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A PESTLE analysis of international retailing in the East African Community

Article  in  Global Business and Organizational Excellence · May 2019

DOI: 10.1002/joe.21935

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DOI: 10.1002/joe.21935

FEATURE ARTICLE

A PESTLE analysis of international retailing in the East

African Community
Felix Adamu Nandonde

Although many retail firms from around the world have established a presence in
the East African Community (EAC), not all internalization attempts have been suc-
cessful. Application of the PESTLE model—which examines various political, eco-
nomic, social, technological, legal, and environmental issues—to investigate the
barriers and opportunities in the sector highlights several obstacles to effective and
efficient commerce. These include poor infrastructure, inadequate skills and train-
ing, and lack of legitimacy. In some cases, these deficiencies also hamper the
efforts of locally based retailers to expand in the region. Ultimately, business suc-
cess may depend on the ability of local governments to design policies and prac-
tices that enhance rather than hinder trade and development.

1 | INTRODUCTION Southern Africa Development Community. Choppies, a

Botswana retailer, opened 12 stores in Kenya and 2 in
The arrival of international retailers in Africa has changed the Tanzania.
nature of doing business on the continent. For instance, in Although the African market offers great opportunities,
2012, the global number-one retailer, Walmart, acquired 51% international retailers face many difficulties in realizing their
of Massmart, a South African retailer that operates in 13 African goals in the continent. For instance, after 2 years of operation
countries, and planned to open 90 new retail stores by 2016 in Egypt, Sainsbury pulled out in 2001 because of a consumer
(Maylie, 2013). As of the end of 2018, however, only 42 stores boycott and vandalism sparked by rumors that the company
in 12 countries outside South Africa had been established was pro-Israel (Orme, 2001). Carrefour, the number-two
(Bavier, 2018). Similarly, English retailers, such as Sainsbury global retailer, left Algeria in 2009 after 2 years of operation.
and Marks & Spencer, have targeted the North African nations
of Libya, Morocco, Tunisia, and Algeria, while the French In 2002, Pick n Pay of South Africa, the
retailers Carrefour and Casino have expanded into Francophone continent's second-largest retailer in
countries. In 2016, Carrefour opened its first store in Kenya, terms of revenue, exited the Tanzanian
and the retailer currently has six stores in the Kenyan capital of market.
Nairobi, the economic hub of East Africa (see Exhibit 1). Such
moves are not the first, however. SPAR International, a Dutch Retailers from abroad are not the only ones that have failed
multinational that manages independently owned and operated in Africa. As noted in Exhibit 1, in 2002, Pick n Pay of
food retailers, has been in the continent since 1963. Although it South Africa, the continent's second-largest retailer in terms of
has expanded its reach to nine African countries since 1994, revenue, exited the Tanzanian market. Another South African
none of its stores are in East Africa. retailer, Metro Cash and Carry, failed in Kenya in 2005 and in
Cross-border internationalization of retail outlets, which is Uganda in 2007. Uchumi Supermarket, a Kenyan retail firm,
dominated by Kenyan and South African firms, is also on the left Tanzania and Uganda in 2015, and in 2017, Kenya's
rise. For instance, Nakumatt Supermarkets, a Kenyan chain, has Nakumatt collapsed in Uganda and Tanzania. These outcomes
expanded into Uganda, Rwanda, and Tanzania. Likewise, vari- show that, despite the area's appeal to international investors,
ous South African retailers have expanded first to Botswana, there are significant pitfalls associated with doing business in
Namibia, and Lesotho, and then to other countries in the the region.

54 © 2019 Wiley Periodicals, Inc. wileyonlinelibrary.com/journal/joe GBOE. 2019;38(4):54–61.

NANDONDE 55

EXHIBIT 1 Sample of modern retailers in the EAC market

Firm Origin Countries of operation Number of stores
Carrefour France Kenya 6
Choppies Botswana Kenya, Tanzania 14
Metro Cash and Carry South Africa Kenya, Uganda Closed in Kenya (2005) and Uganda (2007)
Naivas Kenya Kenya 26
Nakumatt Kenya Kenya, Rwanda, Tanzania, Uganda Closed in Uganda (2017), Tanzania (2017), and
Rwanda (2018); down to 6 stores in Kenya from
62 in the region
Pick n Pay South Africa Tanzania Closed in Tanzania in 2002
ShopRite South Africa Tanzania, Uganda Closed in Tanzania (2014) and Uganda (2015)
Tusky's Kenya Kenya, Uganda 48
Uchumi Supermarkets Kenya Kenya, Tanzania, Uganda Closed in Uganda and Tanzania (2015); 12 stores remain in
Kenya
Walmart/Massmart South Africa/USA Kenya, Tanzania, Uganda 4
Woolworth South Africa Tanzania, Uganda 4

Sources: Business Daily Africa (2018); Olingo, 2018; Psirmoi, 2018.

The East African Community (EAC), which is made environment. It also is linked to seminal research on the pro-
of Burundi, Kenya, Rwanda, South Sudan, Tanzania, and cess of scanning external market environments that often
Uganda, has a population of 172 million people. Although cannot be easily influenced by the organization (Aguilar,
member states differ economically and in terms of develop- 1967). In practice, PESTLE should show the connection of
ment, they share one thing in common: They each represent variables toward expected outcomes (Collins, 2010): For
opportunity for growth—and that makes them attractive to example, an increase in income tax could lead to a reduction
global organizations. in consumption.
When entering a new market, retailers have to consider Even when managers cannot influence external condi-
local culture, policies, laws, and consumers' behavior. Some tions, a PESTLE analysis can help them set their strategy
recently enacted retail reforms, for instance, have proven and reflect on their tactics and internal resources. Scholars
unpopular and, in some cases, have even made growth diffi- and practitioners generally agree that firms whose leaders do
cult (The Economist, 2013c, September 21). Research on not understand the external environment in which they oper-
retail modernization in Africa—with the exception of some ate are likely to fail.
studies conducted in South Africa—is scarce, however (das
Nair, 2018; das Nair & Chisoro, 2017).
3 | A P P L YI N G T HE PE S T L E M O D E L I N
T H E EA C
2 | MODELS OF ASSESSMENT
The parameters that are considered when assessing a firm's
There are many models that organizational leaders can use external environment can vary. Some managers have used a
to help them make decisions in different business environ- PEST model that considers politics, economics, society, and
ments. They include SWOT (strengths, weaknesses, oppor- technology (Aldehayyat & Anchor, 2008). Others have con-
tunities, and threats) and PESTLE (political, economic, sidered ethics, the overall business environment, and the law
social, technological, legal, and environmental). Whereas a in their analyses.
SWOT analysis is helpful in analyzing a firm's internal In this study, legal considerations will be examined
environment, a PESTLE analysis focuses on the external apart from politics. Previous research has stressed that in
conditions that affect business operations (Day, 1990; Walsh, the mapping of political terrain, it is useful to distinguish
2005). Previously, the model has been used to examine the the political from the legal and administrative climates
evolution of retailing in China (Wang, 2011) and the perfor- (Thomas, 1974). This is because local laws and regulations
mance of non-life insurance in Malawi (Kampanje, 2014). cannot keep up with the rapid pace of economic change in
Similarly, the PESTLE model can serve to investigate the many developing countries. For instance, in some countries
business climate that contemporary retailers face in the EAC (China, for example), retailers have been allowed to operate
and its impact on the retailing sector. certain businesses, such as hypermarkets, despite local laws
Although the PESTLE tool has been criticized for not restricting them (Wang, 2011). Keeping political and legal
having originated in conceptual theory (Kourteli, 2000), it considerations separate will result in a clearer analysis of
does enable managers to identify ways in which their firm the changes stimulated by each of these factors, as well as
can position itself to ensure survival in a dynamic business their impact on the economic growth of the EAC.
56 NANDONDE

3.1 | Political issues Terrorist attacks also threaten the growth of the retail-
A focus on political environment once meant paying attention ing sector in the EAC. For instance, the managing director
to a single country's politics and identifying who had the power of Nakumatt estimated that sales fell by 30% after an al-
to influence major decisions (Simon, 1984; Thomas, 1974). Shabaab attack at the upscale Westgate shopping mall in
Concentrating on nationality and national identity, forecasts Nairobi claimed 67 lives in September 2013 (Manson,
addressed the possibility of expropriation or confiscation of 2013). The January 15, 2019, attack at Nairobi's DusitD2
investments made by multinational enterprises (MNEs) in the hotel, which left 15 people dead, and the attack that took
host country. Following the introduction of liberalization and 74 lives during a screening of the 2010 FIFA World Cup
privatization policies in developing countries, the focus of man- final in two locations in Kampala, Uganda, also raised seri-
agers and analysts at many MNEs has shifted to political unrest ous security issues for places that attract both locals and
and the factors that can lead to it. Meanwhile, African countries tourists and are favored by high-end consumers.
struggle to build stable environments for domestic and interna- Trade barriers, especially nontariff barriers, limit the
tional investors. Therefore, it is important for MNEs to note the expansion of international retailers in the EAC. Some have
role of the home and the host countries in the international argued that highly vulnerable markets should be avoided or
arena so that they can determine the potential for external actors assigned risk premiums (Czinkota & Knight, 2011). In addi-
to affect company operations (Simon, 1984). tion to fomenting fear among consumers, such nontariff bar-
riers are likely to discourage investors, reduce their access to
Following the introduction of liberalization loans, and ultimately hamper economic growth in the region.
Installing maximum-security provisions will certainly increase
and privatization policies in developing
employers' operational costs, but they will have to weigh that
countries, the focus of managers and ana- expense against the risk of losing employees who would shy
lysts at many MNEs has shifted to political away from working with firms that are prime targets of terror-
unrest and the factors that can lead to it. ists, unless they are assured of their safety on the job.

Political changes that resulted in various economic Trade barriers, especially nontariff barriers,
reforms in EAC countries—the removal of price controls, limit the expansion of international retailers
direct importation, and nontariff barriers, for example— in the EAC.
have led to increased foreign direct investment (FDI) in the
region. The main beneficiaries have been the services sec- Once its reputation is tarnished in the international arena, a
tor, which received a large portion of that investment, and company may find it difficult to recover lost prestige. For
the retailing sector, which attracted the greatest number of instance, the leading retailer in the EAC, Nakumatt, struggled
international and cross-border firms. Banks, fashion shops, to conduct business after a $20 million business deal in 2009
fast-food outlets, and supermarkets were among the compa- for Satya Capital to buy Nakumatt fell through and, 2 years
nies that benefitted. Thus, political changes not only attracted later, the US President Barack Obama named one of Naku-
international retailers to the area, but also spurred the emer- matt's major shareholders as a prominent narcotics trafficker
gence of indigenous entrepreneurs. On the other hand, four (Forbes, 2011). In 2017, financial difficulties led the retailer to
major aspects of the EAC's political environment have hurt shut down its operations in Tanzania and Uganda. Such experi-
retailing internationalization in the region: political instability, ences deter reputable firms from associating in the region.
terrorist attacks, nontariff barriers, and indigenous entrepre-
neurs' bad international reputation.
3.2 | Economic factors
Political instability can result from war; a coup d'état, revo-
lution, or other political turmoil; and even democratic govern- In 2017, the economy of East Africa grew 5.9%, continued at
ment change (Miller, 1992). All these factors are unlikely to the same rate in 2018, and is expected to do the same in 2019
occur in one country or affect a single industry, and each (African Development Bank, 2018). An increase in income
should be considered on a case-by-case basis (Miller, 1992; has markedly changed the consumption behavior of urban resi-
Thomas, 1974). Although the EAC generally seems to be polit- dents, who are now eating more meat and milk instead of such
ically stable, Burundi and Rwanda still face internal rebel con- traditional staples as cassava, maize flour, and bananas.
flicts. Leading retailers in East Africa have earmarked Juba, the The growth of the EAC's middle class, estimated at about
recently named capital of South Sudan, as a strategic area for 29 million people who can spend $20 a day, is a good indi-
investment because it is a center for oil money in the region. cator of economic vitality (The EastAfrican, 2011). Since
Retailers' plans for expansion in that market may be unattain- those in the middle class tend to have fewer children than
able or will take a long time to implement because of tribal individuals with more meager incomes (CNN, 2011), it is
warfare. In fact, political unrest in the area led Uchumi and likely that they would have enough income to spend on other
Nakumatt to suspend their plans to establish stores in Juba. purchases besides food. Although the validity of middle-class
NANDONDE 57

estimates in Africa is questionable, the growth of a leading suppliers, although modern retailing is supposed to help
supermarket retail chain like Choppies in the region indicates reduce poverty in Africa.
that the middle class has become a reality in Africa. Con- A study in Tanzania found that native Africans have a low
sumers increasingly are migrating from open markets to mod- level of trust and social skills compared with Asian-Africans,
ern retail stores in East Africa (Nandonde & Kuada, 2018). which limits their business performance (Kristiansen & Jens-
The development of the EAC economy has created a promis- sen, 2004). In East African countries, contract law enforcement
ing market for retailers in the region. generally is very weak, which makes foreign businesspeople
Also of note is the fact that two major cities in the EAC, wary of working with native small-scale entrepreneurs. Links
Nairobi and Dar es Salaam, have each seen their population between local, small-scale entrepreneurs, and large foreign-
increase to more than 5 million people. Thanks to low urban based operations are more likely to be made if governments
transportation costs, this significant customer base can easily enforce contract laws so that area businesspeople will be
be accessed (Knight Frank, 2013). In other words, increased encouraged to avoid opportunistic behaviors.
urbanization makes it possible for retailers to avoid the notori-
ous infrastructure problems that have previously limited their 3.3 | Social conditions
reach into unevenly populated zones in Africa. Social conditions, which encompass culture, are crucial param-
On the other hand, the nations of the EAC are dealing with eters in any analysis of a business environment because they
high inflation and tax rates, which reduce consumers' purchas- constitute the context in which all interpersonal actions and
ing power. In some countries, the inflation rate has gone as high business activities take place (Thomas, 1974). Thus, the
as 20%. Inflation is also likely to be fueled by power crises, broader societal and cultural context in which retailers operate
severe infrastructure bottlenecks, and tariff increases (Asongu, is an important consideration (Nandonde, 2016).
2013). Thus, Africa's inflation can be viewed as structural in The rise of modern retailing in the EAC has led to increas-
nature. The food sector is highly sensitive to inflation, for ing pressures from regulatory agencies, NGOs, and con-
higher prices reduce the purchasing power of consumers and sumers on the retail community. Social tensions have arisen
alter their shopping patterns for even the most basic products. between local unemployed youths and expatriates working
This trend limits retailers' ability to offer customers incen- with multinational firms in the region. Many African con-
tives, such as weekly promotions, in developing economies sumers perceive foreign investors as representing a new form
(Alexander & de Lira e Silva, 2002). of colonialism (Nandonde, 2016), and business research has
documented various manifestations of this issue. Some studies
The arrival of international retailing firms have associated the failure of Walmart and Home Depot in
and their modern systems in the EAC market various countries to their policy of employing expatriates in
higher positions and marginalizing local workers (Arnold &
offers local suppliers good opportunities to Bianchi, 2004; da Rocha & Dib, 2002; Suh, 2005).
contribute to the restructuring of the Meanwhile, the number of university graduates in the EAC
region's retailing industry. has been growing since the upgrading of mid-tier colleges and
the emergence of private universities. For instance, in the EAC
economic hub of Kenya, university enrollment increased 34%
Empirical evidence shows that the emergence of modern
between 2012 and 2013: from 250,551 to 324,000 students
retailing in Africa has led to reductions in the price of food
(Business Daily Africa, 2014). This trend has created the expec-
(Dehil, 2011). Yet, ensuring the availability of locally sourced
tation that the inflow of FDI would promote local employment.
food year-round remains a challenge. Therefore, international
When cross-border retailers hire foreigners over local talent,
retailers often must rely on imports, weakening their relation- however, social tensions increase, presenting a potential obsta-
ship with local suppliers. The relationship between international cle to retail operations. Yet, multinational employers must
and local firms may further deteriorate if the foreign entity contend with the fact that workers in the EAC region often
introduces a monthly payment system, as opposed to the daily lack management skills and retail expertise. The only retail
system that suppliers favor. management course offered in the entire continent of Africa
Interestingly, the arrival of international retailing firms and is at the University of South Africa.
their modern systems in the EAC market offers local suppliers Some steps have been taken to address this shortcom-
good opportunities to contribute to the restructuring of the ing. For instance, in 1976, the Kenyan government signed
region's retailing industry. Economically (and socially), retailers a contract with Standa SPA, an Italian retailer, to train
in the EAC are under pressure to integrate local food suppliers Kenyans in the management of Uchumi Supermarkets. As
into the distribution supply chain. One of the major obstacles the sector continues to grow, however, it is still likely to
has been the risk of opportunistic behavior (such as cheat- be characterized by insufficient staff expertise in modern
ing and making false promises) by small-scale local sup- retail operations. Studies have shown that, probably because
pliers. This has resulted in the marginalization of these of limited resources, education is consistently having an
58 NANDONDE

insignificant effect on economic growth in Africa (Adu & where 60–70% of the population have mobile phones,
Frimpong, 2013), and lack of trained staff threatens the mobile payment seems to have become the favored elec-
growth of the retailing sector in developing economies (Lau, tronic method (The Economist, 2013a, September 14). Yet,
Lin, & Lo, 2001). Clearly, it will be impossible to nurture cash is still predominantly used in business transactions in
the progress of the sector without properly trained human Africa, although the risk of robbery is high (Bangens &
resources. Soderberg, 2011).
In the past, MNEs used joint ventures to minimize the
risk of expropriation (De la Torre & Neckar, 1988). Because Retailers have introduced various elec-
of an increase in the availability and speed of communica- tronic payment systems in Africa, including
tion, MNEs—particularly retailers—may now be required to mobile payment, credit and debit cards,
court and win community support over political support.
This underscores the importance for retailers to pay careful
and loyalty cards.
attention to the social environment in which they seek
While firms in Africa, especially retailers, are spearhead-
to grow.
ing the use of e-commerce, most of the countries in the con-
tinent have no cybercrime laws. For instance, regardless of
In the EAC economic hub of Kenya, univer-
the efforts of retailers like Uchumi Supermarkets and Sho-
sity enrollment increased 34% between 2012 pRite to encourage e-commerce via the use of loyalty cards
and 2013: from 250,551 to 324,000 students. and mobile payment in Tanzania, the country still has no
cyber law (Ubena, 2009).
Research has shown that adapting to the local culture Empirical findings show that African consumers avoid
can help international retailers succeed in a foreign market making online purchases because of concerns over inade-
(Alexander, Doherty, Hutchinson, & Quinn, 2009). Since quate security (Bhowan & Gordon, 2005), and this lack of
even consumers with similar incomes are not alike in their security can have a significant impact on an organization's
buying habits, international retailers need to create culture- reputation and competitiveness (Castaldo, Grosso, & Premazzi,
specific retailing strategies (de Mooij & Hofstede, 2002). 2013). A more synergistic approach among policy makers
The failure of the fashion retailer Deacons in Tanzania, for and service providers to provide safety measures would
instance, can be attributed to the firm's lack of understanding enable consumers to trust ICT (Edoho, 2013). With ICT
that Tanzanians prefer to buy clothes from boutiques rather comes the need for well-trained staff. Although the private
than from supermarkets. sector has been working hard on investing in ICT and train-
ing staff in Africa, lack of law enforcement response to
3.4 | Technological developments fraud and appropriate legislative support jeopardizes these
efforts.
The diffusion of information communication technology
(ICT) has been slow in Africa. The reasons include a lack of
qualified ICT personnel, poor infrastructure, the high cost of 3.5 | Legal considerations
services, and security problems. Food retailers across the globe often contend with the
Empirical evidence shows that there are various ways unpredictability of food policies in the countries in which
for firms that are affiliated with international retailers to they operate and from which they source their raw mate-
access knowledge and use e-commerce (Coe & Hess, 2005). rials (Bianchi, 2009). In Africa, business growth has been
To encourage agri-food suppliers to use e-business, some paralyzed by taxation, certification requirements, and other
international retailers have threatened to stop hiring sup- policies.
pliers who do not use ICT. One study conducted in Kenya Meanwhile, food production in Africa remains low. This
actually found instances where companies in the agri-food means that there is a need to facilitate the mobility of goods
value chain without ICT facilities were dropped (Neven & across the continent to curb supply shortages. In these situa-
Reardon, 2004). Some studies have indicated that in Africa tions, retailers are faced with the challenge of sourcing prod-
the diffusion of new ideas takes time. For instance, the ucts from different parts of the world and within the continent
2005 introduction of a mobile payment system by the net- while developing a competitive local value chain. With the
work operator Safaricom generated 1.5 million users and formation of various regional economic blocs, however, the
6,000 agents within a year in Kenya, but only 280,000 import and export of various commodities may be limited by
users and 1,000 agents in Tanzania during the same period tariffs and other legal barriers. For instance, imported rice is
(Bangens & Soderberg, 2011). subject to a 75% tax in the EAC (Business Daily Africa,
Retailers have introduced various electronic payment 2010). Kenya bans chicken importation, and this policy also
systems in Africa, including mobile payment, credit and limits the movement of poultry products throughout the region
debit cards, and loyalty cards. Not surprising in a continent (Hinshaw, 2013).
NANDONDE 59

Although these policies were implemented in an effort compared to $18 per square foot in the rest of the region
to protect local small-scale food processors and growers, (The Guardian, 2016).
they can lead to trade wars and other forms of economic
retaliation that have a negative effect on the local agricul- Poor infrastructure and land management
tural and business sectors. For instance, Tanzania is the lead- have limited retailers' internationalization
ing rice producer in the EAC, so the region's 75% import tax efforts in the EAC.
on rice favors Tanzanian rice growers. At the same time, the
import duty hurts Pakistan, which is not only a rice exporter, Convenient locations are essential for retailers to realize the
but also a major buyer of tea from Kenya. Pakistan retaliated potential of the economy in developing countries (Maruyama &
by increasing its tax on Kenya's tea. To avoid disrupting its Trung, 2007). To counter the shortage of commercial premises
tea business with Pakistan, the Kenyan government does not in major cities, some companies have embarked on real estate
enforce the EAC's decision on taxing rice imported into collaborations. For example, ShopRite and the Game/Walmart
Kenya from Pakistan. invested $6 million for the construction of a mall in Kampala,
Uganda.
3.6 | Environment for local business
The local business environment includes policies or prac-
4 | L O OK I N G TO W A R D TH E F U T U R E
tices that support or hinder the growth of the sector in the
region. Retailers in the EAC inherited problems associated While the retailing sector has been rapidly growing in
with restrictive economic models that most of the countries Africa, there recently have been calls for tariffs and other
in the region had followed. For instance, Tanzania was a
barriers to protect local manufacturers. Although such
centrally planned economy between 1967 and 1985; now it
moves can be beneficial, they need to be designed to be both
is in transition. Kenya and Uganda were once free-market
“pro-poor” and “pro-growth.” Otherwise, African consumers
economies, but now they have introduced such planning-
ultimately will suffer if such policies increase inflation and
economy principles as market protectionism. Two of the
reduce domestic production. Producers in Africa would ben-
most significant environmental factors to consider with
efit from access to technology and training to improve their
regard to retail internationalization in the EAC are infrastruc-
skills and operational capabilities. Rather than threaten their
ture and land management.
existence, international retailers can serve as a bridge to link
Poor infrastructure and land management have limited
local producers with markets around the world. This con-
retailers' internationalization efforts in the EAC. Because
nection cannot be made via protectionist policies. Rather, it
of inferior land management, buildings have been con-
requires capacity building to help producers conform to
structed without essential utilities like water and electricity
global food standards.
even in areas that have access to them. Such poor urban
Although previous studies have noted that African
planning has negatively affected retailers in the EAC. For
countries are attractive to foreign investors, the issue of
instance, in 2008, a Nakumatt Thika store in Nairobi was
widespread corruption on the continent has to be resolved
demolished to accommodate road expansion. The demoli-
(Darley, 2012). Deficiencies in infrastructure and human
tion is estimated to have cost the company $793,000. In
resource training are also among the most significant bar-
another instance, ShopRite was unable to develop a plot of
riers to the expansion of international retailers in the
land in Nigeria for its first store after three people each
region. Construction is another major concern in the EAC,
claimed to hold the title to the property. Although Sho-
for the local authorities are inclined to focus on residential
pRite had planned to open 700 stores in African countries
rather than commercial structures.
outside South Africa, it has just 7 (The Economist, 2013b,
November 11).
Deficiencies in infrastructure and human
High rents, coupled with a low level of investment in
the construction industry, also impede the retail sector's resource training are also among the most
growth in the region. Tanzania, for example, relies exclu- significant barriers to the expansion of inter-
sively on the National Housing Corporation (NHC), a national retailers in the region.
state-owned enterprise, for the construction of houses
(Mbogo, 2014). Budget reductions have cut the funding There is much that the governments of the EAC nations
available to various parastatal organizations, depressing can do to address these challenges. For example, local
the housing sector. Furthermore, the NHC has failed to agencies that are responsible for issuing building permits
collect rents and operates at a loss (Komu, 2011). This has can require developers of multistory buildings to provide
resulted in higher rents for the few available offices and ground-floor space for offices or other business purposes.
commercial spaces in Tanzania: $30 per square foot, In addition, loans can be designed for developers who build
60 NANDONDE

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S. W. Anderson, H. Traore, & J. Graff (Eds.), Marketing management in A U T H O R B I O GR A P H Y

Africa (pp. 224–240). New York, NY: Routledge.
Neven, T., & Reardon, D. (2004). The rise of Kenyan supermarkets and the evo-
lution of their horticulture product procurement systems. Development Policy FELIX ADAMU NANDONDE, PhD, is a lecturer in marketing
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and coordinator of the MBA evening program at Sokoine
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nomics and Business Studies at SUA. Dr. Nandonde
https://www.nytimes.com/2001/01/25/business/grocer-amid-mideast-outrage- earned a doctorate in business economics from Aalborg
sainsbury-becomes-target-rumors-israel-boycott.html University in Aalborg, Denmark. His master's degree in
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food marketing is from Newcastle University-upon Tyne,
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Tanzania. Before joining academia, Dr. Nandonde was a
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Journal of Global Marketing., 18(1-2), 456–756. business banking consultant for National Bank of Com-
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2013/09/14/cash-be-cowed Business and Economics; British Food Journal; Journal
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for Africa? Retrieved from https://www.economist.com/baobab/2013/11/11/
of Language, Technology & Entrepreneurship in Africa;
an-amazoncom-for-africa Transnational Economic Review; and International Jour-
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great trek. Retrieved from https://www.economist.com/business/2013/09/21/
written chapters for books on marketing and retailing in
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The Guardian. (2016, February 26). Rent in Africa: Where Dar es Salaam Africa published by Routledge, Springer International,
stands. Retrieved from https://www.ippmedia.com/en/business/rent-africa- Elsevier, IGI Global, and Walter de Gruyter. He can be
where-dar-es-salaam-stands-0 reached at [email protected].
Thomas, P. S. (1974). Environmental analysis for corporate planning. Business
Horizons, 17(5), 27–38.
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tion? Law keeping up with technology. Law Reformer Journal, 2(1),
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