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) 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) 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) 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

 

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

One of the most vital sectors in Africa is agriculture because it provides employment for more than half of the population and food. The continent also has the most unutilized arable land in the world.

africon has executed many projects in the farming sector in the last decade. One common question we receive from our clients is about the exports of agricultural products from Africa to other parts of the world. Our findings reveal that, Cote d’Ivoire is the top country exporting cocoa, nuts, rubber and fruits. South Africa, Ghana and Kenya also follow, each country with its product category mix. The top exports from Africa are coffee, tea, cocoa, and cotton & Europe has been a principal landing place for this produce.

Many African governments have prioritized the growth of the agriculture sector. The rapidly growing population and economic activities in additional industrial sectors pose an excellent opportunity for international firms.

africon provides international companies a comprehension of the market challenges and offers solutions to position these companies optimally. We devise market strategies and give recommendations to companies interested in key markets in Africa.

Read previous SOTMs (Slides of the month) here.

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

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

Slide of the month (SOTM) June. Blood transfusion landscape in Tanzania

Slide of the month (SOTM) May. Construction projects in Africa

Slide of the month (SOTM) April. Demand for heavy machinery in Africa

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

Despite the economic downturn fuelled by the pandemic, international companies have been looking for opportunities in Africa’s $13 billion beer market. African brewers have strengthened their facilities in terms of capacity and heightened marketing efforts in 2021 and 2022, making Africa one of the fastest-growing beer markets.

africon conducted a multi-country market analysis for a European food ingredient manufacturing company interested in Africa’s food and drink industry. The project sought to highlight the market potentials for different segments and feature opportunities in the food & beverage industry. In our research, we investigated beer production on the continent. Five African countries made it to the top 40 beer-producing countries, alongside nations like China, Australia, and Germany. These were South Africa (#12), Nigeria (#20), Angola (# 31), Ethiopia (#35), and Cameroon (#36). Africa beer production grew by 7.3% from 2020 to 2021.

For our client, we sized the market, identified vital partners, and provided recommendations for future partnerships and sales efforts in selected countries.

If you have any questions or concerns, you can contact us at info@africon.de

Read previous SOTMs (Slides of the month) here.

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

Slide of the month (SOTM) June. Blood transfusion landscape in Tanzania

Slide of the month (SOTM) May. Construction projects in Africa

Slide of the month (SOTM) April. Demand for heavy machinery in Africa

Slide of the month (SOTM) March. Tanzania medical technology value chain

 

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

africon has attended hundreds of events, conferences, and webinars. Our sector experts speak and provide thought leadership in some of these forums. In a recent webinar, we presented the opportunities for German companies in Africa. One of our slides focused on the growth of consumer markets in the continent.
Over the past 10-20 years, consumer goods markets in Africa have become increasingly interesting for international companies. Urban populations are growing rapidly across Africa, driving modernization and economic development. More than 34 countries now have an urbanization rate above 40%. Total consumer spending has increased sharply, which indicates an increasing demand for consumer goods and services and a higher propensity to consume. The growing middle class in most African countries like to shop in their free time and value brands for their high quality. As a result, the expansion of retail chains and other outlets has developed strongly in Africa. This poses an opportunity for companies in the sector.
At the end of the webinar, we presented some case studies and gave strategic recommendations for companies interested in key markets in Africa.

Read previous SOTMs (Slides of the month) here.

Slide of the month (SOTM) June. Blood transfusion landscape in Tanzania

Slide of the month (SOTM) May. Construction projects in Africa

Slide of the month (SOTM) April. Demand for heavy machinery in Africa

Slide of the month (SOTM) March. Tanzania medical technology value chain

Slide of the month (SOTM) February. Vehicles in operation in East African countries

 

Slide of the month (SOTM) January. Estimated number of converters in select countries in Africa

 

Estimated number of converters in select countries in Africa

The printing industry in Africa is growing, although a few global players dominate the industry. We had shared another Slide of the Month (SOTM) that gave more insights into the Printing industry in West Africa.

After carrying out many projects in Africa’s printing and packaging industry, we have collected lots of data over the years. We recently worked on a large printing machine supplier’s project to analyze the sector to find potential liaisons and clients.

Our research analyzed the number of converters in select countries in Africa. We chose countries based on a range of specific weighted factors relevant to the research. The findings were that South Africa tops the list with 60 converters, followed by Egypt with 50. The slide also shows the data for the other countries.

These findings helped us to rate different markets for the clients. It also enabled us to identify prospective partners and clients thereby reducing their costs, risk, and time when setting up in the continent.

If you have any questions or concerns, you can contact us at info@africon.de

Read previous SOTMs (Slides of the month) here.

Slide of the month (SOTM) December. The dairy industry in Ghana

Slide of the month (SOTM) November. Government health care expenditure in East Africa

Slide of the month (SOTM) October. The printing industry in West Africa

Slide of the month (SOTM) September. The Nigerian rail industry

Slide of the month (SOTM) August. The Nigerian automotive industry

 

 

Slide of the month (SOTM) December. The dairy industry in Ghana

A considerable amount of prominent global players dominate the food and beverage industry in Africa. africon did a market analysis for an European food company interested in understanding the industry in Ghana. The aim of the project was to understand the different segments and to find areas of opportunities. In our research, we looked at the dairy industry in Ghana. We found out that the market is dominated by imported processed products. Per capita milk consumption is low at 8 kg compared to Africa’s average of 35 kg. Based on the findings, africon was able to provide an overview of the application industry for our client and give strategic recommendations. We identified key players and partners to provide direction for future sales efforts in the region.

If you have any questions or concerns, you can contact us at info@africon.de

Read previous SOTMs (Slides of the month) here.

Slide of the month (SOTM) November. Government health care expenditure in East Africa

Slide of the month (SOTM) October. The printing industry in West Africa

Slide of the month (SOTM) September. The Nigerian rail industry

Slide of the month (SOTM) August. The Nigerian automotive industry

Slide of the month (SOTM) July. The age of vehicles in operation in Nigeria

 

Slide of the month (SOTM) October. The printing industry in West Africa

A handful of prominent global players dominate the printing industry in Africa. The continent has significant potential with an overall printing machine market of about USD 850 million. While some African markets such as South Africa, Egypt, or Nigeria have established printing industries, smaller countries remain unserved.

africon was contracted by a large printing machine supplier to analyze the printing sector and to identify leading firms and distributors of printing machines in West Africa. The goal was to find the most appropriate partners and potential customers for the client.

Therefore we conducted primary and secondary research. While analyzing country information and industry reports, we researched several contacts and ran screening interviews. We generated a shortlist of approximately ten potential distributors or partners. We organized a business trip, with the client to meet these companies and gain valuable insights on the ground. After the trip and by the end of this project, the client understood West Africa’s position in the printing machinery market. They got new sales leads and choose one local partner out of two shortlisted ones fulfilling their requirements and showing strong interest in a long-term cooperation.

If you have any questions or concerns, you can contact us at info@africon.de

Read previous SOTMs (Slides of the month) here.

Slide of the month (SOTM) September. The Nigerian rail industry

Slide of the month (SOTM) August. The Nigerian automotive industry

Slide of the month (SOTM) July. The age of vehicles in operation in Nigeria

Slide of the month (SOTM) June. Labtech imports in East Africa

Slide of the month (SOTM) May: The logistics sector in Rwanda and Ethiopia