Enormous potential for Africa’s wire, cable & tube industries

Africa boasts enormous potential for increased trade in wire & cable, tube & pipe related industries. Market observers have noted that in many African markets the business environment is improving, and the implementation of structural reforms is leading to increased business confidence.

Those were some of the ideas discussed at this year’s Africa Wire, Cable & Tube Conference.

CRU and the Southern Africa-German Chamber of Commerce and Industry (AHK), along with leading global trade shows, Wire & Tube as lead sponsor, held the Africa Wire, Cable & Tube Conference, on 11-13 November in Johannesburg, South Africa.

This important inaugural event is an opportunity for the local industry and stakeholders to meet with the international supply chain, and discuss the main trends impacting the global market and how they can be applied to the opportunities and challenges being faced across the continent.

To see the agenda, check here

The event brought together people from all over the globe with an interest in the wire, cable and tube industry.

Some of the topics addressed included

  1. Understanding Africa’s wire & cable, tube & pipe production, trade and supply chain
  2. The importance of the industry’s reliance on wire, cable, tube and pipe for African development
  3. Update on the expected consumption trends in Africa, of high wire and tube consuming industries: Mining, Utilities, Oil & Gas, Construction & Infrastructure
  4. Latest global technological advances in wire, cable, tube and pipe manufacturing, and how they can be applied in African operations
  5. Key considerations for the global wire, cable, tube and pipe supply chain when considering investing in African operations/distribution
  6. Technical agenda dedicated to technical showcases that highlight wire & cable or tube & pipe technology advances relevant to African operations

The africon team was very present as a supporting sponsor. CEO and Partner Mr. Zander also spoke about the Potential for growth in Africa in wire and cable or tube and pipe industries.

To see more insights about topics, speakers and the overall conference, see here

How to successfully enter the African Market: “Mittelstandsindex Afrika” launched

Africa is one of the world’s largest and most diverse continents: 54 countries, rich cultures, stunning landscapes, and hundreds of ethnic groups speaking a total of more than 2,100 languages. Africa is considered an emerging continent that offers businesses various opportunities to invest successfully. In order to help German small and medium sized enterprises (the “Mittelstand”) to enter the African markets, the BRS Institute at the Bonn-Rhein-Sieg University of Applied Sciences (H-BRS), africon GmbH, the Federal Association of Medium-Sized Enterprises (BVMW) and Nexia International released the “Mittelstandsindex Afrika” (SME Index Africa).

It was presented to the public on October 15, 2019 at the roadshow “Successful to Africa” ​​organised by BVMW in Korntal near Stuttgart and received a very positive response from the participants in the SME sector.

The “Mittelstandsindex Afrika” provides a rating for 34 African countries, which cover 96 percent of the continent’s economic output. Based on a variety of weighted criteria, the index summarizes the attractiveness of African countries in an overall rating specifically tailored to the needs of German SMEs. The ratings allow companies to estimate the attractiveness of business activity in the respective country.

The An-Institut of the H-BRS is not alone in its assessment that Germany is currently not among the frontrunners in terms of investment in Africa. “At the EU and UN, G8, G20 and many other international organizations and industrialized countries such as China and Japan, Africa have long been at the top of the agenda,” says Professor Dr Jürgen Bode. The German Federal Ministry for Economic Cooperation and Development (BMZ) has recognized the “unique opportunities” and the “great potential” and wrote in 2017: “About half of the 20 fastest growing economies are located there. By 2035, Africa will have the largest workforce worldwide. This is where the global markets, the customers and the employees of the future are growing.” The Federal Ministry of Education and Research (BMBF) has also been pursuing a focused “Africa strategy” since 2018. The “Mittelstandsindex Afrika” aims to support the German “Mittelstand” (SME sector) in its own quest to expand in Africa by raising awareness about opportunities, creating transparency at an early stage by providing a guideline for a structured approach to the African markets.

The “Mittelstandsindex Afrika” draws its information from 55 input factors consisting of specifically gathered primary data and existing secondary data sources. These are summarized in 16 “indicators” for SMEs, which in turn are condensed into three “key indicators”. These “key indicators” – “Scale and Scope of Opportunities”, “Getting into the Market” and “Navigating inside the Market” – give rise to a country rating that allows a mid-sized company a quick overview of each country’s business appeal. A special feature of the “Mittelstandsindex Afrika” is the evaluation of factors and indicators against the background of qualitative expert interviews with medium-sized companies, state institutions and chambers and associations.

The key indicators

Scale and Scope of Market Opportunities

Before a medium-sized company from Germany concretely examines a market entry in an African country, it has to find out whether the market offers the necessary demand for its products or services. The first key indicator “Scale and Scope of Market Opportunities” helps: It measures the size, growth rate and share of interesting market segments of B2B (industrial, agricultural, services) and B2C sectors, while keeping in mind the strengths and weaknesses of the German “Mittelstand”. In addition, this key indicator examines the potential of an African country to serve other countries in its vicinity as a hub. Overall, the company gets a very good first impression of the relative market opportunities that can be expected from each rated country.

Getting into the market

Once a company identifies a country with promising opportunities, it has to plan how it can actually enter the market. Many factors can make it more difficult or easier to do so. The second key indicator “Getting into the Market” measures the conditions in the respective African countries with regards to the question “what does a firm need to enter a market and how easy are these factors obtainable in the country?”. With this information, a business can gain a first comprehensive view of what to expect in terms of resource requirements and complexity when entering the respective market.

Navigating inside the market

After entering the market, it is crucial for success to prove yourself in the competition, to work efficiently and to expand. The third key indicator “Navigating inside the Market” showcases how easy or difficult it is to do exactly that: Grow successfully in the market, taking the perspective of the “Mittelstand”. This key indicator thereby helps to better assess the situation on the ground.

At africon, we are convinced that this index can tremendously support German – and other – SMEs or the “Mittelstand” to reduce complexity in entering African markets.

To learn more about the index check here www.mittelstandsindex-afrika.de

African Investment Day opens doors into francophone Africa focusing on Congo!

Francophone Africa focus Congo – Ready for Business!

Patroned by the ministry of foreign affairs of Congo DRC and chaired by Experts of the African continent, the African Investment Day DE is the first conference exclusively paneled by experts from the continent and dedicated to open and develop strong trade and investment ties, open doors into francophone Africa with a focus on Congo and a proactive approach by the panelists to further promote francophone Africa and its virgin markets. Investors and Experts will get first hand access into the markets in consideration to investment profile and macro trends.

africon CEO and Partner Marc-Peter Zander will be speaking at the African Investment Day on 29th November 2019. The African Investment Day will provide attendees with pragmatic insights, market entry strategies and in-depth expertise from panelists currently engaged on the continent as well as in Europe. The discussion will also focus on why the German “Mittelstand” is not yet in francophone Africa. africon has consulted for more than 60 clients with their Africa strategy. Within various projects the services varied from market research up to a full development of an Africa strategy. africon CEO and Partner Marc-Peter Zander will share extensive insights and the potentials for the German Mittelstand. He will also share his view on why German companies are still hesitant on making entry to Africa. If you really want to deep dive in the African potential particularly francophone Africa, then you cannot afford to miss this.

The African Investment Day (Deutschland) brings together African CEO’s, political, social leaders and entrepreneurs with Germany’s private investment sector to share ideas and network on potential trade and investment opportunities on the African continent. This year’s particular emphasis is placed on Congo.

Attendees will have the chance to forge long standing bonds for cooperation to de-risk projects, generate win-win results and positive impact for all stakeholders in a thriving economic environment.” These African CEO’s, politicians, influencers, entrepreneurs and non-governmental organizations will help to develop and guide attendees to create fresh commercial bonds to shape business and further increase the commercial cooperation.

Read about africon at the Africa Investment Day in 2018 which also brought together African CEO’s, political, social leaders and entrepreneurs together with Germany’s private sector investors to share ideas and network on potential trade and investment opportunities on the African continent. Register here

If you really want to attend this event, we are happy to inform you that you can use our code Africon2019 to get 80% discount on tickets for the event. We have 4 discount codes up for grabs so make sure you are among the first to redeem it!

africon CEO Marc-Peter Zander to speak at the mitafrika Business Forum

The “mitafrika Business Forum” will take place on 20.11.2019 in Nuremberg. mitafrika is an initiative of NIfA (Nürnberger Initiative für Afrika), which was called upon to do educational work so that the full potential of Africa can be exploited by German companies.

mitafrika would like

  • to contribute to strengthening the role of the African diaspora in Germany in order to position it as a bridge-builder for sustainable trade relations between Africa and Germany.
  • to bring German SMEs and African entrepreneurs together in the diaspora and promote a common approach to the African market.

The forum will be moderated by Mrs. Miranda OBEN, Founder and CEO of “The returnees Project“, Mr. Georg ESCHER (Editor/Foreign Policy commentator at Nürnberger Nachrichten and Expert on Africa), Mr. Gilles Komi MAGLO (Entrepreneur of the African Diaspora).

africon GmbH partner & CEO Mr. Marc Zander will also be speaking at the event. With more than 20 years of living, working and doing business experience with Africa in international organization such as the MAN Group and Wincor Nixdorf, Mr. Zander developed a strong understanding for a highly interesting market. His believe in the continent’s potential, the increasing interest of companies who are hesitating but willing to enter business relations with Africa as well as his entrepreneurial spirit led him to found africon Ltd. as a startup company in 2010.

Mr. Zander will be sharing his knowledge on insights about strengthening the relationship between Germany and Africa.

Some of the questions that will be addressed are:

  • Why Africa?
  • How do we tap Africa’s potential efficiently?
  • Which business areas are particularly attractive for German companies?
  • What needs to be done to provide better access for German companies in Africa?

Learn more here

International dialogue on creativity and innovation from Africa

International dialogue on creativity and innovation from Africa The Forum de Saint Louis / Senegal in Berlin from 19.09.-21.09.19

Held annually in different countries, the Forum de Saint Louis is a conference that brings together representatives from Africa’s creative industries, politics and science with multipliers from around the world. Founder and president of the forum is Amadou Diaw, who also founded 1992 very successfully the first private business school in West Africa, the Institut Supérieur de Management (ISM Dakar). At this year’s forum panels and presentations discussed what makes Africa strong and how this affects the future development of Africa.

Particularly noteworthy are the examples of successful entrepreneurship, such as the company of the Senegalese top chef Pierre Thiam. He cultivates the almost forgotten crop type “Fonio” that is healthy and robust against drought. The product is already very successfully exported to the US. Also examples of sustainable architecture were impressive. Filmmaker Volker Schlöndorff presented his documentary on the agricultural scientist Tony Rinaudo, who has developed a method for reforestation of dehydrated soils in the Sahel region. Speakers such as Rama Yada, former French Secretary of State and UNESCO Ambassador to France, or Andre Azoulay, advisor to the King of Morocco, and Mouna Kadiri, Director Africa Development Club of Attijariwafa Bank, provided further insights into the political and economic developments on the continent.

 Monika Gerdes, (africon), talking to Inge Herbert, Head of Sub-Saharan Africa and Middle East North Africa at Friedrich Naumann Foundation for Freedom.
Monika Gerdes (africon ) speaking to Ingo Herbert, German Ambassador of Bukina Faso

CRU to host Africa Wire, Cable & Tube conference

CRU to host Africa Wire, Cable & Tube conference – the first major gathering designed to boost wire and cable trade and productivity across Africa. As international interest in African development continues to grow, the inaugural CRU Africa Wire, Cable & Tube Conference is perfectly timed to address the opportunities for companies looking to boost their business with clients and partners in the African wire & cable industries.

The inaugural Africa Wire, Cable & Tube Conference, co-organised by CRU and The Southern African-German Chamber of Commerce and Industry (AHK), will be held on 11-13 November 2019 in Johannesburg, South Africa. This unique partnership is the basis for creating an event in which the international wire, cable, tube and pipe supply chain can meet and establish new trade partnerships with key African stakeholders.

The conference will offer delegates a broad understanding of the major global trends across the wire & cable and tube & pipe industries, and how these are being evidenced across Africa. CRU’s market experts will provide insights into the economic outlook and risks to industrial growth.

Discussions at the conference will explore the main trends impacting the global steel, copper and aluminium wire, cable and tube products and what this means for Africa. Delegates will also be brought up-to-date on the expected consumption trends within Africa for these products in mining, utilities, oil and gas, construction and infrastructure.

The agenda will also offer a day of technical showcases, with industry experts exploring the latest global technological advances in wire & cable, tube & pipe manufacturing, and how this can be applied to African operations.

Wire and Tube Düsseldorf, the world’s largest trade shows in this field, are lead sponsors of this important new conference. Many other international companies have also confirmed their participation in the conference and exhibition including Aurubis, SGS and Sikora. Companies registered to attend already include Niehoff, Rosendahl Nexrom, Kazakhmys and Richards Apex.

The inaugural Africa Wire, Cable & Tube Conference will be held on 11-13 November 2019 at the Emperors Palace, Johannesburg, South Africa.

Please visit http://bit.ly/2K9VWvD for more details and to book your place.

 

Sub Saharan Africa Workshop @METEC 2019: Successful premiere

African and German firms discuss market potential in Africa

Key players from Africa and Germany exchanged ideas on how to do business in Africa at the METEC 2019 Sub Saharan Africa Workshop. This workshop focused on the challenges and opportunities of the African metallurgy market. Speakers from a variety of African and European countries and companies were invited to hold presentations and participate in panel discussions thus giving the international audience an excellent insight into the African markets. The METEC Sub Saharan Africa Workshop took place for the first time on June 26th, 2019 during the METEC trade fair in Dusseldorf, Germany. It was initiated and organized by africon GmbH in close cooperation with Messe Düsseldorf and “The Mechanical Engineering Industry Association” in Germany (VDMA) represented by Dr. Timo Würz, Managing Director of VDMA Metallurgy. More than 50 attendees participated in the high-level workshop.

The Event

The event was characterized by an open and lively exchange between all participants and panelists. Opinions were exchanged, similar and differing ones debated, and many conclusions drawn. Several key challenges not only to European firms, but to African nations and industries were identified.

The following recommendations arose:

  1. European firms should consider Africa as a market. Although often small and sometimes challenging, some African markets can be very profitable and provide huge long-term growth opportunities. Many Africans already appreciate European quality.
  2. International firms have to understand that Africa is a huge and diverse continent. Especially smaller firms will not be able to deal with all countries at once. Clear priority countries have to be defined early on.
  3. Skills are a critical bottleneck locally. Training and education for staff is a key to success. Organizations like the German VDMA are in a position to support here as well.
  4. Providing adequate aftersales service is key for EU machine suppliers to African customers. To achieve this at reasonable costs, teaming up with other suppliers or utilizing locally present external service providers can be beneficial. Creating service hubs in certain countries can be equally help. E.g. Kenya can be used as a hub for East Africa.
  5. German firms often have to show flexibility in their commercial terms and conditions, as well as showcase cultural understanding for the other involved parties.
  6. German firms – wherever possible – have to check on their pricing models as this is still a huge issue. In that context, modular/scalable solutions are often highly appreciated. Offering German solutions made in lower cost countries like India can be interesting entry level options as well.

“As africon, we were very pleased to see a lively event with valuable insights for both existing market players and new entrants. We hope the valuable contacts exchanged on the event will bear fruits in future”, summarizes Mr. Marc Zander CEO and Partner africon GmbH.

More Details about the Programme

Panel 1 addressed: Needs and expectations of German/international metals production, metals processing and metallurgical machinery sectors when looking into doing business in Africa (e.g. technology, education & training, competition, etc.)

The Panelists included Dr. Tim Nikolaou (Managing Director, Frech Group, Germany), Mr. Cedrick Lusaka (Area Sales and Project Manager – Africa, Maschinenfabrik Herkules GmbH & Co. KG, Germany), Mr. Solomon Mulugeta (Director, Ruhe Consult and General Manager, Ethiopian Association of Basic Metals and Engineering Industries), Dr. Norbert Völker (VDMA department of educational policy / Skilled workers for Africa Project Manager), Mr. Glen Dikgale (President, South African Institute of Foundrymen (SAIF), South Africa. The Panel was Moderated by Marc Zander (CEO & Partner, africon GmbH).

Panel 2 addressed: What the African markets offer to and need from German/international metallurgy, steel casting and metal companies willing to start business in Africa? (e.g. market potential, financing, local support)

The panelists included  Mr. Till Schreiter (Managing Director, ABP Induction Systems GmbH, Germany), Mr. Bobby Johnson (Sector Chairman, Kenya Association of Manufacturers KAM, Metal & Allied Sub Sector as well as Director, Steelmakers ltd, Kenya), Mr. Ime Ekrikpo (Director Steel & Non-Ferrous Metals Department, Ministry of Mines & Steel Development, Nigeria), Mr. Gupta Gagan Santosh (Chairman, Kamal Steel Group, Tanzania), Mr. Dieter Brandstätter (Managing Director, ANDRITZ Maerz GmbH, Germany ). The panel was moderated by Friedrich Wagner (VDMA department of foreign trade).

For any more info, do not hesitate to contact us.

Bertrand Mignot joins africon GmbH advisory board

africon GmbH prides itself in having a very experienced advisory board. The advisory board which has significant long-term Africa experience guides and advises africon GmbH in its current growth phase and contribute with ideas, contacts and local know how. We are very pleased to have another member to our board, Mr. Bertrand Mignot. Mr. Mignot was a Senior Consultant for the German Development Cooperation (GIZ). He was formerly in management roles at Deutsche Bank, Renault Nissan Bank, First Bank of Nigeria, Rawbank. His main focus is on financial services, IT and health. He has a BSc Business and Engineering from University of Coventry and an MBA from Mannheim Business School. We look forward to having Mr. Betrand Mignot in our advisory board and strengthening the growth of africon.

africon and Wolk After Sales Experts join forces for Africa

We are proud to announce that africon GmbH and Wolk After Sales Experts are joining forces for Africa.

Both German consulting companies are leaders in their respective fields, namely global automotive after sales industry and African business environment. Together Wolk and africon will be able to provide clients with comprehensive information and consulting support across the continent.

Since the beginning of its operations in 1994 Wolk After Sales Experts has grown into a consulting powerhouse well known to both vehicle manufacturers and independent aftermarket operators. Thanks to carefully built network of partners across Europe, Wolk monitors automotive markets in 35 countries – from Portugal to Russia and from Norway to Turkey.

In one world economy our clients need support not only in Europe, but on the other markets as well. Our cooperation with africon will allow us to include data from Sub-Saharan Africa into our AFTER SALES ACCESS aftermarket business intelligence tool. This will be a major asset for any automotive company aiming at creating or improving its distribution network in Africa” explains Zoran Nikolic, Managing Director at Wolk After Sales Experts.

africon GmbH, established in Germany in 2011, currently has offices in Nigeria, Kenya, Tanzania and South Africa. The company employs a team consisting of 7 nationalities speaking more than 10 local languages while running a network of more than 50 consultants in the African region. Over the past 5 years africon conducted more than 20 automotive projects in Africa.

The African automotive markets have been growing with more than 6% over the past years and offer great chances for global operating companies. After various independent aftermarket projects in Africa, africon could obtain significant data and know-how on African markets like Nigeria and Kenya which we are happy to offer to the excellent network of Wolk After Sales Experts” states Marc-Peter Zander, CEO & Partner at africon GmbH. Mr. Zander will be also a keynote speaker during upcoming Aftermarket Forum 2019: Going global! It is a top-level automotive industry event taking place on April 17th in Frankfurt am Main, Germany and organized by Wolk After Sales Experts. This year’s edition will focus on market snapshots of different regions of the world and Sub-Saharan Africa will be covered by the representative of africon.

In day-to-day business operations Wolk After Sales Experts and africon together will provide clients with exclusive market research, market intelligence and consulting projects in African countries.

africon presents on “Independent Aftermarket” in Frankfurt

Over the past 4 years africon has been supporting IAM (Independent After Markets) automotive clients for their Africa growth strategy with research and data. A clear focus has been on the markets Nigeria, South Africa and Kenya where africon supported clients in the business fields of filters, spark plugs and engine parts to grow their business.

Within a forum organised by the company Wolk After Sales Experts, Marc Zander, CEO & Partner at africon presented the chances in Africa for IAM companies and recommended the following key points to observe with a market entry into Africa: Increasing know how on the African market to understand the market value chain; increasing sales efforts to be closer to clients and partners; selection of key distributors who also serve the informal markets.

“Over the past 5 years Africa has been growing with more than 6%. This offers great chances for automotive companies in the IAM sector”, concludes Marc Zander.