3. Company Background
Company Name Antelope Milling
Industry Maize Milling
Geographical Areas Served Zambia, DRC and Angola
Location Luanshya, Zambia
Current CEO Emmanuel Efstathiou
Number of Employees 201-500
Main Competitors Olympic , Mpongwe,
Superior, Simba, Jamas,
and National Milling
Companies.
4. Political Factors
• The current Zambian political
environment is fairly stable
notwithstanding the issues surrounding
the constitution making process and the
application of the public order Act.
• The political environment may become
more uncertain as the country moves
towards the 2016 General Elections.
5. Economic Factors
• Exchange rates: The Kwacha has continued
to depreciate against major currencies such
as the US Dollar ($), British Pound (£) and the
Euro (€).
• A depreciating Kwacha presents an
opportunity for more exports to Antelope
Milling.
• However, it restricts the importation of
machinery and spare parts.
6. Economic Factors Cont.
• Interest rates currently stand at around
18% which is still too high for most
companies Antelope Milling inclusive.
• Antelope should alternative sources of
financing as the Zambian money market
is still unaffordable for them.
7. Economic Factors Cont.
• Economic growth: The economy grew at
6.5% in 2013 and is projected to grow at
7.1% in 2014 and 7.4% in 2015 which is a
plus to national milling as a growing
economy implies a growing demand for
its products.
• Over the past decade the Zambian
economy has been growing at an average
rate of more than 6% annually.
8. Economic Factors Cont.
• A growing economy (fuelled by mining
activities) in Katanga Province neighbouring
the Copperbelt presents enormous
opportunities for Antelope Milling. South
Kivu (DRC) is also another opportunity which
Antelope Milling should seriously consider in
the foreseeable. South Kivu can be accessed
through Mpulungu Port located on Lake
Tanganyika.
9. Economic Factors Cont.
• Inflation rate: The inflation rate for
March 2014 stood at 7. 7% as compared
to 7.6% the previous month.
• A low inflation rate makes planning and
budgeting less hectic.
• The Government is targeting a year end
inflation of 6.8% in 2014 and 6.3% in
2015.
10. Socio-cultural Factors
• The population size of Copperbelt stands
at 1.9 million and the neighbouring DRC
province of Katanga has a population of
more 10 million.
• Population is a source of labour as well
as a market for Antelope Milling’s
products. A high population presents a
huge opportunity for Antelope Milling.
11. Socio-cultural Factors
• Zambians are now adopting healthier
lifestyles. The company might witness a
drop is sales for breakfast mealie meal
and an increase in demand for roller
meal.
• The company has moved proactively by
introducing sift mealie meal.
12. Technical Factors
• Technology has revolutionised the way
firms produce and market their products
and communicate with their customers.
• Antelope Milling should take on board
technologies that will it an edge over
competitors such as social media
(Facebook, LinkedIn, and Twitter).
13. Ecological Factors
• The ecological environment is a source of
raw materials for Antelope Milling.
• The must ensure that it does not pollute
the environment as produces its goods
which maize (corn) meal and flour.
• The company operate as per guidelines
set by the Zambia Environmental
Management (ZEMA).
14. Legal (Legislative) Factors
• The company must wary of the
Employment Act especially with sections
dealing with casualisation and Minimum
Wages Act.
• The company must pay attention to the
Competition Act so that it does not come into
conflict with the Zambian Competition and
Consumer Protection Commission (ZCCPC).
15. Conclusion
• The macroenvironment presents both
opportunities and threats to Antelope
Milling .
• The company should continually scan the
environment to take advantage of
opportunities, guard against threats and
stay ahead of competition.
