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Future of the Chemical Industry in Africa

  • July 2015
  • -
  • Frost & Sullivan
  • -
  • 19 pages

Future of the Chemical Industry in Africa : Impact on Chemical Companies

Africa is a rapidly growing market for products globally, and the chemical industry is expected to significantly benefit from this growth, especially the construction chemical paints and coatings and industrial adhesives sectors. The spurt in growth is the result of rapid urbanisation, a growing middle class, and rising consumer spending. This study gives a high-level view of 5 core focus areas in Sub-Saharan Africa: construction & infrastructure (construction chemicals; paints and coatings; and industrial adhesives), water and wastewater treatment, polymers/plastics/packaging, food and agriculture, and mining chemicals, providing trends that will drive growth in future and the current and future (2020) market size.

Introduction

Africa is seen as a rapidly growing market for products globally. Some high growth markets in sub-Saharan Africa (SSA) include Tanzania and Uganda, and depending on the rate of change in oil price and diversification from an oil-based economy, Nigeria and Angola. With the fall in oil price in 2014, Nigeria and Angola are expected to experience higher inflation in 2015.

Where independent markets are not necessarily attractive, trade zones make regions attractive. A particularly well-developed and attractive trade region is that of the East African Community, which aims to enhance regional integration by increasing trade, competitiveness, investment, and value-added production. Trade is enhanced by:

- Implementing the Customs Union Protocol to enhance intra-regional trade liberalisation and investment; and promote industrial diversification, economic development, and production efficiencies

- Facilitating trade by harmonising, standardising, and simplifying trade documentation and information

- Instituting anti-dumping measures and competition policy and law to enable free trade

- Allowing the re-export of goods without imposing export or import duties

- Removing and not introducing non-tariff barriers as they inhibit trade

- Understanding that standards and quality measures protect consumers and promote trade and investments.

Table Of Contents

Future of the Chemical Industry in Africa
Contents

Introduction .3

African Mega Trends Impacting Chemicals Companies.4

Challenges ..6

Industry Focus in SSA.7

Construction and Infrastructure Chemicals.8

Construction Chemicals8

Paints and Coatings ...10

Industrial Adhesives ...10

Water and Wastewater Treatment 12

Polymers/Plastics/Packaging13

Food and Agriculture.14

Mining16

Conclusion 17

Legal Disclaimer18

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