Archive d’étiquettes pour : Europe

Slide of the month (SOTM) July. Africa’s top imports in 2018

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There are numerous business opportunities and potentials that exist in Africa which companies can take advantage of. With our sole focus on the continent, we have looked into the African markets to see what sort of products are mostly imported in each market. For the past year 2018 we were able to come up with the following findings.

Over the last five years, Africa has been recording trade deficits. Data trends show that imports to and exports from Africa started increasing in 2017 after a decline in 2015. China, France, USA, Germany, and India have remained Africa’s top export partners over these years.

In 2018, Africa’s total imports were worth approximately 549 billion USD. The largest imported product (using the 4-digit category) was petroleum and mineral oils which was valued at approximately 60 billion USD – that is 11% of Africa’s total imports in that year.

The other top products imported by Africa are: Motor cars for persons (worth 17 billion USD), medicaments (worth 11.4 billion USD), telephone sets (worth 11.2 billion USD), wheat (worth 10.6 billion USD), motor vehicles for the transport of goods (worth 6.3 billion USD), rice (worth 6.3 billion USD), and parts & accessories for motor vehicles (worth 6.1 billion USD).

The largest importers on the continent are: South Africa (imports worth 93 billion USD i.e. 17% of Africa’s total imports), Egypt (imports worth 81 billion USD i.e. 14.8% of Africa’s total imports), Morocco (imports worth 51 billion USD i.e. 9.3% of Africa’s total imports), Algeria (imports worth 47 billion USD i.e. 8.6% of Africa’s total imports), Nigeria (imports worth 36 billion USD i.e. 6.6% of Africa’s total imports), Tunisia (imports worth 20 billion USD i.e. 3.7% of Africa’s total imports), Kenya (imports worth 16 billion USD i.e. 2.9% of Africa’s total imports) and Ghana (imports worth 12 billion USD i.e. 2.2% of Africa’s total imports).

In South Africa, the top three import categories excluding petroleum and mineral oils are: Motor cars, telephone sets, and medicaments. For Egypt, they are: Motor cars, wheat and meslin, and telephone sets. Nigeria’s other top imports are: Light-vessels fire-floats etc, wheat and meslin, and motor cars, while in Kenya, the other top imports are: Motor cars, medicaments, and flat iron.

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

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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) and Mr. Gilles Komi MAGLO (Entrepreneur of the African Diaspora).

africon GmbH partner & CEO Mr. Marc Zander will 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 of this 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 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 The Forum de Saint Louis

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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

africon CEO Marc-Peter Zander is PARLA expert trainer of the month

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africon CEO Marc-Peter Zander is an external PARLA expert on Africa’s cultural and economic sector and has decades of experience with the continent. If you have followed us for a long time, you may know that he has spoken on many occasions as a keynote speaker, panelist and moderator on culture in Africa. See more from our news section.

He has vast experience in market entry consulting, regional focus Africa, Africa´s economy, banking IT, FMCG, steel and packaging.  He is also a member of the International Advisory Network for Africa and has been working on Africa since 2002.

Since 2016, Parla and africon work together in consulting international firms on their cultural understanding with the key regions of Nigeria and Kenya.

Get to know more about him as well as his speaking portfolio here .

Sub Saharan Africa Workshop @METEC 2019: Successful premiere

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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.

africon and Wolk After Sales Experts join forces for Africa

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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.

Slide of the month (SOTM) March. Kenya’s construction and real estate sector

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africon GmbH was contracted by one of our clients and we successfully conducted a research on the aluminium industry in Kenya. We found out that the key drivers of this industry are the construction and real estate sectors in Kenya. Findings revealed that these sectors have experienced positive growth rates within the last five years and are expected to expand even further.

Kenya’s construction sector expanded by 8.6% and contributed approximately 6% to the country’s GDP in 2017. It is also one of the major sectors attracting foreign investors to the country. 

According to Deloitte’s construction trends report, Kenya has remained the leading country with the highest number of projects in East Africa for four consecutive years, with projects increasing by 78% from 23 projects in 2017 to 41 projects worth $38.2 billion in 2018. The major construction projects are in real estate, energy and power, and transport, sources also reveal that the Kenyan government is spending billions of dollars on transport projects as Kenya is expected to become the logistics hub of East Africa.

Challenges to this Kenya’s construction sector include: the frequent use of substandard materials, long procurement procedures, low project completion rates, and low technological knowledge. Despite these apparent challenges, continuous growth is expected in the sector as the Kenyan government plans to build 500,000 houses by 2022, and also to reduce corporate tax for developers who construct at least 400 units per year.

Kenya’s real estate sector is the 6th largest contributor to Kenya’s GDP, and was valued at $5.5 billion in 2017. The sector expanded by 6.1% in 2017 compared to 8.8% in 2016, and this slowed growth rate is due to the elections and reduced credit supply (as a result of capped interest rates). The construction of new private residential buildings in Nairobi increased from 9,054 in 2015 to 10,002 in 2016, while new public residential buildings rose from 45 in 2015 to 1,062 in 2016. Some of the challenges faced by Kenya’s real estate sector include inadequate sources of funding, high land costs, and infrastructure development costs. However, government initiatives such as digitization of the land ministry, removal of land search fees, and inclusion of affordable housing as part of Kenya’s big four agenda is likely to boost real estate development over the next few years

For more information, check out our other slides of the month and do not hesitate to contact us.

 

africon’s editorial publication in the ITA journal

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last October africon published its first editorial addressing the future of the Steel industry in East Africa at the 3rd journal edition of the International Tube Association. The article started by highlighting how East Africa distinguishes itself by economical growth and political stability in the region and being the least dependent on primary commodities such as gold or oil in comparison with other african regions. The East African region was projected to capture the highest regional economic growth over the past year in Africa. The article then went in depth to analyse those macro-economic factors and focused on the drivers of steel industry that promote economic growth in Africa and especially in East Africa.

Now you can read the full version of the editorial here or download it as a white paper

Download Whitepaper

Slide of the month (SOTM) February. Automotive parts imports in sub-Saharan Africa

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Automotive parts import Sub-Saharan Africa.

Let us look at the automotive market in sub-Saharan Africa narrowing down to the aggregate value of three main automotive service parts which are: Filters (consisting of air filters for internal combustion engines, as well as Oil or petrol filters for internal combustion engines), Spark plugs, and Brake parts. The total combined import value of these automotive parts in sub-Saharan Africa was $753 million in year 2017. Brake parts recorded the highest import value worth $388 million which is 52% of the total import value of the three selected automotive parts combined, while spark plugs were the least of the imports valued at $58 million.

Based on our analysis of the available data on automotive parts imports in sub-Saharan Africa, we found that South Africa, Nigeria, Angola, Kenya, and Ghana were the top five importers of filters, spark plugs and brake plugs into sub-Saharan Africa in the year 2017. South Africa being the largest market, accounted for 47% of these automotive parts imports worth $355 million, while Ghana being the fifth largest market was worth $21 million.

The major export partners were China, Germany, South Africa, Belgium and USA. However, the data from year 2007 shows that Germany was the largest exporter of these automotive parts to the Sub Saharan Africa region until 2013 when China took over as the largest exporter to the region. Brake parts were also the largest exports (of the three parts) from China and Germany while Filters were the largest exports from South Africa, Belgium and USA.

Slide of the month (SOTM) January. The automotive parts market in Nigeria

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SOTM. January

The Nigerian automotive industry appears to be an interesting market, as our research on the automotive parts market shows that the market size is worth USD 4.4bn or more.

The total vehicles in operation in Nigeria is currently estimated at 12.7 million, and Nigerian drivers spend an average of USD 350 on automotive parts per year.

Interviews conducted with various automotive experts in Nigeria also confirmed that the market for service parts accounts for the biggest share of the automotive market.