Business
Three interesting countries to consider when investing in African retail
Various international retailers – from supermarket giants like Wal-Mart to clothing chains such as Gap – have recently entered the African market, targeting the continent’s growing middle class. However, with 54 independent countries, deciding which markets to enter is not an easy decision. Research company Euromonitor International recently identified a number of African countries with growth potential in the retail sector. We take a closer look at three of these markets – Rwanda, Zambia and Angola.
1. Angola
Angola, South West Africa
After decades of civil war that destroyed infrastructure and ruined the economy, Angola had nowhere to go but up.
The return of peace in 2002 led to significant economic growth, albeit from a very low base. According to The Economist, Angola experienced an average annual GDP growth of 11.1 percent between 2001 and 2010, largely sustained by the oil industry.
“In 2011, it was the second largest African oil producer, with China its main client,” says Euromonitor. “Rising oil prices over the past five years have translated into nearly 55 percent gross domestic product (GDP) growth, enabling Angola to climb from being a low to a middle-income country.”
