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

The African continent has seen tremendous growth in construction equipment & heavy machinery. Urbanization drives the demand for construction to meet residential, commercial, and infrastructure development needs.

We recently concluded a multi-country analysis and prioritization for a large European construction and industrial machine supplier. africon spent about three months meeting with key local decision-makers and experts. The findings were that the construction machinery industry in the African market is worth USD 900 million and excavators are the most popular type of machine in the continent.

After sharing our findings and giving tactical recommendations to the client, they were in a position to prioritize select countries.

Read previous SOTMs (Slides of the month) here.

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

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) March. Tanzania medical technology value chain

Medical technology markets in Africa offer great opportunities for local and international companies. africon recently completed a multi-country analysis for one of our clients interested in the sector. One of the countries we spotlighted in our country prioritization was Tanzania. Our client was interested in getting more insights into the value chain of medical technologies in the country.

Our findings were that two major distribution channels are used to reach end-users when distributing medical technology products. The first and the biggest avenue is the public channel, managed by Medical Stores Department (MSD). MSD is the authorized body responsible for procuring, storing, and distributing medical products in the country. 70% – 80% of the medical technology products pass through this channel. The second channel is the private channel which is dominated by private companies. 30% – 20% of the medical technology products pass through this channel.

Based on these and other findings, we shared the opportunities, route to market strategies, and tactical recommendations that would guide the client in strengthening their foothold in the second-largest market in the East African medical technology market.

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) February. Vehicles in operation in East African countries

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

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) February. Vehicles in operation in East African countries

Africa’s automotive market contains excellent opportunities for international companies.

africon recently completed a project for a producer of automotive and industrial components. A key question to gauge the market size for the client was the size of vehicle fleets (vehicles in operation/ VIO) in East Africa. In East Africa, Kenya had the largest vehicle fleet with 1.8 m vehicles in operation.

africon provided the client with a comprehensive overview of the market and clear recommendations on utilizing opportunities locally.

Read previous SOTMs (Slides of the month) here.

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

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) January. 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) November. Government health care expenditure in East Africa

Medical markets in Africa offer great possibilities for local and international companies. africon recently completed a multi-country analysis for one of the most reputable health associations in Africa. The study sought to gather information through interviews with key stakeholders and experts in Kenya, Uganda, Rwanda, Tanzania (including Zanzibar). In our research, we investigated the government budget allocated to healthcare in select countries. Our interview partners came from various backgrounds, including health care providers, regulators, government agencies, and medical equipment distributors. Our findings revealed that Kenya’s health budget is the highest among its neighbors. However, in Kenya, healthcare occupies the lowest share of the total government budget and GDP compared to the other countries.

Based on these and other findings, we shared the opportunities, insights, and tactical recommendations that would guide the client in strengthening the regional health care market.

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) 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) June. Labtech imports in East Africa

 

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

 

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

Africa’s booming population is creating vast opportunities, including significant demand for robust infrastructure. Consequent to this development, governments of many African countries have become more intentional about investing in improving and diversifying transport infrastructure. One of the most conspicuous areas is the railway sector, which has attracted many global players who seek to benefit from the emerging opportunities.

As experts on Africa business development, africon was consulted by a notable global leader in rail components manufacturing to explicate the existing rail system operations and current or future business opportunities in Nigeria. To get the best insights and evaluate the progress so far, we visited numerous railway sites with operating lines and ongoing construction projects across Nigeria. We also conducted targeted interviews with relevant stakeholders in the railway system.

As a result, africon was able to create a clear picture of the Nigerian railway system for our client. Our data included a view of the country’s historical railway development, key influencers in the sector, mapping of existing and planned rail lines across the country (drawn from the railway master plan), analysis of budgets, financing and expenditure trends, analysis of rolling stock fleet in detail, equipment, components demand as well as long-term demand projections. In addition, we looked closer into the system’s challenges and potential gaps that foreign players could potentially fill. Most importantly, africon charted the most effective route-to-market strategy for our client to be very competitive and well established in the market. We also identified reliable local partners for them to work with to achieve this even faster.

Overall, the railway system in Nigeria is gaining traction with a lot more attention and investments from the government. There are many ongoing and upcoming rail lines in the country. Though the Chinese firm’s interests are well represented, the Nigerian Railway Corporation and Federal Ministry of Transportation state that they are open and welcoming to more foreign suppliers and investors interested in the country’s railway business.

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) 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

Slide of the month (SOTM) April. Overview of the tech scene in select countries in Africa

 

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

The Nigerian automotive industry stands out compared to other African automotive industries – in almost every way, sometimes positively, sometimes negatively. The country is home to one of the largest vehicle parks on the continent with nearly 12 million units – around six times Kenya’s fleet. On the other hand, the country’s automotive industry is, in large parts, significantly more informal than that of peers such as South Africa and Egypt. This circumstance makes it a very challenging place to do business for many international automotive firms. However, the potential rewards for those succeeding in it are enormous.

We have completed many private sector projects in this space, including the latest one for a large multilateral organization. africon interviewed executives from more than 60 companies and conducted multiple surveys locally to identify funding/ engagement opportunities for the client.

Local manufacturing of both vehicles and components in Nigeria is presently in many areas complicated due to insufficient or poorly implemented regulation. However, some segments of the industry enjoy more favorable conditions, allowing for growing local manufacturing activity. The deciding factor is most often protection from cheap imports. Luckily, large parts of the market want a “natural” level of protection: neither domestic parts trade nor various workshops and digital services can effectively be imported. In most cases, local firms reap significant benefits, while international investors often perceive the risk to be too high.

Ultimately, africon presented a list and assessments of approximately 20 expansion projects in Nigeria, with which the client can engage to promote industry growth, job creation, and development. These projects include both local and international firms, early-stage ideas up until ready-to-invest undertakings. We hope to see many of these grow into shining examples of effectively utilized opportunities in Nigeria soon.

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 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

Slide of the month (SOTM) April. Overview of the tech scene in select countries in Africa

Slide of the month (SOTM) March. Operational and upcoming railway lines in Nigeria

 

 

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

While Africa’s automotive market contains great opportunities, numerous international automotive firms face challenges when doing business on the continent. A key reason is the very significant differences in the business environments in Africa, vis-à-vis those in other global markets.

africon recently completed a project on the Nigeria automotive industry, commissioned by a multilateral organization. A critical question that emerged was the age of vehicles in Nigeria. As many large component producers do not provide coverage for cars beyond a certain age, this metric is a crucial market determinant for many international companies. With an average age of 16 years, a large portion of the Nigerian vehicle fleet is “too old.” This highlights the need for holistic data on African markets to sufficiently understand market potentials.

After putting these market forces into consideration, africon provided the client with a comprehensive overview of the market and a list of potential opportunities locally.

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) June. Labtech imports in East Africa

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

Slide of the month (SOTM) April. Overview of the tech scene in select countries in Africa

Slide of the month (SOTM) March. Operational and upcoming railway lines in Nigeria

Slide of the month (SOTM) February. Import statistics of medical equipment in East African Community (EAC)