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.\r\n\r\nWith 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.
The Wholesale and Retail of Food Industry in Angola
2020
Full Report
R 1 900.00(ZAR) estimated $107.74 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 75.42 (USD)*
Historical Reports
The Wholesale and Retail of Food Industry in Angola 2015-04-27
R 1 900.00(ZAR) estimated $107.74 (USD)*
View Report Add to CartTable 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 |
