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BMI View: The short-term outlook for Mozambique's retail sector is subdued, hampered by the weak
domestic economic outlook, widespread poverty and high rates of inflation. Although a relatively populated
country, total household spending levels of around USD8bn make this is one of the smallest retail markets
in the region, reflecting very low per capita income rates and limited urbanisation. Opportunities remain
largely confined to the budget sector, with the vast majority of spending taken up by essentials, including
basic food and drink products and housing and utilities costs.
Key Views And Developments
- The retail market is largely dominated by informal retail (such as large open air markets) and small
domestic chains, though we are seeing more investment by regional retailers, primarily from South
Africa. Retailers which have expanded in Mozambique over the first half of 2016 include Shoprite,
Massmart (part of the Walmart Group) and Pepkor.