltd 30
Spar Group Ltd (The) 36
Teixeira Duarte SA 41
Zahara Trade SA 44