UNCOVERING THE SADC RETAIL OPPORTUNITY Vicus Bouwer Divisional Director Retail Leasing Africa Broll Property Group
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.
HOW THE WORLD SEE AFRICA
HOW THE WORLD SEE AFRICA Prime Real Estate
HOW THE WORLD SEE AFRICA Retail Brands
HOW THE WORLD SEE AFRICA
HOW THE WORLD SEE AFRICA Housing
HOW THE WORLD SEE AFRICA Transport Infrastructure
HOW WE SEE AFRICA Prime Real Estate
HOW WE SEE AFRICA Retail Brands
HOW WE SEE AFRICA Housing Kilamba - Luanda
HOW WE SEE AFRICA Transport Infrastructure Allo Taxi - Luanda
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
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
POPULATION 90 80 70 60 (MILLION) 50 40 30 20 10 0 *ANGOLA MOZAMBIQUE *DRC Source: World Bank
POPULATION 90 80 70 60 (MILLION) 50 40 30 20 10 0 *ANGOLA MOZAMBIQUE *DRC NAMIBIA ZAMBIA *ZIMBABWE GHANA KENYA SOUTH AFRICA Source: World Bank
GDP 90 80 70 (THOUSANDS) 60 50 40 30 20 10 0 ANGOLA MOZAMBIQUE DRC Source: World Bank
GDP 350 300 250 ($ Billion) 200 150 100 50 0 *ANGOLA MOZAMBIQUE *DRC NAMIBIA ZAMBIA *ZIMBABWE GHANA KENYA SOUTH AFRICA Source: World Bank
GDP PER CAPITA 3,500 3,000 2,500 2,000 1,500 1,000 500 0 ANGOLA MOZAMBIQUE DRC Source: World Bank
GDP PER CAPITA 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 *ANGOLA MOZAMBIQUE *DRC NAMIBIA ZAMBIA *ZIMBABWE GHANA KENYA SOUTH AFRICA Source: World Bank
GUESS THE CITY
GUESS THE CITY
GUESS THE CITY LUANDA
LUANDA RETAIL MAP
ANGOLA Existing Retail ±150,000m² Retail planned to open in next 24 months ± 120,000m²
ANGOLA Xyami Kilamba 27,000m² Opened April 2017
ANGOLA Fortaleza 20,000m² Opening Q4 2017/ Q1 2018
ANGOLA MAIN BRANDS TRADING IN MARKET
ANGOLA BRANDS RECENTLY ENTERED THE MARKET
ANGOLA BRANDS TO ENTER THE MARKET
GUESS THE CITY
GUESS THE CITY
GUESS THE CITY MAPUTO
MAPUTO RETAIL MAP
MOZAMBIQUE Existing Retail ± 60,000m² Opening 2017 ± 100,000m² Planned for the next 24 Months 80,000m²
MOZAMBIQUE BAIA MALL 30,000m² Opening October 2017
MOZAMBIQUE CITY MALL 14,000m² Opening Q4:2017 Phase 1
MOZAMBIQUE MAIN BRANDS TRADING IN MARKET
MOZAMBIQUE BRANDS RECENTLY ENTER THE MARKET
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?
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?
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?
PANEL DISCUSSION What are your views on the outlook of your respective retail sectors in Mozambique, Angola and DRC?
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?
PANEL DISCUSSION When it comes to lease agreements, are there any alternatives to the US$ leases in these countries?
THANK YOU Vicus Bouwer Divisional Director Retail Leasing Africa Broll Property Group vbouwer@broll.com