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Country foCus Angola becomes an ince the country’s “An average apartment nicely renovated extensive opportunities for retailers, with the rise in the middle class provides destructive civil war ended in and in a run-down apartment block will A-list investment s 2002, Angola has spent billions on cost approximately us$5 000 per month shoprite from south Africa among the first infrastructure and is focused on building its foreign investors to have seen the gap. paid 12 months in advance.” middle class. it is Africa’s second biggest oil Because of the fast rate of growth, the shoprite invested in Luanda in 2003, destination producer, the third largest economy in sub- authorities are pushing ahead with plans for just a year after the war ended. it now saharan Africa and one of the five fastest has 17 stores in the country and 43 more a new port on the outskirts of the capital, while at the same time modernising and growing economies in the world. outlets are planned. these factors make it a sought-after Many other retailers are making plans destination in which to do business. the expanding the existing port of Luanda. to enter Angola, including Massmart and Angola is on many an international company’s radar as its only problem is you need nerves of steel to the emerging middle class Foschini. Firstrand Bank and sanlam strong growth makes it a potentially compelling opportunity. operate successfully, because the country the eaglestone report finds that the (financial services) are looking out for opportunities in the market, as is fast-food still faces massive challenges: corruption; biggest attraction for foreign investors in But don’t underestimate the challenges. poor infrastructure; a tough business Angola is the growing middle class. the chain KFc, retailer Woolworths and liquor climate; and lack of delivery of government country is set to become one of the few giant Diageo. standard Bank is already services, to name a few. middle-income sub-saharan economies, there, as is America’s General electric and the World Bank’s 2014 ease of Doing as its GDP will grow at an annual rate of 5 china’s tBeA manufacturing group. Business survey ranks Angola 179th to 7%, the report finds. out of 189 countries, a poor position by Marketing to Angolans any standards. But because the country Advertising is a booming industry, with is developing off such a low base after one of the most pervasive forms being the war and is growing so fast, it offers outdoor billboards that seem to be opportunities in almost every area – used mainly for marketing cellphone from mining and agriculture to finance, companies. these are sprawled across communications and retail. Luanda, according to Mandy. A study by eaglestone, a Portuguese hinré smit, Development Manager investment bank specialising in sub-saharan for Africa at alcoholic beverages firm Africa, finds that Angola is achieving some Distell, says television and radio offer success in diversifying its economy by more effective advertising mediums using the proceeds from its oil riches to than billboards. speaking to the How We invest in other areas. the state has spent Made It In Africa website, she noted: around us$109-billion on infrastructure “Billboards are very expensive … tV since 2002, for example. this includes is better. it is actually cheaper for what building a railway line to the Democratic you get, but of course you need to have republic of congo, hydroelectric dams, Portuguese ads for that.” Because of airports, roads and ports. its heritage as a colony of Portugal, Luanda, the capital, shows all the signs Portuguese remains the main language of a boom town. it looks like a construction Advertising campaigns need to be of communication. site with cranes and scaffolding dotting created in Portuguese smit adds that Angolan consumers a city in desperate need of decent are aspirational and image conscious. if infrastructure, including new roads and products are priced too cheaply, many Angola is one of the low-cost housing. Country fACt file would doubt the quality. world’s fve fastest “it needs everything,” says construction Language: Portuguese Digital marketing and internet-based growing economies worker Mario da silva, who makes a living Currency: kwanza communication strategies remain in their infancy due to only about 12% of building roads. “And when we run out of roads to build, we will make money Population: 20,82-million the population having internet access, building houses.” according to the eaglestone report. even scarcity has seen property prices (World Bank, 2012) when it is available, access tends to be skyrocketing, with a hotel room costing slow and unreliable, although improving. up to us$450 per night, and office space Capital: Luanda in Luanda, marketers can reach rentals at us$100 per square metre. Gregg Gross national income per capita: consumers via television and newspapers, Right: Shoprite is among the Mandy, Director of Phoenix Business which are mainly state-owned. But supermarket giants now operating us$5 400 (World Bank, 2012) in the country services, which focuses on sourcing and elsewhere this would not work due to procurement services into Angola, notes: limited access. the most influential 42 strategicmarketingafrica Second quarter 2014 Second quarter 2014 strategicmarketingafrica 43