Coatings World - March 2013

Africa Paint and Coatings Market Set for Growth

According to the International Monetary Fund, the near-term growth for Africa remains broadly positive, with

growth projected above five percent a year in 2012-13.

by Shem Oirere Africa Correspondent

Although the global economic scene has been undergoing turbulent moments ince the 2009 financial crisis, in Africa, projections are looking good and the paints and coatings industry is one of the economic segments that will benefit from the anticipated five percent GDP growth for 2012 through 2013.

The positive economic growth projected by the International Monetary Fund will be buttressed by increased financing for infrastructure development by governments in the region, an expansion of real estate and transport sectors both in the short and medium term.

“The near-term outlook for the region remains broadly positive, with growth projected above five percent a year in 2012–13,” said the IMF in its October 2012 release

IMF Outlook for Sub-Saharan Africa:
Maintaining Growth in an Uncertain World.
“With global commodity prices projected to
remain soft and domestic climatic conditions
improving, inflation is expected to decline to
about eight percent through end 2012, and
about seven percent through end 2013.”
Crown Paints Kenya CEO, Rakesh Rao,
told the company’s shareholders in Nairobi
recently, the high economic prospects will spur
expansion of the building construction indus-
try and ensure “demand for paints remains” in
the medium term.

However, the 2009/2010 global financial meltdown impacted the paint and coatings industry in several African countries. Some had to make do with high raw material prices, volatile world prices and depreciation of their local currencies.