Africa Connected

Why some consumer goods in Mozambique are not so fast moving

Travelling through Mozambique, Nikiwe Bikitsha sits down with ADC SA’s Chairman – the country’s biggest fast moving consumable goods company to discuss the challenges brought on by the current state of the economy.

In 2013 a flourishing partnership blossomed in the fast moving consumer goods sector (FMCG) between Africom Lda. and Delta Trading & Companhia Lda. and the companies decided it was time to merge.

Together, they control the commodities market and also have exclusive partnerships, agencies and distributorships with global firms like Vodafone/Vodacom, Coca Cola, Unilever, Goodyear, and Pirelli.

Dominating the FMCG industry, the group worked toward advancing private sector development to aid the rebuilding of livelihoods, creating jobs and generating income in fragile areas.

But by 2015, the economy began slipping and whilst the central bank’s fiscal policies were put in place to control inflation, it was hurting businesses and caused an increase in the interest rate, which in turn was passed onto the consumer.

The consumer’s pocket is not elastic. The disposable income is not great.

Mhamud Charania, Chairman of the Board of Directors at ADC

One of the other challenges that arose was the country’s logistical problems. Transporting goods, whether by truck, railway or sea freight is extremely expensive and in turn, the company now has 70% of its products imported from other countries.

Freight costs make the product too expensive and sometimes, it’s better to import a product from another country rather than bringing it from within your country.

Mhamud Charania, Chairman of the Board of Directors at ADC

Charania makes the point that whilst the country has all the resources that it needs, along with good infrastructure, a heavy investment in logistics is needed.

Click here to access the Africa Connected portal or click below to watch Nikiwe's full interview with Mhamud Charania...


Recommended

by NEWSROOM AI
Read More
Even Beira situated in the North, has THREE modes of public transport!

Even Beira situated in the North, has THREE modes of public transport!

Lee Kasumba shares on her experience of getting around in Mozambique's fourth largest city

Ethiopia get ready... Lee Kasumba will be landing there soon

Ethiopia get ready... Lee Kasumba will be landing there soon

702's Lee Kasumba heads to East Africa to find out about business innovations on #AfricaConnected.

Mauritius is fast becoming Africa’s textile hub

Mauritius is fast becoming Africa’s textile hub

The textile industry has helped transform the Mauritian economy - constantly evolving to meet the world's needs.

The University of the future has African roots

The University of the future has African roots

With a fresh approach to new age tertiary education, the doors of learning are wide open at African Leadership University.

Profiting from Paradise? Here’s why Mauritius comes out tops

Profiting from Paradise? Here’s why Mauritius comes out tops

Mauritius has built a good reputation for moving efficient in terms of innovation and implementation.

Buckle up, young entrepreneurs are doing it for themselves

Buckle up, young entrepreneurs are doing it for themselves

Just a few years ago, Karrim Abbasakoor took the leap and left corporate Mauritius to venture into entrepreneurship.

Popular articles
How to pay up to 45% less tax (and save the SA economy while you’re at it)

How to pay up to 45% less tax (and save the SA economy while you’re at it)

The Money Show’s Bruce Whitfield interviews Darryn Faulds, a fund manager at Grovest Group.

10-year-old maths whiz Sbahle Zwane gets a scholarship from Curro school

10-year-old maths whiz Sbahle Zwane gets a scholarship from Curro school

Azania Mosaka catches up with Sbahle Zwane's mother to hear about developments with his schooling.

Is the ANCYL still relevant and who is likely to take over the leadership reins?

Is the ANCYL still relevant and who is likely to take over the leadership reins?

Former ANCYL spokesperson and eNCA political reporter Samkele Maseko discuss who is up for the new ANCYL leadership.

'It's unacceptable that government officials pay R75 for luxury apartments'

'It's unacceptable that government officials pay R75 for luxury apartments'

IFP national spokesperson Mkhuleko Hlengwa says the party is calling for a review of these rates that are a cost to taxpayers.

[WATCH] Sars boss confusing, evasive testimony at Nugent Commission

[WATCH] Sars boss confusing, evasive testimony at Nugent Commission

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.

Getting drunk improves creative problem solving - Harvard Business School

Getting drunk improves creative problem solving - Harvard Business School

Bruce Whitfield asks branding and advertising expert Andy Rice about a peculiar study that has creatives reaching for the tequila.