Archive d’étiquettes pour : Investment

Slide of the month (SOTM) July. Investment horizon in Africa

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africon GmbH has made over 130 interviews with sub-Saharan African steel manufacturers between 2016-2017. In these interviews, one of the key issues holding back Western manufacturers was the risk perception of management, reflected in the preferred payback periods of the machinery. The management of steel companies was hesitant to make too large investments in machinery that would require long payback periods, mainly because of political, regulatory and other economic risks. The preferred payback horizon is 2-5 years, whereas most high-end Western equipment requires 8-12 years of payback time in Africa. Providing machines that fits risk perception or intended payback period is one of the main challenges of western engineering companies.

 

 

Slide of the month (SOTM) May. Steel investment Africa

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During 2016 – 2017 africon GmbH conducted over 130 interviews with the management of sub-Saharan African steel manufacturers. In these interviews, we were able to discover that the current steel plant equipment and machinery market is dominated by low-price segment mainly consisting of Chinese and second-hand equipment. However, discussion with top managers on future investments in the next 10 years, the steel plant equipment landscape will change dramatically. Most of the new growth will come from mid-high price segment, with a total market share of over 50 % by 2025. This will open up great opportunities for steel plant engineering companies in sub-Saharan Africa.

 

 

africon participates in the GABF

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“The GABF aims at bringing together shrewd entrepreneurs, key opinion leaders and social influencers, CEO’s and selected politicians and non-governmental organisations to develop fresh commercial and social concepts that shape business, as well as economic thought and institutions.” (GABF)

The German-Africa Business Forum is a one-day event enabling exchange between German and African business communities. New potentials for cooperation can be identified during these days but also the interaction between economic, political and social development is discussed. Side by side with African and German politicians and businessmen Marc-Peter Zander, CEO of africon, will be speaking about opportunities of investment in Africa and share his experiences from the private sector.

The GABF will take place on the 23rd of March in the Adlon Kempinski Hotel in Berlin.

 

GABF_program_01.02.2017_REV

Slide of the month (SOTM) October. Numbers on steel in Africa

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The slide of the month October shows that more and more steel is used on the African continent while steel production does not increase significantly. This gap must be dissolved by imports but it also indicates interesting investment possibilities for the steel processing industry. Seeing the need of steel increasing, we can also resume that construction is going up since 2005.