Report Coverage
The report on the Wholesale and Retail of Food in Zambia examines current conditions, the dependence of retailers on imported produce and factors that influence the success of the sector. Profiles are provided for ten wholesalers and retailers including the three main retailers, South African companies Shoprite, Spar and Pick ‘n Pay. Also profiled is local company, Zambeef Products Plc which operates the butcheries at Shoprite outlets as well as its own outlets. In a recent development Zambeef has begun rolling out its new “macro” outlets which offer meat, dairy and eggs alongside stock feed and day-old-chicks in strategic locations. It has plans to establish these outlets throughout the country.
Introduction
This report focuses on the wholesale and retail of food in Zambia, a sector that is dominated by the informal sector with an estimated 70% of households sourcing their food through traditional small stalls, informal shops and kiosks, street vendors and marketplaces. The formal grocery retail sector is dominated by foreign regional supermarket chains and was estimated to be worth US$12.85bn in 2016. Growth in the sector is supported by Zambia’s growing economy, rapid urbanisation and the increasing population. However, the landlocked country still faces significant socio-economic challenges, with more than 60% of the population living below the poverty line.
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
• Efficiencies are hampered by poor infrastructure for processing, storage and distribution of food.
• For the formal sector, 70% of food is sold through informal channels.
• Limited access to credit and the high cost of finance.
• Retail outlets are underdeveloped.
• Shortages of management and technical skills.
• The formal wholesale and retail sector is dominated by foreign regional supermarket chains.
• The sector is reliant on imported foodstuffs.
Opportunities
• Mobile technology innovation for online shopping.
• Growth in retail developments in urban areas.
• Increased supply of produce from local suppliers as a result of increased agricultural potential.
• Proposed and current transport infrastructure projects could result in improved import and export opportunities.
• The growing urbanised middle class.
Threats
• Exchange rate volatility which impacts particularly negatively on the retail industry, given its high level of exposure to imported inputs.
• Power insecurity poses a threat to the food sector.
• Weakening of the economy and increasing inflation which could negatively affect disposable consumer income.
Outlook
Estimates are that Zambia’s GDP growth will stabilise at around 4.5% per year in 2017 and 2018 while inflation is expected to decrease to approximately 6% for the next two years. Together with rapid urbanisation and a growing middle class these factors are likely to result in increased spending on food. Some analysts forecast that consumer spending in Zambia will almost double in the next few years as a result of urbanisation, thus creating growth and more business opportunities for the food wholesale and retail sector. However, the country remains vulnerable to exchange rate volatility which impacts particularly negatively on the retail industry, given its high level of exposure to imported inputs.
The Wholesale and Retail of Food in Zambia
2017
Full Report
R 1 900.00(ZAR) estimated $105.41 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 73.79 (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 | 7 |
| 5. | STATE OF THE INDUSTRY | 9 |
| 5.1. | Local | 9 |
| 5.1.1. | Corporate Actions | 12 |
| 5.1.2. | Regulations | 12 |
| 5.1.3. | Enterprise Development and Social Economic Development | 16 |
| 5.2. | Continental | 17 |
| 5.3. | International | 20 |
| 6. | INFLUENCING FACTORS | 22 |
| 6.1. | Government Interventions | 22 |
| 6.2. | Economic Environment | 24 |
| 6.3. | Input Costs | 24 |
| 6.4. | Road Conditions and Transport Infrastructure | 24 |
| 6.5. | Technology, Research and Development (R&D) and Innovation | 25 |
| 6.6. | Labour | 26 |
| 6.7. | Crime and Security | 27 |
| 6.8. | Electricity Supply Constraints | 28 |
| 7. | COMPETITION | 28 |
| 7.1. | Barriers to Entry | 29 |
| 8. | SWOT ANALYSIS | 29 |
| 9. | OUTLOOK | 30 |
| 10. | INDUSTRY ASSOCIATIONS | 30 |
| 11. | REFERENCES | 31 |
| 11.1. | Publications | 31 |
| 11.2. | Websites | 32 |
| COMPANY PROFILES | 34 | |
| CHOPPIES SUPERMARKETS LTD | 34 | |
| FRUIT AND VEG CITY HOLDINGS (PTY) LTD | 36 | |
| MASSMART HOLDINGS LTD | 39 | |
| OMG GROUP HOLDINGS LTD | 45 | |
| PICK N PAY STORES LTD | 47 | |
| PROMASIDOR ZAMBIA LTD | 52 | |
| SHOPRITE HOLDINGS LTD | 54 | |
| SPAR ZAMBIA LTD | 58 | |
| WOOLWORTHS (PTY) LTD | 60 | |
| ZAMBEEF PRODUCTS PLC | 63 |
