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africon in agrofood

africon presence at agrofood event in Lagos, Nigeria

The agrofood event took place alongside the plastprintpack event from the 26th to 28th of March, 2019, featuring over 120 exhibitors from 24 countries. Africon was part of the 2,094 visitors in attendance, and was well represented by our Nigerian team.

Asides the display of new technologies and products by exhibitors, the event included a very insightful 3-day conference, where industry experts shared their knowledge and foresight about different topics relating to the food and beverage processing, plastics and packaging business in Nigeria.

According to africon representatives, it was such an interesting and insightful event, and they had great  interactions with many exhibitors and visitors .

Slide of the month September – Woodworking machinery importation

During a recent project conducted by africon with focus on the wood working machinery market in Nigeria, africon GmbH identified 107 furniture manufacturing companies and 14 machine distributors focusing specifically on the furniture manufacturing market.

By holding expert interviews with a big number of manufacturers and distributors it became quite clear that the furniture manufacturing sector in Nigeria is very much quality oriented when it comes to purchasing machinery. This stands in contrast to many other industrial sectors that are clearly driven by price when it comes to purchasing e.g. in the steel industries.

The slide of the month August 2017 shows that during economically difficult periods price is starting to become the underlaying factor even though quality is still considered to be very important. Therefore, the countries exporting high quality machinery have lost a big market share to countries exporting low price machinery. Consequently, it would be important for high quality machinery suppliers to widen their portfolio containing a lower priced machine that still meets all basic quality requirements.

 

Sonja Mattfeld was allowed to moderate the panel on FOOD SECURITY & AGRO-TECHNOLOGY on November, 28th, in Munich

After africon’s successful participation in the first German Africa Business Forum in March 2017 we had the opportunity to participate also in the second edition in Munich on 28th November 2017. Interesting and lively discussions were held with participants from African business and governments. It was an honor that Sonja Mattfeld was allowed to moderated the panel on FOOD SECURITY & AGRO-TECHNOLOGY with a focus on the question how Germany’s enterprises can contribute throughout the value chain in order to minimize food waste. The mango-project initiated by africon and the SAVE FOOD initiative served here as a sample business case.

Find out more about the panel here.

Find out more about the Mango project here.

Slide of the month August – Plastic Pipes

 

During a period of 3 years africon GmbH conducted more than 140 interviews with manufacturers of plastic pipes as well as distributors, hardware stores, construction companies and contractors in 11 countries in west and east Africa. Through all these interviews africon gathered extensive knowledge on the local manufacturing market of plastic pipes, the importation as well as the trends of different materials in different countries.

The following slide shows very well that when entering the African market a company needs a clear strategy for different regions of the continent since trends, developments and market sizes can differ quite a lot between the different regions of this vast continent.

Slide of the month August – Plastic Pipes

During a period of 3 years africon GmbH conducted more than 140 interviews with manufacturers of plastic pipes as well as distributors, hardware stores, construction companies and contractors in 11 countries in west and east Africa. Through all these interviews africon gathered extensive knowledge on the local manufacturing market of plastic pipes, the importation as well as the trends of different materials in different countries.

The following slide shows very well that when entering the African market a company needs a clear strategy for different regions of the continent since trends, developments and market sizes can differ quite a lot between the different regions of this vast continent.

 

Slide of the month June – Automotive Kenya vs. Nigeria

In two different projects, both concerning the automotive industry in Kenya and Nigeria, africon has been conducting more than 65 interviews with vehicle assemblers, coach builders, repair garages and distributors of vehicles. Aim was to understand the current maintenance of windscreens in Africa to develop a go-to market strategy for a leading adhesives company.

These interviews as well as the analysis of general market data shows that the size of the automotive market in Kenya and Nigeria is quite different, which comes naturally when looking at the size of the population (46,05 million in Kenya vs. 182,2 million in Nigeria). But the proportion of new vs. second hand vehicles is very much the same.

Having 75% and 80% of second hand vehicles cruising the streets in Kenya and Nigeria the market for spare parts as well as chemical materials needed in the repair sector – like adhesives, sealants, paints, etc – is huge.

 

Slide of the month April – Spark plug market Nigeria

Within a large independent aftermarket (IAM) project in the automotive sector for Nigeria, africon GmbH had the chance to interview more than 50 experts and found that the IAM market in Nigeria is strongly dominated by fake products. A good example is the spark plug market where fakes in 2015 were at 65% but increased to almost 80% in 2016. According to an expert in the IAM market in West Africa, Chinese suppliers have lowered the quality of fakes to meet the lower buying power of Nigerian clients. The current market leader is NGK from Japan with a strong distribution by Asahi Brands. Other brands are distributed through various players e.g. Hydrotrans but also by OEMs e.g. Bosch.

Slide of the month March – Kenyan mobile money transfers

Mobile money has become the most important money transfer system in Kenya by far, in contrast to the European continent where people mostly stay suspicious to such paying systems. africon GmbH with its long-term experience in the payment sector did a research for a leading manufacturer of chip for payment cards. In this context, the Kenyan market of banking and credit cards has been analysed and an important data base including information from more than 50 expert interviews in Nigeria and Kenya with banks, personalisation bureaus, distributors and other key organisations was constituted. Thanks to this extensive research, africon can resume that the Kenyan banking market is saturated. Investments into this sector can hardly be profitable besides banks and telcos who still buy payment cards. The Nigerian market currently shows a strong margin drop for payment chips and new technologies are being explored by banks and payment providers. Nevertheless, the dynamic development of mobile money is an important opportunity for the IT sector and internet security companies.

 

Slide of the month February – Segmentation of the Nigerian sanitary market

The slide of the month January showed that Western Africa is a very active region for hotel development. The rise of the construction sector also drives the need of interior design and sanitary products. Two third of the total Nigerian turnover in sanitary products come from retail business. Only one third of the products are sold in construction projects such as hotels or office buildings. Whereas, when it comes to high-end class, the ratio changes and project business dominates the selling of sanitary and interior decor. Key to success in Nigeria is the identification of key players.

The segmentation of the Nigerian market illustrated by the sanitary sector is typical for Africa. Small distributors and unofficial markets dominate. Still, africon sees an opportunity for large contracts in high-end projects. A successful market entry must cover the whole distribution chain.

 

Slide of the month January – Development of hotels in Africa

Some African countries are known for its dynamic tourism such as Kenya and Tanzania, Namibia, Botswana and South Africa. Idyllic pictures of Safari-tourists can be drawn out of this imagination. However, the hotel industry that is also linked to business travelling is the most prospering in Western Africa. The first slide of the month in 2017 indicates that 45% of the African new hotel rooms were built in Western Africa. Also, in Nigeria more than 10.000 hotel rooms were planned in 2016, that is more than in any other African country. Angola and Kenya also show an interesting number of 3.000 to 8.000 rooms planned in 2016.

Thus, africon sees interesting potentials in the construction and interior furnishing sector. German companies can profit from the African construction boom as much in providing services as in selling sanitary equipment, furniture and floor covering.

 

African hotel development

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