UNCOVERING THE SADC RETAIL OPPORTUNITY. Vicus Bouwer Divisional Director Retail Leasing Africa Broll Property Group

Transcription

1 UNCOVERING THE SADC RETAIL OPPORTUNITY Vicus Bouwer Divisional Director Retail Leasing Africa Broll Property Group

2 OVERVIEW Despite an economic slowdown in Mozambique, Zambia, Botswana development in and the Angola regions interest retail and sectors continues to grow. Interest is coming from master franchises entering and expanding, International retailer interest in Angola, global brands taking aim and continued South African local retailer and developer expansion into the region.

3 HOW THE WORLD SEE AFRICA

4 HOW THE WORLD SEE AFRICA Prime Real Estate

5 HOW THE WORLD SEE AFRICA Retail Brands

6 HOW THE WORLD SEE AFRICA

7 HOW THE WORLD SEE AFRICA Housing

8 HOW THE WORLD SEE AFRICA Transport Infrastructure

9 HOW WE SEE AFRICA Prime Real Estate

10 HOW WE SEE AFRICA Retail Brands

11 HOW WE SEE AFRICA Housing Kilamba - Luanda

12 HOW WE SEE AFRICA Transport Infrastructure Allo Taxi - Luanda

13 INTRODUCTION There are still brands looking to enter the markets. DRC Shoprite to open in Lubumbashi Angola Sonae Brands have entered the market with Worten, Zippy, Mo and Sports Zone. Following brands still to open have committed to new developments Max, Lifestyle and Mango

14 INTRODUCTION Mozambique Sonae has entered the market with Zippy and Mo. Continent to open end of the year. Pizza Hut opened in Mozambique. Ocean Basket and Mugg n Bean is set to open end of this year Other retail brands are looking to enter the market

15 POPULATION (MILLION) *ANGOLA MOZAMBIQUE *DRC Source: World Bank

16 POPULATION (MILLION) *ANGOLA MOZAMBIQUE *DRC NAMIBIA ZAMBIA *ZIMBABWE GHANA KENYA SOUTH AFRICA Source: World Bank

17 GDP (THOUSANDS) ANGOLA MOZAMBIQUE DRC Source: World Bank

18 GDP ($ Billion) *ANGOLA MOZAMBIQUE *DRC NAMIBIA ZAMBIA *ZIMBABWE GHANA KENYA SOUTH AFRICA Source: World Bank

19 GDP PER CAPITA 3,500 3,000 2,500 2,000 1,500 1, ANGOLA MOZAMBIQUE DRC Source: World Bank

20 GDP PER CAPITA 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, *ANGOLA MOZAMBIQUE *DRC NAMIBIA ZAMBIA *ZIMBABWE GHANA KENYA SOUTH AFRICA Source: World Bank

21 GUESS THE CITY

22 GUESS THE CITY

23 GUESS THE CITY LUANDA

24 LUANDA RETAIL MAP

25 ANGOLA Existing Retail ±150,000m² Retail planned to open in next 24 months ± 120,000m²

26 ANGOLA Xyami Kilamba 27,000m² Opened April 2017

27 ANGOLA Fortaleza 20,000m² Opening Q4 2017/ Q1 2018

28 ANGOLA MAIN BRANDS TRADING IN MARKET

29 ANGOLA BRANDS RECENTLY ENTERED THE MARKET

30 ANGOLA BRANDS TO ENTER THE MARKET

31 GUESS THE CITY

32 GUESS THE CITY

33 GUESS THE CITY MAPUTO

34 MAPUTO RETAIL MAP

35 MOZAMBIQUE Existing Retail ± 60,000m² Opening 2017 ± 100,000m² Planned for the next 24 Months 80,000m²

36 MOZAMBIQUE BAIA MALL 30,000m² Opening October 2017

37 MOZAMBIQUE CITY MALL 14,000m² Opening Q4:2017 Phase 1

38 MOZAMBIQUE MAIN BRANDS TRADING IN MARKET

39 MOZAMBIQUE BRANDS RECENTLY ENTER THE MARKET

40 PANEL DISCUSSION From a retailer point of view what challenges do you experience and/or what are the barriers to entering the retail sector in chosen countries? How is the local market taking to Mr Price s products in Mozambique and how different are your products there in comparison to South Africa?

41 PANEL DISCUSSION Both developers and retailers do you experience issues at customs and if so, how do you overcome these challenges? How are the customs and procurement regulations improving in these countries and how are they impacting your business?

42 PANEL DISCUSSION Do you apply for funding in country and how difficult is it to source funding for your investments in the respective countries? How has the economic and political climate in Angola and DRC impacted funding rates?

43 PANEL DISCUSSION What are your views on the outlook of your respective retail sectors in Mozambique, Angola and DRC?

44 PANEL DISCUSSION Are there any specific threats to the growth of the formal retail sector, such as the informal sector, online shopping and the middle-class size uncertainty?

45 PANEL DISCUSSION When it comes to lease agreements, are there any alternatives to the US$ leases in these countries?

46 THANK YOU Vicus Bouwer Divisional Director Retail Leasing Africa Broll Property Group