Slide of the month (SOTM) May. The size of Africa’s travel retail market

/in , , /by

Global players majorly dominate the African travel retail market. africon advised one of the largest travel retail operators in the world on their Africa strategy. The project aimed to identify the market size, main distribution channels, and new and upcoming projects in the travel retail industry.

Our research revealed that the travel retail turnover experienced a significant drop of 64.3% in 2020. This was primarily due to the COVID-19 pandemic, which caused the cessation of air travel, the implementation of stringent lockdown measures, and a decline in travel demand worldwide. However, the market is forecasted to grow at a CAGR of 5 – 10% until 2030, due to increased air passenger traffic, improved income levels among the middle class, and favourable government policies promoting tourism and hospitality.

We also presented the client with an all-inclusive report mapping duty-free shops and other retail outlets in airports, railways, onboard airplanes and cruise ships in Africa. We helped them prioritize the key markets and distribution channels to guide upcoming regional sales endeavors.

What is the potential for you in Africa? If you have any questions, contact us at info@africon.de

 

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) April. More than 37bn € investment in upcoming rail infrastructure projects poised to transform Africa’s transportation network

Slide of the month (SOTM) March. 77% of German chemical companies see a big potential in Africa.

Slide of the month (SOTM) February. Green hydrogen opportunity in Africa

Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023

Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa

 

Slide of the month (SOTM) April. More than 37bn € investment in upcoming rail infrastructure projects poised to transform Africa’s transportation network

/in , , /by

The rapid population growth in Africa is generating ample prospects for international companies. One of our clients, a large travel retail operator, tasked us with creating their Africa strategy.
Being one of the largest distribution channels, the railway network has the potential to grow further in the next couple of years. Many African countries recognize infrastructure development’s role in supporting economic growth and development. As a result, investment in transport infrastructure, including railways, ports, and highways, has become a priority for many African governments.
The African Integrated High-Speed Railway Network (AIHSRN) has put forward an ambitious plan to connect all the capitals of African countries, as well as major cities and ports, through a high-speed rail network. The AIHSRN is part of the African Union’s Agenda 2063, a long-term strategic plan to transform the continent into a prosperous and integrated region.
We furnished our client with a comprehensive report with all the upcoming projects in the sector along with strategic recommendations based on the findings. Additionally, we identified key partners, offering guidance for future entry and expansion.
What is the potential for you in Africa? If you have any questions, contact us at info@africon.de.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) March. 77% of German chemical companies see a big potential in Africa.

Slide of the month (SOTM) February. Green hydrogen opportunity in Africa

Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023

Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa

Slide of the month (SOTM) November. Number of trade fairs in Africa

 

Slide of the month (SOTM) March. 77% of German chemical companies see a big potential in Africa

/in , , /by

How much-untapped potential does Africa possess, according to German chemical industry companies?

According to the current CHEMonitor trend barometer by CAMELOT Management Consultants and the trade journal CHEManager, 77%+ of the managers surveyed from the German chemical industry expect a significant increase in Africa’s standing in the sector. 86% regard Africa as a primary hub for raw materials, while 82% consider the continent a sales market.

Additionally, increased green energy from Africa will significantly contribute to achieving global climate targets. According to 85% of CHEMonitor respondents, Africa will produce enough renewable energy to supply itself and other regions making the continent an important strategic partner for Europe in terms of the successful implementation of the EU Green Deal.

There is still plenty of untapped potential in the chemical segment on the continent. This poses a great opportunity for companies interested in the sector.

Based on these and other findings, africon provides practical recommendations to guide clients in their Africa strategy. The chemical industry is one of the key sectors for africon, with more than 35 projects executed during the last years.

What is the potential for you in Africa? If you have any questions, contact us at info@africon.de.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) February. Green hydrogen opportunity in Africa

Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023

Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa

Slide of the month (SOTM) November. Number of trade fairs in Africa

Slide of the month (SOTM) October. Automotive battery markets in Africa

 

Slide of the month (SOTM) February. Green hydrogen opportunity in Africa

/in , /by

Did you know that Africa has the potential to produce 50 (Metric tonnes) Mt worth of green hydrogen per year by 2035?
Within a project with a client from the hydrogen mobility sector, we analyzed the potential for imports of green hydrogen from Africa. One of the key insights we found was that Africa would be producing about 50 Mt/year on green hydrogen per year.
This is due to the surging demand for clean-burning fuel as the world looks for alternatives to climate-warming fossil fuels; Europe is seeking to lessen its dependence on Russia’s natural gas, which has proved unreliable due to the Russia-Ukraine war and other global uncertainties.
This has posed a great opportunity for companies in the energy sector in Africa. By 2030, several countries can produce fuel by splitting water using renewable energy at a cost of less than 2€ a kilogram. This will only be made possible by harnessing the world’s best solar energy resource in Africa.
According to a study backed by the European Investment Bank, energy production is set to be in three major hubs in Africa; Egypt, the North-western hub (Morocco and Mauritania), and the South African hub (Namibia and South Africa). While plans to produce the fuel are most advanced in these nations, several other countries ranging from Algeria to Nigeria and Mozambique, have the potential to start production. The largest producer would be Egypt, with 20 million tons produced annually, followed by the Southern Africa hub with 17.5 million tons, where Morocco and Mauritania could together produce 12.5 million tons. About half of that could be exported, equivalent to 15% of Europe’s gas needs.
africon provided the client with a comprehensive market overview and facilitated them with identifying and accessing opportunities in the sector. We also gave them practical recommendations for penetrating the market.
What is the potential for you in Africa? If you have any questions, contact us at info@africon.de.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023

Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa

Slide of the month (SOTM) November. Number of trade fairs in Africa

Slide of the month (SOTM) October. Automotive battery markets in Africa

Slide of the month (SOTM) September. Agricultural exports from Africa

 

Slide of the month (SOTM) January. Africa will install 600 new printing and packaging machines in 2023

/in , , /by

In a recent project, our client had the following questions:

  • Are there opportunities for global players like us in Africa’s printing industry?
  • What is the demand for new printing and packaging machines in Africa?

In our project with a large printing machine supplier to analyse the opportunities in the sector we found that the printing industry in Africa is growing and will produce more packaging material locally. This will require capex investment to meet a gap of 15 million tons until 2023, resulting in an estimate of approx. 600 newly installed printing machines.

We did a multi-country analysis and prioritization for our client. We also identified prospective partners, thereby reducing their costs, risk, and time when setting up in the continent.

What is the potential for you in Africa? If you have any questions, you can contact us at info@africon.de

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa

Slide of the month (SOTM) November. Number of trade fairs in Africa

Slide of the month (SOTM) September. Agricultural exports from Africa

Slide of the month (SOTM) August. Beer production in Africa

Slide of the month (SOTM) July. The growth of consumer markets in Africa

 

Slide of the month (SOTM) December. Opportunities in the automotive manufacturing sector in Africa

/in , , /by

As the Africa intelligence partner for Automechanika Dubai 2022, we shared different insights during the AfriConnections session: Future opportunities in a changing African automotive aftermarket.

One of the slides from our presentation shed light on the automotive manufacturing sector. 20 years ago, South Africa was the only notable vehicle producer in Africa. Since then, Morocco has made tremendous progress and produced around 400,000 vehicles in 2021. Egypt has become more active as well, and countries in sub-Saharan Africa, such as Kenya and Ghana, are gearing up to become the next growth frontiers of the industry. With Africa’s vehicle fleet predicted to grow substantially over the next decades, the sector presents vast prospects for international firms.
We shared in-depth data and recommendations in the panel to help international firms in their Africa strategy. Get in touch if you want to speak more about opportunities for your company in Africa´s automotive markets.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) November. Number of trade fairs in Africa

Slide of the month (SOTM) September. Agricultural exports from Africa

Slide of the month (SOTM) August. Beer production in Africa

Slide of the month (SOTM) July. The growth of consumer markets in Africa

Slide of the month (SOTM) June. Blood transfusion landscape in Tanzania

 

Slide of the month (SOTM) November. Number of trade fairs in Africa

/in , , /by

How is the trade fair business developing in Africa, and what is expected in 2023?

That was one of the key questions for one of our clients in the sector. To answer this, we looked at the number of active trade fairs in the continent in 2022-2023. The top 4 countries, South Africa, Morocco, Kenya, and Nigeria, comprise almost 50% of all 455 trade shows. It is essential to know that African countries are non-homogenous, which is reflected in each country’s specific trade fair portfolio. Exhibitions range from food, packaging, construction, automotive, industrial goods, healthcare, and mechanical engineering, among other vital industries in Africa.
africon provided our client with a comprehensive overview of the market, multi-country analysis and prioritization, and strategic recommendations for future sales efforts on the continent.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) September. Agricultural exports from Africa

Slide of the month (SOTM) August. Beer production in Africa

Slide of the month (SOTM) July. The growth of consumer markets in Africa

Slide of the month (SOTM) June. Blood transfusion landscape in Tanzania

Slide of the month (SOTM) May. Construction projects in Africa

Slide of the month (SOTM) October. Automotive battery markets in Africa

/in , , /by

Africa’s automotive markets present significant opportunities for international companies. The COVID-19 pandemic negatively affected the market as it interrupted supply chains after governments set up travel restrictions.

Over the last decade, africon has implemented numerous projects in the automotive sector. Some of our clients have tasked us with analyzing the battery markets for commercial and personal vehicles. From our latest data, South Africa is the largest single market for automotive batteries, but sub-Saharan Africa (SSA) also presents a sizeable opportunity. The average automotive battery imports per year were USD 135 million for North Africa, USD 188 million for SSA, and USD 93 million for South Africa. These figures are average imports from 2019 to 2021. The leading suppliers were France, Spain, China, Germany, Turkey, and Korea. It is also worth noting that a few local automotive battery manufacturers exist in Kenya and South Africa.

africon provides automotive clients with comprehensive market overviews and helps them to identify and access opportunities in new application areas or product segments. We also give practical recommendations on penetrating the market.

Read previous SOTMs (Slides of the month) here

Slide of the month (SOTM) September. Agricultural exports from Africa

Slide of the month (SOTM) August. Beer production in Africa

Slide of the month (SOTM) July. The growth of consumer markets in Africa

Slide of the month (SOTM) June. Blood transfusion landscape in Tanzania

Slide of the month (SOTM) May. Construction projects in Africa

 

Slide of the month (SOTM) September. Agricultural exports from Africa

/in , , /by

One of the most vital sectors in Africa is agriculture because it provides employment for more than half of the population and food. The continent also has the most unutilized arable land in the world.

africon has executed many projects in the farming sector in the last decade. One common question we receive from our clients is about the exports of agricultural products from Africa to other parts of the world. Our findings reveal that, Cote d’Ivoire is the top country exporting cocoa, nuts, rubber and fruits. South Africa, Ghana and Kenya also follow, each country with its product category mix. The top exports from Africa are coffee, tea, cocoa, and cotton & Europe has been a principal landing place for this produce.

Many African governments have prioritized the growth of the agriculture sector. The rapidly growing population and economic activities in additional industrial sectors pose an excellent opportunity for international firms.

africon provides international companies a comprehension of the market challenges and offers solutions to position these companies optimally. We devise market strategies and give recommendations to companies interested in key markets in Africa.

Read previous SOTMs (Slides of the month) here.

Slide of the month (SOTM) August. Beer production in Africa

Slide of the month (SOTM) July. The growth of consumer markets in Africa

Slide of the month (SOTM) June. Blood transfusion landscape in Tanzania

Slide of the month (SOTM) May. Construction projects in Africa

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

Slide of the month (SOTM) August. Beer production in Africa

/in , , /by

Despite the economic downturn fuelled by the pandemic, international companies have been looking for opportunities in Africa’s $13 billion beer market. African brewers have strengthened their facilities in terms of capacity and heightened marketing efforts in 2021 and 2022, making Africa one of the fastest-growing beer markets.

africon conducted a multi-country market analysis for a European food ingredient manufacturing company interested in Africa’s food and drink industry. The project sought to highlight the market potentials for different segments and feature opportunities in the food & beverage industry. In our research, we investigated beer production on the continent. Five African countries made it to the top 40 beer-producing countries, alongside nations like China, Australia, and Germany. These were South Africa (#12), Nigeria (#20), Angola (# 31), Ethiopia (#35), and Cameroon (#36). Africa beer production grew by 7.3% from 2020 to 2021.

For our client, we sized the market, identified vital partners, and provided recommendations for future partnerships and sales efforts in selected countries.

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 growth of consumer markets in Africa

Slide of the month (SOTM) June. Blood transfusion landscape in Tanzania

Slide of the month (SOTM) May. Construction projects in Africa

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

Slide of the month (SOTM) March. Tanzania medical technology value chain