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wholesale retail food industry ivory coast

The Wholesale and Retail of Food Industry in Ivory Coast 2017

Nina Shand | Ivory Coast | 30 October 2017

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Report Coverage

The report on the Wholesale and Retail of Food in Côte d’Ivoire examines current conditions and developments as well as factors that influence the success of the sector. Profiles are provided for four retailers including the largest player, Prosuma which employs approximately 3,600 people in a total of 56 stores situated mainly in densely populated urban areas. Six stores are currently under construction, four in the capital Abidjan, and one wholesale and one retail store situated further inland. Prosuma is also looking to bolster its low-end offering of discount mini-markets, with plans to open new Bonprix and Miniprix stores in small towns across the country.

Introduction

This report focuses on the wholesale and retail of food in Côte d’Ivoire (Ivory Coast), a country that has experienced one of the highest growth rates in Africa in recent years. The economy more than doubled over the past decade to US$36.1bn in 2016. The food industry contributed 7.1% or US$2.56bn to GDP and the food wholesale and retail sector is expected to be the fastest-growing in Africa until 2020. Although the majority of food is still purchased through traditional markets, there is an increasing demand for the convenience and variety offered by formal retail and supermarkets, currently dominated by local grocery chains.

Strengths

• There are formal and informal wholesalers and retailers throughout the country, able to service a variety of markets.
• There is increasing foreign investment in food retail and in formal retail space.

Weaknesses

• For the formal sector, more than 80% of food is sold through informal channels.
• Limited access to credit and the high cost of finance.
• Low-income earners especially in rural areas.
• Shortages of management and technical skills.
• The sector is reliant on imported foodstuffs.

Opportunities

• Côte d’Ivoire is currently the fastest-growing economy in Africa and is one of the best-performing consumer markets in sub-Saharan Africa.
• For formal retailers, the growing urbanised middle class.
• In the next five years, per capita grocery retail spend is expected to increase by 24.6%.
• Increased supply of produce from local suppliers as a result of increased agricultural potential.
• Mobile technology innovation for online shopping.
• More formal retail space available in several new shopping centres.
• Potential market in secondary towns and rural areas once incomes increase.
• Trade barriers such as tariffs are being progressively lowered, paving the way towards a freer trade environment.

Threats

• A resurgence of violence like that experienced during the civil war.
• Economic downturn.

Outlook

Estimates are that GDP growth in Côte d’Ivoire will continue to be around 7% per year in 2017 and 2018 while inflation is expected to remain at 1.5% until 2020. Coupled with rapid urbanisation and a growing middle class, these factors are likely to result in increased spending on food. In the next five years per capita grocery retail spend is expected to increase by 24.6%, and by 2050 it is anticipated that 20 million more Ivorian consumers will live in urban areas. Prospects for growth and business opportunities in the food wholesale and retail sector are thus viewed as promising, especially for international Francophone retailers.

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The Wholesale and Retail of Food  Industry in Ivory Coast
The Wholesale and Retail of Food Industry in Ivory Coast 2017

Full Report

R 1 900.00(ZAR) estimated $103.15 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.20 (USD)*

Table of Contents

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PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 5
4. SIZE OF THE INDUSTRY 6
5. STATE OF THE INDUSTRY 9
5.1. Local 9
5.1.1. Corporate Actions 11
5.1.2. Regulations 11
5.1.3. Enterprise Development and Social Economic Development 15
5.2. Continental 16
5.3. International 18
6. INFLUENCING FACTORS 20
6.1. Government Interventions 20
6.2. Economic Environment 21
6.3. Road Conditions and Transport Infrastructure 22
6.4. Corruption and Bribery 24
6.5. Technology, Research and Development (R&D) and Innovation 24
6.6. Labour 25
7. COMPETITION 26
7.1. Barriers to Entry 27
8. SWOT ANALYSIS 27
9. OUTLOOK 28
10. INDUSTRY ASSOCIATIONS 29
11. REFERENCES 29
11.1. Publications 29
11.2. Websites 30
COMPANY PROFILES 32
COMPAGNIE DE DISTRIBUTION OF COTE D'IVOIRE 32
MATA HOLDING PLC 34
SOCIETE DES MARQUES DE LA REPUBLIQUE DE COTE D'IVOIRE 35
SOCIETE IVOIRIENNE DE PROMOTION DE SUPERMARCHES 37