The Sunday Mail
THE African development agenda puts emphasis on the need for deeper economic integration and improved intra-continental trade.
Trade Focus
Allan Majuru
It focuses on the need to eliminate trade barriers, which have made it difficult for countries to grow their trade, despite being closer to each other.
The other key element is to transform political relations into meaningful economic benefits.
For Zimbabwe, the economic diplomacy being championed by President Mnangagwa has already given the country a head start.
The Second Republic is riding on good political relations and common membership to regional blocs in its quest to grow Zimbabwe’s share of the African market.
The new policy also targets non-traditional markets such as Angola, which have huge export potential for local value-added products.
The thriving Angolan economy and growing middle class, coupled with good political relations between Harare and Luanda, present export opportunities for local businesses.
Angola, which is also a member of the Southern African Development Community (SADC), has a population of around 35,6 million, according to the World Bank.
Its gross domestic product (GDP) stands at US$106,7 billion.
Angola imports most of the products it requires, which were valued at around US$17,7 billion last year, according to Trade Map.
Imports have been recovering after a Covid-19-induced drop in 2020 (US$9,3 billion) and 2021 (US$11,4 billion).
Imports are largely from China, Portugal, the Republic of Korea, Netherlands, Italy, the United States (US), Belgium and Brazil.
These countries have established their own niche markets, which, to some extent, are difficult to penetrate.
However, given Zimbabwe’s capacity to produce high-quality products and common membership to SADC, there is scope to penetrate Angola’s market and increase exports.
To enable local companies to take advantage of these opportunities, ZimTrade conducted a market survey of Angola to identify openings and strategic avenues for local companies.
The results indicated low-hanging fruits in processed foods, agriculture and clothing.
To further explore these opportunities, ZimTrade will participate at the SADC Industrialisation Week, scheduled for July 31- August 4, where the target will be identifying potential leading distributors of Zimbabwean products in the market.
Fast-moving consumer goods
There is high demand in Angola for fast-moving consumer goods such as meat and processed foods.
Zimbabwe’s reputation for quality goods can be used to introduce new products and increase distribution of existing ones.
There is scope to export meat (chevon and beef) to Angola, which is in high demand and is presently imported from some countries in SADC, Brazil and Argentina. Angola imported meat and edible meat offal worth US$578,9 million in 2022, up from US$355,7 million in 2021.
Countries in the region are failing to meet demand.
Currently, the top five exporters of meat to Angola are the US, Brazil, Portugal, Netherlands and Poland.
However, local producers can leverage on Zimbabwe’s proximity to Angola and existing trade agreements to shore up exports.
According to Trade Map, meat imports in Angola are dominated by fowls of the species gallus domesticus, ducks, geese, turkeys and guinea fowl.
Demand is also growing for chilled or frozen swine and bovine meat.
Local companies can also focus on value addition of specific products such as chicken and pork.
There is potential to increase the production of processed foods such as tinned foods, fruit juices and cordials.
These value-added goods will enable local producers to potentially earn more from their export products and, at the same time, increase job creation and economic activities in Zimbabwe.
Dairy products have huge potential, as reflected by the price difference between those obtaining in Zimbabwe and Angola.
Currently, Angola imports these, including long-life full cream milk and yoghurt sourced from countries such as South Africa and Portugal.
Products with potential in the fast-moving consumer goods (FMCG) category also include poultry and table eggs.
Baby chicken and ordinary chicken are in high demand.
As Angola has been encouraging rearing of chickens locally, Zimbabwean companies can also supply stock feeds.
Regarding distribution channels of FMCGs products to Angola, established retail chains such as Shoprite are significant avenues for entry.
Agriculture and horticultural produce
Agricultural production is low in Angola, with local produce accounting for less than 15 percent of what is available in supermarkets.
So, Zimbabwean fresh produce, including vegetables and fruits, has a ready market in Angola.
However, one of the key focus areas for the Angolan government is investing in agricultural production and processing, as part of measures to diversify the economy and avoid over-reliance on oil and food imports.
This is stimulating an increase in the demand for agricultural implements, which local companies can supply.
There is rising demand particularly for ox-drawn implements.
In addition, there is also an opportunity for technical skills in areas such as horticulture, agronomy, veterinary services and crop sciences, which Zimbabwe has in abundance.
Clothing and protective clothing
There are two distinct clothing markets in Angola: the lower end — mainly dominated by Chinese and second-hand clothing; and the upmarket segment with Brazilian, Italian and Portuguese fashion.
Angolans have a strong affinity to Portuguese and Brazilian fashion trends, and products in this segment are sold at a premium.
Well-known labels include Hugo Boss, Lacoste and Pierre Cardin.
Zimbabwean suppliers can compete in this segment as they also have quality products.
Previously, use of protective clothing in Angola was not common in small companies as regulations did not compel their use.
However, the changing regulatory framework is creating opportunities for local suppliers of protective clothing, especially in the construction, manufacturing and agriculture sectors.
Construction supplies
Angola is currently on an infrastructure development drive — which includes road construction, housing and industrial development.
The country is endowed with resources to support this sector, including raw materials for cement manufacturing.
This presents an opportunity for cement processing.
With industrial, commercial and infrastructure development taking place in most parts of Luanda, a wide range of opportunities are on offer — from construction to providing construction material.
The construction industry has inherent opportunities in brick making, cement processing, sub-contracting engineering services and painting services.
Human capital
The official business language in Angola is Portuguese.
This in itself provides scope for English teachers and translators, who are in demand. Furthermore, there is general demand for personnel with artisanal skills.
These include electricians, quantity surveyors, electronic engineers and plumbers.
Allan Majuru is ZimTrade’s CEO
