Slide of the month (SOTM) November. Mapping Africa’s manufacturing landscape for your 2024 Africa strategy

Africa’s manufacturing sector is experiencing significant growth, fuelled by rising demand and economic development. Businesses keen on tapping into this boom at the opportune moment seek valuable insights to navigate the expanding landscape.

This information has been vital for many clients as they plan for their 2024 Africa strategy. Our recent research into Africa’s manufacturing sector reveals an impressive surge, solidifying the continent’s position as a global economic player. Africa’s manufacturing output grew substantially, increasing from $190 billion in 2020 to an impressive $286 billion in 2022.

Mapping the sector provides our clients with crucial information for their strategic decisions. Nevertheless, our commitment extends to delivering tailored, country-specific data and strategic recommendations for a more precise and effective approach. This will position them for success in this thriving industry.

What is your potential in Africa? We can help. If you have any questions, contact us at info@africon.de.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) September. Why is Morocco emerging as a key economic player in Africa?

Slide of the month (SOTM) August. Who are the key players in Africa’s blown film extrusion machine market?

Slide of the month (SOTM) July. What opportunities exist in the edible oil industry in Kenya?

Slide of the month (SOTM) June. Europe holds a significant market share of spark plug imports to the top African countries

Slide of the month (SOTM) May. The size of Africa’s travel retail market

Slide of the month (SOTM) September. Why is Morocco emerging as a key economic player in Africa?

In collaboration with our client, a key player in the plastics sector, our recent project delved into Morocco. The objective was to equip them with a profound understanding, enabling strategic decisions and successful operations in the country.

Our research began with a look at Morocco’s economic landscape, shaping the context for our client’s market entry strategy. Morocco, a substantial African economy, boasts a GDP exceeding $134 billion, placing it as a lower-middle-income country with a GDP per capita surpassing $3,500. Despite global challenges in 2020, Morocco’s GDP growth over the last decade reflects resilience, establishing it as a stable and favourable business destination. Currency dynamics revealed fluctuations in the Moroccan Dirham (MAD), but the current trend shows appreciation against the USD, fostering investor and business confidence.

Morocco’s strategic memberships in regional and global unions, including the Arab Maghreb Union, the Community of Sahel-Saharan States, Pan-Arab Free Trade Area, and the Arab-Mediterranean Free Trade Area, contribute to its appeal for international business. Looking ahead, projections from CNN Business indicate Morocco’s ascent as the 6th largest economy in Africa by 2030, with a projected GDP of approximately $184 billion.

We gave strategic recommendations to our client, ensuring they are well-positioned to capitalize on the evolving opportunities within Morocco’s plastics market.
What is your potential in Africa? We can help. If you have any questions, contact us at info@africon.de.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) August. Who are the key players in Africa’s blown film extrusion machine market?

Slide of the month (SOTM) July. What opportunities exist in the edible oil industry in Kenya?

Slide of the month (SOTM) June. Europe holds a significant market share of spark plug imports to the top African countries

Slide of the month (SOTM) May. The size of Africa’s travel retail market

Slide of the month (SOTM) April. More than 37bn € investment in upcoming rail infrastructure projects poised to transform Africa’s transportation network

 

Slide of the month (SOTM) August. Who are the key players in Africa’s blown film extrusion machine market?

Africa’s blown film extrusion machine market is witnessing significant activity, with a few key players leading. We recently explored the market landscape and highlighted the market leaders and their presence in different African countries for one of our clients interested in the sector.

We investigated the market dynamics in-depth, focusing on the top African economies (by GDP) and blown film extrusion machine import patterns.

Windmöller & Hölscher, a renowned name in the industry, claims the top spot as the market leader in Africa’s premium blown film extrusion machine market. Their cutting-edge technology and reliable performance have earned customers’ trust across the continent. Macchi follows closely behind, securing the second-largest market share, while Reifenhäuser ranks third in market presence.

Taking a closer look at specific countries, Nigeria emerges as a stronghold for Windmöller & Hölscher, boasting an estimated installation of 25 machines. Macchi holds a strong position with 16 machines installed, while Reifenhäuser contributes with five machines.

Turning our attention to Kenya, we observed a notable domination of Indian machines in the market. Windmöller & Hölscher have established their presence with 14 printing units, delivering high-quality outputs to meet the demands of the local industry.

Identifying new and upcoming projects in the blown film extrusion sector across Africa enabled our client to make informed decisions. We shared some strategic recommendations based on our extensive research and industry expertise.

What is your potential in Africa? If you have any questions, contact us at info@africon.de.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) July. What opportunities exist in the edible oil industry in Kenya?

Slide of the month (SOTM) June. Europe holds a significant market share of spark plug imports to the top African countries

Slide of the month (SOTM) May. The size of Africa’s travel retail market

Slide of the month (SOTM) April. More than 37bn € investment in upcoming rail infrastructure projects poised to transform Africa’s transportation network

Slide of the month (SOTM) March. 77% of German chemical companies see a big potential in Africa.

 

Slide of the month (SOTM) July. What opportunities exist in the edible oil industry in Kenya?

 

How many bottles of edible oils does Kenya produce annually? This is one of the key questions raised by our client in the FMCG sector. They were interested in learning about the edible oil industry in Kenya.

Our findings revealed that Kenya produces a variety of edible oils for domestic consumption and export. Kenya’s most consumed ones include vegetable, palm, and coconut oil. Others include olive, avocado, and sesame oils, often imported and more expensive than locally produced oils.

Regarding production, some of the major players in the Kenyan edible oil industry include Bidco Africa, the largest manufacturer in the country, with a market share of 42%. The company produces a wide range of cooking oils under the brands Elianto, Kimbo and Golden Fry. Kapa Oils is the second-largest manufacturer of edible oils in Kenya, with a market share of 21%, producing cooking oil under the KAPA brand. Third is Menengai Oil Refineries, with a market share of 15%. The company produces a range of cooking oils, including vegetable oils, sunflower oil and palm oils under the Sunpure and Zesta brands. Pwani Oils is a smaller player in the Kenyan edible oils industry, with a market share of 11%. The company is famous for brands such as Sawa and Fresh Fry.

Other smaller Kenyan edible oil industry players include United Millers Limited, Mount Meru Group, and African Industries Group. They constitute the remaining market share.

Generally, the consumption of edible oils in Kenya is on the rise due to increased population, urbanization, and changing dietary habits. The demand for healthier oils, such as olive and avocado, is also increasing as people become more health conscious.

We consolidated all these findings into a comprehensive report and offered tactical recommendations to the client.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) June. Europe holds a significant market share of spark plug imports to the top African countries

Slide of the month (SOTM) May. The size of Africa’s travel retail market

Slide of the month (SOTM) April. More than 37bn € investment in upcoming rail infrastructure projects poised to transform Africa’s transportation network

Slide of the month (SOTM) March. 77% of German chemical companies see a big potential in Africa.

Slide of the month (SOTM) February. Green Hydrogen Opportunity in Africa

Slide of the month (SOTM) June. Europe holds a significant market share of spark plug imports to the top African countries

Africa’s booming population creates vast opportunities, including significant demand for automotive parts. With Africa’s vehicle fleet predicted to grow substantially over the next decades, the automotive aftermarket presents vast prospects for international firms.

Over the last couple of years, africon has implemented more than 35 projects in the automotive sector. One of the key questions from our clients is whether there is a market for European vehicle parts. With a recent client, we investigated the European spark plug imports of the top African economies (by GDP). We also examined the total value of the imports per country.

We found that Angola, Egypt, Ethiopia, Ghana, Kenya, Morocco, Nigeria and South Africa are the top importers of vehicle parts in Africa. The countries with significant market shares for European automotive parts are Morocco at 66%, South Africa at 54%, and Egypt at 26%.

africon provided the client with a comprehensive overview of the market and clear recommendations on potential focus markets. We also advised on finding the right partners locally in the selected markets.

What is the potential for you in Africa? If you have any questions, contact us at info@africon.de.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) May. The size of Africa’s travel retail market

Slide of the month (SOTM) April. More than 37bn € investment in upcoming rail infrastructure projects poised to transform Africa’s transportation network

Slide of the month (SOTM) March. 77% of German chemical companies see a big potential in Africa.

Slide of the month (SOTM) February. Green hydrogen opportunity in Africa

Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023

 

Slide of the month (SOTM) May. The size of Africa’s travel retail market

Global players dominate the African travel retail market. africon advised one of the largest travel retail operators in the world on their Africa strategy. The project aimed to identify the market size, main distribution channels, and new and upcoming projects in the travel retail industry.

Our research revealed that the travel retail turnover experienced a significant drop of 64.3% in 2020. This was primarily due to the COVID-19 pandemic, which caused the cessation of air travel, the implementation of stringent lockdown measures, and a decline in travel demand worldwide. However, the market is forecasted to grow at a CAGR of 5 – 10% until 2030 due to increased air passenger traffic, improved income levels among the middle class, and favourable government policies promoting tourism and hospitality.

We also presented the client with an all-inclusive report mapping duty-free shops and other retail outlets in airports, railways, onboard airplanes and cruise ships in Africa. We helped them prioritize the key markets and distribution channels to guide upcoming regional sales endeavours.

What is your potential in Africa? If you have any questions, contact us at info@africon.de

 

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) April. More than 37bn € investment in upcoming rail infrastructure projects poised to transform Africa’s transportation network

Slide of the month (SOTM) March. 77% of German chemical companies see a big potential in Africa.

Slide of the month (SOTM) February. Green hydrogen opportunity in Africa

Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023

Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa

Slide of the month (SOTM) April. More than 37bn € investment in upcoming rail infrastructure projects poised to transform Africa’s transportation network

The rapid population growth in Africa is generating ample prospects for international companies. One of our clients, a large travel retail operator, tasked us with creating their Africa strategy.
Being one of the largest distribution channels, the railway network has the potential to grow further in the next couple of years. Many African countries recognize infrastructure development’s role in supporting economic growth and development. As a result, investment in transport infrastructure, including railways, ports, and highways, has become a priority for many African governments.
The African Integrated High-Speed Railway Network (AIHSRN) has put forward an ambitious plan to connect all the capitals of African countries, as well as major cities and ports, through a high-speed rail network. The AIHSRN is part of the African Union’s Agenda 2063, a long-term strategic plan to transform the continent into a prosperous and integrated region.
We furnished our client with a comprehensive report with all the upcoming projects in the sector along with strategic recommendations based on the findings. Additionally, we identified key partners, offering guidance for future entry and expansion.
What is the potential for you in Africa? If you have any questions, contact us at info@africon.de.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) March. 77% of German chemical companies see a big potential in Africa.

Slide of the month (SOTM) February. Green hydrogen opportunity in Africa

Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023

Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa

Slide of the month (SOTM) November. Number of trade fairs in Africa

 

Slide of the month (SOTM) March. 77% of German chemical companies see a big potential in Africa

How much untapped potential does Africa possess, according to German chemical industry companies?

According to the current CHEMonitor trend barometer by CAMELOT Management Consultants and the trade journal CHEManager, 77%+ of the managers surveyed from the German chemical industry expect a significant increase in Africa’s standing in the sector. 86% regard Africa as a primary hub for raw materials, while 82% consider the continent a sales market.

Additionally, increased green energy from Africa will significantly contribute to achieving global climate targets. According to 85% of CHEMonitor respondents, Africa will produce enough renewable energy to supply itself and other regions making the continent an important strategic partner for Europe in terms of the successful implementation of the EU Green Deal.

There is still plenty of untapped potential in the chemical segment on the continent. This poses a great opportunity for companies interested in the sector.

Based on these and other findings, africon provides practical recommendations to guide clients in their Africa strategy. The chemical industry is one of the key sectors for africon, with more than 35 projects executed during the last years.

What is the potential for you in Africa? If you have any questions, contact us at info@africon.de.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) February. Green hydrogen opportunity in Africa

Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023

Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa

Slide of the month (SOTM) November. Number of trade fairs in Africa

Slide of the month (SOTM) October. Automotive battery markets in Africa

 

Slide of the month (SOTM) February. Green hydrogen opportunity in Africa

Did you know that Africa has the potential to produce 50 (Metric tonnes) Mt worth of green hydrogen per year by 2035?
Within a project with a client from the hydrogen mobility sector, we analyzed the potential for imports of green hydrogen from Africa. One of the key insights we found was that Africa would be producing about 50 Mt of green hydrogen per year.
This is due to the surging demand for clean-burning fuel as the world looks for alternatives to climate-warming fossil fuels. Europe is seeking to lessen its dependence on Russia’s natural gas, which has proved unreliable due to the Russia-Ukraine war and other global uncertainties.
This has posed a great opportunity for companies in the energy sector in Africa. By 2030, several countries can produce fuel by splitting water using renewable energy at a cost of less than 2€ a kilogram. This will only be made possible by harnessing the world’s best solar energy resource in Africa.
According to a study backed by the European Investment Bank, energy production is set to be in three major hubs in Africa; Egypt, the North-western hub (Morocco and Mauritania), and the South African hub (Namibia and South Africa). While plans to produce the fuel are most advanced in these nations, several other countries ranging from Algeria to Nigeria and Mozambique, have the potential to start production. The largest producer would be Egypt, with 20 million tons produced annually, followed by the Southern Africa hub with 17.5 million tons, where Morocco and Mauritania could together produce 12.5 million tons. About half of that could be exported, equivalent to 15% of Europe’s gas needs.
africon provided the client with a comprehensive market overview and facilitated them with identifying and accessing opportunities in the sector. We also gave them practical recommendations for penetrating the market.
What is the potential for you in Africa? If you have any questions, contact us at info@africon.de.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023

Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa

Slide of the month (SOTM) November. Number of trade fairs in Africa

Slide of the month (SOTM) October. Automotive battery markets in Africa

Slide of the month (SOTM) September. Agricultural exports from Africa

 

Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023

In a recent project, our client had the following questions:

  • Are there opportunities for global players like us in Africa’s printing industry?
  • What is the demand for new printing and packaging machines in Africa?

In our project with a large printing machine supplier to analyse the opportunities in the sector we found that the printing industry in Africa is growing and will produce more packaging material locally. This will require capex investment to meet a gap of 15 million tons until 2023, resulting in an estimate of approx. 600 newly installed printing machines.

We did a multi-country analysis and prioritization for our client. We also identified prospective partners, thereby reducing their costs, risk, and time when setting up in the continent.

What is the potential for you in Africa? If you have any questions, you can contact us at info@africon.de

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa

Slide of the month (SOTM) November. Number of trade fairs in Africa

Slide of the month (SOTM) September. Agricultural exports from Africa

Slide of the month (SOTM) August. Beer production in Africa

Slide of the month (SOTM) July. The growth of consumer markets in Africa