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)

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

Various markets in Africa offer great possibilities for international medical companies. africon recently completed a multi-country analysis to investigate the opportunities in medical equipment supply for a German manufacturer. A specific question that emerged was on the source of Labtech equipment in Kenya, Tanzania, Uganda, and Rwanda. We found out that Germany was the leading supplier of Labtech products in 2020 for these countries.

Based on these and other findings, we shared the opportunities, insights, and tactical recommendations that would guide entry and sales in the 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) 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)

Slide of the month (SOTM) January. The market for commercial vehicles in Kenya

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

Many African countries’ economic growth is highly dependent on international trade. A more efficient logistical system can greatly increase a country’s local economic value and as a result, create jobs and prosperity.

In this project, africon was contracted to analyse the logistics sector in Rwanda and Ethiopia. We aimed to identify the existing gaps and fields where the client, a development cooperation agency, could intervene to improve efficiency, thereby aiding job and wealth creation in these countries. We conducted primary and secondary research simultaneously. While analysing country information and industry reports, over 70 interviews were conducted in these countries with relevant players in the logistics field. These included logistics firms, governmental and regulatory bodies, associations and educational institutions.

Through the results of the research, we identified main challenges in key areas that have significant impact on the logistics sector in Rwanda and Ethiopia. Such areas were, for example, infrastructure, customs procedures, education, and digitalisation. The logistics landscape of both landlocked countries is very contrasting regarding the highlighted areas. Based on our findings, we could derive practical directions for measures to fill present gaps and thus strengthen the sector for the future while creating jobs, fostering private investments and promoting sustainability. All results were consolidated into a comprehensive report which contained tactical recommendations for the client.

If you have any questions about the sector or would like to discuss more, please contact us at info@africon.de

Read previous SOTMs (Slides of the month) here.

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)

Slide of the month (SOTM) January. The market for commercial vehicles in Kenya

Slide of the month (SOTM) December. The food, beverage and tobacco manufacturing industry in Nigeria

 

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

The digital economy in Africa continues to grow with some countries having significant digital infrastructure. Due to our vast experience and project work in Africa, we were recently invited to share relevant insights on the topic, “Opportunities in Africa’s rising digital economy”, at the Global DIGITAL FUTUREcongress Virtual on 25.02.2021.

Our presentation focused on the general growth drivers as well as the opportunities that exist in the thriving internet economy of Africa. We gave an overview of the tech scene on the continent which is an interesting market for German and European companies. One such insight was that Nigeria and Kenya have the largest tech sectors while Rwanda and Ethiopia are growth markets.

We were also able to share more tactical recommendations and insights that would guide prospective entrants into the market.

If you have any questions about the sector or would like to discuss more, please contact us at info@africon.de

Read previous SOTMs (Slides of the month) here.

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)

Slide of the month (SOTM) January. The market for commercial vehicles in Kenya

Slide of the month (SOTM) December. The food, beverage and tobacco manufacturing industry in Nigeria

Slide of the month (SOTM) November. The construction industry in Africa

 

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

Several African countries have ongoing and planned rail projects. Africa’s largest economy is developing the rail sector to improve the poor transport infrastructure. africon recently completed a project in the railway sector in Nigeria for one of our clients who manufactures rail components. The project aimed to give an overview of the industry in terms of ongoing and upcoming projects.

africon spent about 4 months meeting with key local decision-makers and experts in a very challenging market environment. The Nigerian railway network consists of 3,505 km narrow gauge lines and 364 km standard gauge lines. There are several operational lines with multiple ongoing inter-state and light rail projects across major cities in Nigeria. The figure below maps some of the operational lines which we covered in the course of the project. We also provided more invaluable insights & data and gave strategic recommendations about the sector to our client.

Below, you will also find some pictures that our team in Nigeria took.

If you have any questions about the sector or would like to discuss more, please contact us at info@africon.de

Read previous SOTMs (Slides of the month) here.

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

Slide of the month (SOTM) January. The market for commercial vehicles in Kenya

Slide of the month (SOTM) December. The food, beverage and tobacco manufacturing industry in Nigeria

Slide of the month (SOTM) November. The construction industry in Africa

Slide of the month (SOTM) October. The meat & fish sector in Nigeria

 

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

africon GmbH did an analysis of import statistics of medical equipment in East Africa for one of our clients in the sector. They were interested in understanding the supply and demand of hospital beds.

The findings were that the complex medical equipment market in EAC relies heavily on imports from various countries like China, Germany, and India. Kenya has the region’s biggest market followed by Tanzania and Uganda. According to sources, there also exists local manufacturing of standard hospital beds in EAC member states. However, our local research concluded that operating room beds are imported mostly from China and India due to lower prices from these sources. africon was therefore able to share the size of the market and provide recommendations as well as business connections for the client.

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) January. The market for commercial vehicles in Kenya

Slide of the month (SOTM) December. The food, beverage and tobacco manufacturing industry in Nigeria

Slide of the month (SOTM) November. The construction industry in Africa

Slide of the month (SOTM) October. The meat & fish sector in Nigeria

Slide of the month (SOTM) September. The soft drinks market in Kenya

 

Slide of the month (SOTM) January. The market for commercial vehicles in Kenya

Over the last couple of years, africon has implemented a vast range of projects in the automotive sector. Some of the projects have tasked us with analyzing the market for automotive components like filters and spark plugs, among others, for commercial and personal vehicles. We have conducted more than a hundred interviews with senior level industry players, parts distributors and automobile traders in different countries in Africa.

In East Africa, Kenya has been the automotive hub. In the last two and a half years, approximately 33,000 commercial vehicles have been sold in the country. Light- medium trucks are the leading segment in commercial vehicles, accounting for almost 11,000-unit sales over the past 2.5 years. Even though sales have been affected by the coronavirus pandemic, the industry shows positive signs of recovery. Kenya’s commercial vehicle assemblers might have even increased their output in 2020 compared to the previous year. Additionally, the government and stakeholders are still working on positive automotive policy adjustments. The sector in Kenya has space for significant growth, opening interesting opportunities for international firms.

In the project here, africon was able to provide market transparency, in-depth data and strategic recommendations for future sales efforts in the region.

Get in touch if you would like to know more about opportunities in Africa´s automotive markets.

Read other related SOTMs

Slide of the month (SOTM) October. Automotive industry in sub-Saharan Africa

Slide of the month (SOTM) June. Automotive Kenya vs. Nigeria

Read previous SOTMs (Slides of the month) here.

Slide of the month (SOTM) December. The food, beverage and tobacco manufacturing industry in Nigeria

Slide of the month (SOTM) November. The construction industry in Africa

Slide of the month (SOTM) October. The meat & fish sector in Nigeria

Slide of the month (SOTM) September. The soft drinks market in Kenya

Slide of the month (SOTM) August. Steel demand in Africa

 

Slide of the month (SOTM) December. The food, beverage and tobacco manufacturing industry in Nigeria

Prior to the Covid outbreak, manufacturing in Nigeria had been recovering from the 2016 recession, even though the sector still faces various challenges, such as intermittent power supply, infrastructural deficits, forex shortage and Naira devaluation. africon did a market analysis for a European food ingredient manufacturing company interested in understanding the industry in Nigeria. The project aim was to understand potentials in various market segments and to ultimately determine scale and scope of opportunities for our client. Within our research, we found that the food, beverage and tobacco sectors account for 38% of all manufacturing output in Nigeria. We were furthermore able to share the size of the market and identify 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 other SOTMs (Slides of the month) here.

Slide of the month (SOTM) November. The construction industry in Africa

Slide of the month (SOTM) October. The meat & fish sector in Nigeria

Slide of the month (SOTM) September. The soft drinks market in Kenya

Slide of the month (SOTM) August. Steel demand in Africa

Slide of the month (SOTM) July. The future of Africa’s independent automotive aftermarkets

 

 

Slide of the month (SOTM) November. The construction industry in Africa

Construction projects on the African continent are not only getting bigger, but more complex in nature. Some of the key drivers are economic growth, urbanization, industrialization, and the growth of the middle class. The transport sector continues to take the biggest share of the total construction projects in the continent, followed by real estate. In a bid to identifying suitable business partners in selected countries in Africa, we recently completed a local research project in the construction industry. This prompted us to do a deep dive and provide a detailed market outlook. After sharing our findings and giving strategic recommendations, we were in a position to prioritize different countries and sectors.

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

Read other SOTMs (Slides of the month) here.

Slide of the month (SOTM) October. The meat & fish sector in Nigeria

Slide of the month (SOTM) September. The soft drinks market in Kenya

Slide of the month (SOTM) August. Steel demand in Africa

Slide of the month (SOTM) July. The future of Africa’s independent automotive aftermarkets

Slide of the month (SOTM) June. Consumer goods across Africa

 

Slide of the month (SOTM) October. The meat & fish sector in Nigeria

A specific question that emerged in one of our recent projects in the food industry was how the meat sector in Nigeria looks like and whether it was a suitable target industry for our client. africon answered this question through a combination of industry knowledge from our experts on the ground, local research, as well as a comprehensive analysis of trade statistics. Our findings revealed that in Nigeria, most people consume red meat on the day they purchase it from open air market stalls, and only a small fraction is refrigerated. Fish in Nigeria is primarily traded live, fresh, frozen or smoked. However, 90% of the broiler chicken is slaughtered, processed and sold frozen. These findings, among others, helped us to rate various target markets for our client in comparison to each other. It laid the groundwork for africon to identify potential customers and partners for our client, therefore reducing cost, time and risk for them.

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

Read other SOTMs (Slides of the month) here.

Slide of the month (SOTM) September. The soft drinks market in Kenya

Slide of the month (SOTM) August. Steel demand in Africa

Slide of the month (SOTM) July. The future of Africa’s independent automotive aftermarkets

Slide of the month (SOTM) June. Consumer goods across Africa

Slide of the month (SOTM) May. Glass production in Africa