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Wholesale and Retail of Food in Angola 2015

  • April 2015
  • 47 pages
  • Who Owns Whom
Report ID: 2998206

Summary

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The Angolan Market : Between 70% and 80% of trade in the food market is undertaken by the informal sector via street vendors and unregulated markets that tend to specialise in one product category. The formal sector, which comprises a mix of small neighbourhood markets, grocery stores, specialist high-end food stores and supermarkets, is encroaching rapidly on the informal sector with the expansion of stores owned by Angolans, as well as stores owned by foreign retail chains.


Dependence on Imports: Angola’s food industry was almost entirely dependent on imports in the 1980s and until 2013 it was estimated that more than 90% of all food products in retail stores was imported. However, this percentage has decreased to an estimated 60% as a result of import tariffs on a variety of foodstuffs as well as substantial government and private investment in the production of vegetable oils and soft drinks as well as brewing, flour milling and sugar processing.




Challenging Conditions:
Angola has a generally unfavourable regulatory environment and it is difficult to do business in the country. In the World Bank’s Doing Business 2015 index it was ranked 181st out of 189 countries, scoring particularly poorly on resolving insolvency, enforcing contracts, getting credit, trading across borders, registering property, getting electricity, and paying taxes. Although food retail is regarded as a high risk market because of state bureaucracy and corruption, the many infrastructural challenges and major skills shortages, the formal food sector is growing. The phenomenal growth of Angola’s oil industry over the last decade, the growth in the country’s middle class and the large increase in population means that spending on food is expected to reach almost US$20bn in 2015.


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.

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