Africa
and that only Kenya has continued on a
growth trajectory, the four economies are
nevertheless implementing some of the
largest infrastructure projects in the continent, hence opening more opportunities
for protective concrete coatings solutions.
Elsewhere, global market research and
consulting firm 6Wresearch, said in its
latest report the number of dry and wet
mix concrete making plants in Africa is
set to increase to $35.6 million in coming years driven mainly by the expanding
construction industry.
“In Africa, concrete batching plants
with medium capacity accounted for majority of the market volume share due to
increased construction activities and wide
usage across various infrastructural projects,” said 6Wresearch.
Production of protective concrete
coatings for applications such as architectural structures, road sealing, parking,
decorative flooring and also primers are
expected to meet demands of the expanding infrastructure development.
“Medium capacity concrete batching
plant market is expected to maintain its
market dominance throughout the forecast period in-terms of market volumes,”
added the report.
Even in rural Africa where infrastructure projects are limited both in size and
value, the report said there is likely to be
low capacity use of batching plant and
which will contribute to the overall continental growth.
“Amongst all the verticals, the infrastructure vertical accounts for key share
in the overall Africa batching plant market. Buildings are the other key revenue
contributing vertical,” it said.
The demand for manufacture and supply of traffic deck coatings, which make it
possible for transport infrastructure such
as roads to withstand demand of vehicular traffic and adverse atmospheric conditions, is likely to grow because of the
increasing public and private investment
in the Africa’s transport sector.
In East Africa, where Deloitte estimated 43 projects worth $27.4 billion to be
underway, the transport sector tops the
list of economic segments with the largest
investment commitments from both the
public and private sector.
“The transport sector accounts for the
greatest share of projects, with 15 road
and bridges projects currently underway,”
Deloitte said in its November 2016 report.
A similar trend prevails in Southern
Africa where “transport projects record-
ed the third largest share (of the region’s
total projects) at 20 percent.”
In Central Africa the report said:
“Transport projects dominate the con-
struction sector in Central Africa with
41. 7 percent of projects.”
Nigeria, which has the largest infra-
structure development projects underway
in West Africa valued at $72.9 billion,
“has embarked on a number of large
transport projects with road and bridge
totaling $8 billion,” according to Deloitte.
Consumption of architectural wall
and decorative floor coatings segments
are also set to post positive growth to coincide with the anticipated expansion of
Africa’s real estate market.
Analysts see a bright future for Africa’s
real estate sector driven mainly by the
fast-growing young population in the
region, an expanding industrialization
sector, which is fueling growth in retail
sector and the high urbanization rate that
is expected to reach 56 percent by 2050.
London-based independent real estate
consultancy firm Knight Frank recently said:
“A growing volume of capital is targeted at
Sub-Saharan Africa real estate investment
and development, with a series of new investment vehicles being launched in recent years.”
“The retail property sector continues
to be a major focus for development activity, causing the shopping mall concept
to take root in an increasingly wide range
of Sub-Saharan cities,” said the agency.
The agency said Kenya’s capital,
Nairobi “has been a retail development
hotspot over the last two years, highlight-
ed by the opening of the Two Rivers Mall,
Garden City Mall and The Hub Karen.”
In April, market analyst Frost & Sullivan
predicted a 6. 7 percent market growth for
decorative paints and coatings in Kenya
and Tanzania “driven by urban migra-
tion, supportive government policies, and
a movement towards cleaner technology.”
“The markets will also benefit from
the high urban migration projected in the
two countries, which will increase the
demand for residential and commercial
buildings and; subsequently, for decora-
tive paints and coatings,” the analyst said.
According to Ashley Arumero, Frost
& Sullivan Visionary Science Research
Analyst: “The Kenyan market outpaced
the Tanzanian market in 2015, primarily
due to its more suitably established manufacturing industry and development of
ports to facilitate raw material imports.”
Arumero said the lower maturity
of the paint manufacturing industry in
Tanzania “has eased the entry barriers for
potential participants.”
Global protective concrete coatings
maker Sika Corporation in June 2017
announced the opening of a concrete
admixtures factory in Tanzania to meet
the increasing demand for the product in
East Africa’s second largest economy and
becoming the first company to manufacture the products in the country.
“Plans are already being made to add
a mortar products manufacturing line,”
the company said in a statement.
Sika said its objective is to establish a
supply chain for the Tanzanian market as
it positions itself to “benefit from planned
investments in infrastructure.”
Paul Schuler, regional manager EMEA
and designated CEO said the plant lo-
cated in Tanzanian capital Dar es Salaam
comes at a time when the country, with
an estimated 50 million people, is experi-
encing growth on infrastructure develop-
ment and the company “intends to supply
our products to these projects.”
In South Africa, where Sika is one of
the major construction chemical manu-
facturers, Frost & Sullivan previously
said: “The demand for concrete protec-
tion products is growing faster than the
supply of the products in South Africa.”
It said the largest application area will
remain the infrastructural segment with
BASF, Stoncor and Mapei topping the list
of manufacturers and suppliers of protec-
tive concrete coatings.
An increase in infrastructure development especially of the transport sector
and residential and commercial buildings
driven mainly be the anticipated surge of
the region’s economic growth promises to
open up the huge market opportunities for
Africa’s concrete coatings products. CW
