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...

Read More
Now is the best time to invest in Côte d'Ivoire - Michel Brizoua

Now is the best time to invest in Côte d'Ivoire - Michel Brizoua

Nikiwe sits down with Business and corporate lawyer Michel Brizoua to chat about the business opportunities in Côte d'Ivoire.

Brand SA, opening doors to new markets

Brand SA, opening doors to new markets

Nikiwe chats to James Osterloh, who moved to Abidjan from South Africa about a year ago, about his experience in Côte d'Ivoire.

Côte d'Ivoire, land of opportunities

Côte d'Ivoire, land of opportunities

Travelling through Abidjan, Côte d'Ivoire as part of Africa Connected series, Nikiwe Bikitsha meets Stanbic Bank's DG Herve Boyer.

Nikiwe Bikitsha is in Cote d'Ivoire  #AfricaConnected

Nikiwe Bikitsha is in Cote d'Ivoire #AfricaConnected

702 & Standard Bank have sent journalist Nikiwe Bikitsha across Africa to get up close and personal with our continent's markets.

Moreira's music journey echoes Mozambique hope

Moreira's music journey echoes Mozambique hope

Nikiwe Bikitsha speaks to celebrated jazz musician Moreira Chonguica in Mozambique.

Transformative Maputo-Catembe Bridge Project nears completion

Transformative Maputo-Catembe Bridge Project nears completion

Nikiwe Bikitsha finds out the progress in the construction of one of Africa's largest infrastructural projects.

Popular articles
Mcebisi Jonas refuses to be drawn on rumours of Finance Ministry reshuffle.

Mcebisi Jonas refuses to be drawn on rumours of Finance Ministry reshuffle.

Deputy Finance Minister says Gordhan will deliver a pro-poor budget on Wednesday 22 February in Parliament.

Makasi seeks legal advice for being called Nomvula Mokonyane's 'Ben 10'

Makasi seeks legal advice for being called Nomvula Mokonyane's 'Ben 10'

Central Energy Fund chairman, Luvo Makasi, has denied a City Press report that he calls shots in the Water Affairs Department.

Eusebius McKaiser: Where the hell were you in the making of JZ, Mathews Phosa?

Eusebius McKaiser: Where the hell were you in the making of JZ, Mathews Phosa?

Eusebius McKaiser uses Open Line to send a message to former ANC Treasury who has recently urged Zuma to step down.

Does God exist? A debate

Does God exist? A debate

Eusebius McKaiser hosted a heated debate on God's existence with atheist Jacques Rousseau and believer Mahlatse Winston Mashua.

The benefits (or dangers) of eating once a day

The benefits (or dangers) of eating once a day

Dietitian lambasts author of book punting one meal a day, but trained vet remains firm that humans historically ate like this.

Opinion: Xolani Gwala weighs in on tax hike speculation

Opinion: Xolani Gwala weighs in on tax hike speculation

Democratic Alliance (DA) has announced that it expects Finance Minister Pravin Gordhan to increase personal income tax.

Xenophobia fears simmer in Tshwane

Xenophobia fears simmer in Tshwane

Foreign nationals say police are not protecting them after houses were set alight by angry community members.

You can replace Gordhan with a dog and it would do as good a job - senior journo

You can replace Gordhan with a dog and it would do as good a job - senior journo

Financial journalists Duma Gqubule and Sikhonathi Mantshantsha debate Brian Molefe's eligibility to head National Treasury.

Molefe should reject MP offer (if he stands for excellence)- Eusebius McKaiser

Molefe should reject MP offer (if he stands for excellence)- Eusebius McKaiser

Eusebius McKaiser says if Brian Molefe accepts the offer it would reinforce the idea that he has been a wolf in sheep's clothing.