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.
Introduction
This report focuses on the wholesale and retail of food in Tanzania. The East African country lacks a formal shopping culture and it is estimated that up to 90% of food sales occur through traditional small stores, street vendors and unregulated markets. People buy groceries when they need them, sometimes shopping three times a day, with small informal retailers often breaking down stock and selling small quantities. Although there are many challenges facing the formal retail sector, analysts view Tanzania as one of the top ten grocery retail “battlegrounds” in Africa.
Strengths
• The relative lack of consolidation in the grocery retail market makes the country appealing for long-term retail investment.
• The sector encourages foreign investment.
Weaknesses
• Infrastructure limitations, which have resulted in distribution and supply problems.
• Only leasehold is available to foreigners.
• The formal sector lacks a skilled workforce.
• The high cost of doing business.
• The informal sector is responsible for an estimated 90% of trade in food.
• The lack of a formal retail culture.
Opportunities
• A shopping mall culture is slowly developing in Dar es Salaam and a number of shopping malls are soon to be constructed or expanded.
• Establishment of a Cash and Carry retail model.
• Government’s investment into transport infrastructure should open up new markets for the wholesale and retail of food.
• The number of middle class consumers is growing, which should lead to an increase in formal retail.
Threats
• Increasing cost of food could limit the growth of formal retail.
• Increasing levels of corruption along the entire value chain, making it difficult for the expansion of formal retail.
• Security issues.
Outlook
Estimates are that Tanzanian GDP growth will stabilise at around 7% per year in 2017 and 2018 signalling promising long-term prospects for foreign investment. The decrease in inflation to approximately 5% in 2015/16 is likely to continue over the next two years resulting in increasing food spend. Rapid urbanisation is expected to double the number of consumers in larger cities such as Dar es Salaam by 2050 and the relative lack of consolidation in the retail sector means the landscape is wide open for foreign investors. PwC forecasts that consumer spending patterns in Tanzania will almost double in the next few years creating growth and more business opportunities for the food wholesale and retail sector.
The Wholesale and Retail of Food in Tanzania
2017
Full Report
R 1 900.00(ZAR) estimated $101.44 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 71.01 (USD)*
Table of Contents
[ Close ]| 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 |
