Angola and Mozambique among African countries with best growth prospects

A building stands in the city of Malanje, Angola

Angola and Mozambique are on the list of African countries with better prospects for economic growth and business opportunities, according to a study by the Nielsen consultancy that surveyed executives in Africa.
In the first edition of the “Africa’s Prospects” study on the macroeconomic climate, business and consumer and retail indicators for the first quarter 2015, Mozambique is ranked in third place in terms of growth prospects and opportunities for companies, behind Ethiopia and Ivory Coast.
In the study of 26 African countries, Angola is in fifth place with a score of 6.3 (the same as Kenya and 0.1 percentage points below Mozambique) with the capacity for growth offset by “several operational challenges to be overcome by the companies.”
While economic growth in Mozambique is estimated at 7 percent, in Angola’s case the study includes an estimate of 4.4 percent, up from some of the latest downward revisions for the Angolan economy, due to prolonged low oil prices.
The Nielsen study said Angolan consumers were struggling with higher inflation rates, similarly to Ghanaians and Nigerians.
The consumer goods basket used by Nielsen puts Angola as the most expensive country, with a total cost of USD31.97, ahead of Ivory Coast and Ghana, while the list of the cheapest countries is topped by Uganda, Lesotho, Botswana and Swaziland.
The study stresses the growing importance of African economies, particularly in Southern Africa, which are growing faster than those of developed countries, and these countries as consumer markets, with a population increase above the global average.
Although the business climate is often difficult for companies, these countries have been making reforms, which is reflected in their rise in the business climate index prepared by the World Bank.
Angola and Mozambique have been attracting large international retail chains, with a study by AT Kearney placing them among the 15 most attractive African countries for this type of investment.
The consultancy puts Angola in third place among the most attractive African countries for international retail chains and Mozambique emerged as the 15th most attractive, taking into account factors such as the size of the urban population, enterprise efficiency and risk for investors.
Due to the sharp expansion of the population and increase in average income, Angola has attracted chains such as South Africa’s Spar, following the example of its compatriot Shoprite, after Brazil’s Odebrecht was called up by the government for a partnership for the logistics management of state chain Nosso Super.
The Chinese community is strongly represented in retail trade in Angola and Mozambique and has been investing in large stores.
In Mozambique there is a new hypermarket managed by the “Number One Supermarket, Lda” company and offers food, beverages, household appliances and others, an investment of US$2 million in the city of Quelimane, capital of Zambézia province. MDT/Macauhub