LISBON Dec 23 (Reuters) – Angola’s government has
approved the entry of Portugal’s largest retailer Sonae
into the southern African country’s food retail market with a
$103 million investment, the cabinet said.
It said Sonae’s request has been approved under a new
private investment law passed in April to attract overseas
investors by offering incentives including tax breaks.
Angola’s food retail market has attracted interest from
major players, with U.S. retail giant Wal-Mart planning
to enter one of the continent’s fastest-growing economies
through its Massmart unit.
South African retailers Woolworths and Pick n Pay
are also eyeing a presence in the country.
Sonae’s domestic market is under pressure due to painful
austerity measures imposed by the terms of Portugal’s
international bailout and the company has expanded overseas by
opening stores in Spain, Turkey, Egypt and Kazakhstan.
In April, Sonae announced a partnership for the Angolan
market, taking 49 percent in a joint venture with Condis,
controlled by Isabel dos Santos, daughter of the country’s
long-serving President Jose Eduardo dos Santos.
Sonae board member Luis Reis said in September the company
plans to launch its operation in Angola in 2013, opening up to
five hypermarkets in the capital Luanda in a first phase.
He added that Sonae will operate the hypermarkets rather
than invest in the real estate for the stores, and hopes to open
a logistics centre and create ties to the local agricultural
sector to gain competitive advantage. [ID: nL5E7KM48S]
Sonae shares were up 2.5 percent at 1604 GMT, outperforming
the broader index in Lisbon which was 1.3 percent higher.
(Reporting by Shrikesh Laxmidas; Editing by Erica Billingham)
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