TITLE:
The Future of Formal Retail in Sub-Saharan Africa: Brief Review and Opinion
AUTHORS:
Obino Mwamba, Abubaker Qutieshat
KEYWORDS:
Commodity Price, Demographics, Formalized Retail, Informal Retail, Sub-Sahara
JOURNAL NAME:
Open Journal of Business and Management,
Vol.9 No.4,
June
16,
2021
ABSTRACT: As Sub-Saharan Africa economies boomed in the early 90s, formal retail
trade grew as well. However, most of the Sub-Saharan economies’ wealth depends
on commodity price performance which in turn has impeded the growth of retail
sector. The focus on Africa from the major retailers’ perspective has always been short-term. As the challenges continue
eroding opportunities, many are re-thinking whether there is hope in the
long-term. While there is no heterogeneity, as each country is at a different
stage in retail development, challenges of inflation, forex shortages, poor
infrastructure development, policy shifts, and general government
inefficiencies are not uncommon. Almost 90% of informal trade makes up the
retail sector in Sub-Saharan Africa. The informal retail growth, riding on the
political support of the governments, is crowding out the formalized retail
growth. This work explores the body of existing knowledge on formalized
retailing in Sub-Saharan Africa and focuses on how retailing has evolved in
Sub-Saharan countries of Nigeria, Angola, South Africa, Zambia, and Malawi. The
paper concludes by identifying the retail growth gaps from retail chains and
the governments in the Sub-Saharan region. Recommendations for sustainability
are highlighted. Future research gaps are equally identified to advance the understanding
of formalized retail importance, challenges, and prospects for Sub-Saharan
Africa.