Business in Africa 2.0 – IHK Saarland

After the success of the first event, IHK Saarland has invited africon GmbH for the 2nd time to the topic Africa. This time the theme of the event was “Business in Africa 2.0” to which companies from Saarland were invited.

Mr. Zander, Partner and CEO of africon GmbH was invited as a speaker and presented concrete opportunities in Africa and recommendations for German SMEs on market entry of Africa Strategy. In the later exchange with the participants questions were discussed how to find the right partner in Africa, which countries have the greatest potential and how should a medium-sized company plan its Africa Strategy.

Successful conducted projects on the plastic sector in East and West Africa

In the past months africon conducted two market assessment projects and one very successful business trip to Kenya for major international players of the plastic packaging sector.

Promising future market in Nigeria

The two market assessment projects had Nigeria as their focus market and more than 100 interviews were conducted with all relevant players of the plastic packaging sector locally.
The results concluded from the analysis of all interviews and market data in Nigeria is very clear: the plastic (packaging) sector in Nigeria is very vivid and growing at a high pace. Nevertheless, the Nigerian market is highly cost conscious. Competition is set on pricing strategy: the cheaper the product, the more sales a company makes. Most manufacturers still shy away from cost increases even marginally. The majority of consumers do not care much about quality as they do have an open eye for the cost.

At the same time the future is certain to come with changes. The upper middle class is expanding and there’s a growing awareness on quality products among Nigerian consumers generally.Any high quality / high price level company entering the Nigerian market will need a targeted product awareness campaign to help realize the market potential for their products. Both end users and converters need some form of education on the use of the products.

Modest expectations in Kenya

For Kenya, which has only a quarter of the population that Nigeria has and which’s BIP is 5 times smaller, the picture looks a bit different. The local production of BOPP film is for example not meeting its expectation in terms of capacity as it stands at around 30,0000 tons per year in Nigeria. Also, the import of machinery to manufacture plastic film stands at $ 87m in Nigeria but only at $ 38m in Kenya. But with the growing food manufacturing sector in both countries it is expected for the plastic packaging industry to grow as well. Since importing ready-made plastic film comes definitely more costly at one point than local production.

For any questions regarding this project please feel free to contact our practice leader Ms Lena Schwoerer.

BRS Market Attractiveness Index for SME in Africa

Over the past decades, Africa has started its way to become a major emerging market. For companies from Africa and all over the world, this creates substantial opportunities. Unfortunately, the German “Mittelstand”, the backbone of its economy and proud ambassadors of the “Made in Germany” logo all around the world, still lacks behind with its engagement on the continent. Just over 1.000 companies from Germany are active in Africa. Reasons are manifold, but one is especially widespread and within our abilities to tackle: the difficulty of German “Mittelstand” firms to develop a structured approach to market entry strategies into Africa.

As many of these firms have never done business on the continent, questions such as “Where should we start?”, “Which countries do we need to consider?”, “What are the opportunities and risks of certain countries?” are key hurdles at an early stage of the market entry. To alleviate this challenge, BRS Institute of Bonn-Rhein-Sieg University of Applied Sciences, together with africon GmbH have decided to develop a country index designed specifically tailored to the unique requirements of “Mittelstand” firms. The index, named the “BRS Market Attractiveness Index SME Africa”, gives companies a comprehensive overview on African markets on various levels of detail to create awareness of opportunities, risks and potential starting points for a market entry. It thereby provides a vital starting point, from which a structured market entry strategy can be developed.

If this index interests you, come and join us at this year´s conferenceUniversities, Entrepreneurship and Enterprise Development in Africa” in Sankt Augustin, Germany, on from 13th to 14th September. Apart from a formal signing ceremony and the welcoming of further exciting project partners to the index team, the event will feature a speech on the African FMCG markets by africon CEO Marc Zander, as well as a range of other interesting agenda points.

We look forward to meeting you!

Investors challenge and interest in Africa

africon business analyst Mr. Al-Salafi has collaborated with The African Development & Investment Convention (ADIC) Mr. Mamora to produce an article about Investments and obstacles in Africa.

To read the article please visit the following link: Article 
https://adic.afidep.com/news-blog/366-investors-challenge-and-interest-in-africa.html