The Plastic Industry in Africa
Africa is the second-largest most populated continent in the world. It covers nearly 16% of the population in the world. Africa has become an important place in the international plastics and packaging industry where plastic goods and expertise are in high demand. Africa’s plastic industry is having high growth rates as demand for plastic goods and machinery in Africa registers a solid growth.
Africa’s general economy is presently on a growth path. Many countries in Africa have experienced several years of strong economic growth and it is now plastic cutlery one of the fastest-growing markets for plastic goods and machinery in the world. A growing economy, a population of nearly 680 million and the probable for significant long-term growth have made the African continent a priority market for many international companies. A few of the areas known as opportunities for international companies include plastics production machinery (PME) as well as plastics material resins (PMR). Not to mention the high demand for plastic goods that has been growing throughout Africa. Being a world second largest populated places there is a massive demand of domestic plastic products like plastic spoon, silver-coated plastic Spoon, Kitchen spoon, plastic fork, disposable plastic spoon, nail spoon, ice-cream spoon, plastic stirrer, birthday knife, soup spoon, the medical spoon can be made by using plastic injection molding which is useful in the household as well in other sectors.
As expected, the growing African economy is spurring growth in the continent’s plastics industry.
According to industry reports, during the past many years, the use of plastics in Africa has grown by an astounding 150%, at a compound average growth rate (CAGR) of approximately 8.7 percent. Imports of plastics products into Africa have grown among 23% and 41% during this time. In a recent conference presentation, analysts forecast that the use of plastics in East Africa alone is probable to treble in the next five years. And there is potential for much more growth.
Domestic production being supplanted by imports;
Lagging behind developed countries in terms of production methods, product quality, the scale of production and product range;
The conservative attitude of manufacturers and consumers towards new materials;
Unfortunate government support (and the strong position of the metals industry);
A shortage of good infrastructure to boost manufacturing.
Fast Facts About Africa’s Plastic Market:
KENYA
Demand for consumer plastic products has been growing at an average rate of 10-20% annually. Kenya’s consumer spending has been spurred largely due to sweeping economic reforms that have led an overall economic development in many sectors and subsequently improved disposable incomes of the rising middle-class in Kenya. As a result, imports of plastic products like a plastic spoon, kitchen spoon, and resins into Kenya has been registering a steady growth in the last two years. Analysts believe that in the coming year’s demand for plastic and packaging goods and machinery will further grow as Kenya’s enterprising business community embarks on strengthening the country’s manufacturing base by importing machinery and raw materials to set up manufacturing plants in Kenya to meet the rising demand for plastic and packaging solutions in East Africa.
Kenya’s status as the regional business and distribution hub of the Sub-Saharan Africa region will further help the country to boost its growing plastics and packaging industry.
UGANDA
Being a landlocked country, Uganda imports a majority of its plastic and packaging requirements from regional and international suppliers and has emerged as a major importer of plastics in the East Africa region. Major imports include plastic moulded furniture, plastic housewares like plastic spoon, kitchen spoon, medical spoon, toothbrushes & plastics household products. Kampala, the business center of Uganda, has become a center for the packaging industry as more and more manufacturing units are being set up in and around the city to meet the rising demand for plastic goods like melamine utensils, plastic household foods, plastic bags, toothbrushes, etc.
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TANZANIA
In the East Africa region, one of the largest markets for plastics and packaging goods in Tanzania. The country has been importing plastic goods and machinery from across the world in increasing quantities over the last five years and has emerged as a lucrative market for plastic goods in the region. Tanzania’s plastic imports include plastics consumer items like plastic spoon, bio-medical products like a medical spoon, kitchenware like a kitchen spoon, and cutleries & other plastic products.
ETHIOPIA
Ethiopia has also emerged as a major importer of plastic goods and machinery in recent times. Traders and wholesalers in Ethiopia have been importing a wide variety of plastic goods and machinery including moulds for plastics, Kitchen Plastic Products like kitchen spoon, the plastic spoon used for various purposes. The sheer size of the market makes Ethiopia an attractive market in Africa for the plastics industry: Ethiopia is Africa’s tenth largest country with a population of approximately 70 million people.
Ethiopia adopted a free-market economic policy in 1992, and in line with this plastic, bottles have promoted private investment. As a result, the plastics industry in Ethiopia has been growing at a rapid pace as demand for plastic products in the local market has been registering a steady growth since 2005. Several foreign companies have been entering into joint-venture operations with Ethiopian partners to set up plastic manufacturing plants in Addis Ababa. Ethiopia has a reasonably good infrastructure by African standards and boasts of a large pool of skilled labor. The cost of labor is very low in Ethiopia with a wage of US$1 a day for unskilled labor and the average monthly salary of US$120 for a fresh graduate.
Recently, an Indian and Mauritian joint venture in Ethiopia started the production of fuel from waste plastics using new technology. The company has built a factory on 15,000 square meters in Akaki/Sebeta sub-city and the fuels, which can be produced from waste plastics, are being used for various applications including jet fuel.
The company uses Indian scientist Professor Ms. Alka Umesh Zadgaonkare’s 2003 innovation, which turns all plastic materials (PVC) into fuel within four hours of processing. From a similar weight of waste plastics, the technology enables the company to produce the same/equivalent weight of fuel which can be used for various applications. Using this technology, India is saving foreign currency of approximately US$3.3 billion every year which is used to spend for importing fuel produced from crude oil.
With the objective of replicating India’s experience in other African countries, the joint venture is also on the way of installing fuel generating plants in Ghana and Mauritius. It is also negotiating with other countries such as Tunisia.
MOZAMBIQUE
Ever since Mozambique’s plastics factories were privatized in 1995 and 1996, there has been a flurry of activity in the sector. New manufacturing plants have been mushrooming around the country to meet the demand for plastic goods for the local and regional markets. With a huge domestic market, Mozambique is indeed an attractive market for the plastics products for household and business use like a plastic spoon, kitchen spoon ice-cream spoon, a medical spoon which are useful in many sectors in domestic, restaurants as well as industrial use. Inexpensive plastic products of all kinds enjoy strong consumer demand in Mozambique and other regional markets. As a result, it has emerged as a major importer of plastics production machinery (PME) as well as plastics material resins (PMR).
SOUTH AFRICA
Undoubtedly, South Africa is one of the biggest players in the African market when it comes to the plastics and packaging sector. The South African plastics market is currently valued at approximately US$3 billion – which includes raw materials and products. South Africa accounts for 0.7% of the world market and per capita consumption of plastic is about 22 kg. Another salient feature of the South African plastics sector is that around 13 percent of original plastic is recycled annually, mostly recovered as post-consumer waste. This represents around 30% of the actual packaging polymers produced.
High demand for conversion technologies like extruder, injection molding and thermoforming. Demands for products include film, sheet, packaging material, kitchenware like a plastic spoon, kitchen spoon, furniture, pipes, footwear, and industrial parts. Being a developed country, plastics recycling and environmentally friendly plastics are considered important for the plastics industry in South Africa.
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