Apr 16, 2011

Continente Prepares Market Entry Into Angola

The Portuguese retailer Sonae and Condis (a Angolan company of which Isabel dos Santos is majority shareholder) today signed a strategic partnership agreement with the goal of together building a network of hypermarkets in Angola under the Continente brand name.

The agreement will involve the set up of a joint venture held 51% by Condis and 49% by Sonae, in which important decisions will be made jointly, with Sonae responsible for operational management, thus bringing together the technical knowhow and retail experience of Sonae with Condis’ extensive knowledge of the Angolan market.

The project in question plans for the opening of a network of Continente hypermarkets with the objective of attaining leadership of the modern retail food based retail market in the country.

Continente will thus make its contribution to the impressive trend of economic growth and sustainable development of Angola. It will continue to serve its customers with a highly distinctive value proposal – based on wide range of products, low prices, excellence of customer service, and the high quality of food safety of its product offer.

This partnership is consistent with the framework of strategic development established for Sonae, and offers a highly significant opportunity for international expansion, while at the same time diversifying the company’s investment style.

The project announced today is subject to final approval by the competent Angolan authorities.

GROWTH IN THE ANGOLAN MARKET

Angola has around 18 million inhabitants and a population growth rate estimated to be 3% per annum. In 2020, the total population is expected to reach 25 million and with steadily increasing purchasing power.

GDP per capita in the country in 2009 was in the region of $4,500 and, according to IMF projections, GDP growth was around 2.5% in 2010 and should increase to 7% in 2011. These growth rates are sustained by a similar average growth rate over the last decade, which, if it continues, means that GDP per head will more than double by 2020.

Modern retail growth in Angola has developed significantly, but it is estimated that its share in the total food retail market is still less than 10%.