level of infrastructure investment and for-
eign direct investment related imports.”
According to the Fund, “Investments
in infrastructure and mining will continue
to add to the domestic demand for goods
and services, even if demand related to
the public sector slows as several coun-
tries move toward fiscal consolidation.”
This anticipated growth in new infra-
structure development and hopes of the
growth creating increased demand for
polyester coatings is in line with the lat-
est analysts’ predictions for the coatings
industry in 2014 and 2015.
For example, in Eastern Africa the
countries of Kenya, Tanzania, Uganda
and Rwanda have announced increased
national budgets for new infrastructure
projects, and the region is one of those
expected to experience growth in demand
for the polyester coatings solutions.
Consulting firm Deloitte said: “The
East African countries are expected to roll
out their ambitious infrastructure develop-
ment plans in 2014.”
Kenya’s $2 billion Eurobond floated
in June in two portions of a five-year
$500 million bond and a 10-year $1.5
billion bond, and which the government
said was oversubscribed by 400 percent
after attracting $8 billion worth of bids,
will ensure many of the infrastructure
projects either planned or are under con-
struction, are completed.
In Tanzania, Deloitte said the government “continues to push forward with its
improvement in infrastructure being a priority discussion in any governmental debate.”
For example, in the 2013/2014 fiscal
year, the government allocated $1.2 billion
worth of investment on roads, railways
and gas pipeline constructions including
the gas pipeline from Mtwara to Dar es
Salaam has been the most sought after
investment as the pressure of stabilizing
power generation continues to surge.
Landlocked Uganda has also given
priority to infrastructure development
“due to the central role it plays.”
“With increased focus on integration
within the East African Community, it is
expected that a considerable amount of rev-
enue will be allocated to the transport and
roads sector as well as the railway in order to
facilitate a smooth transition,” said Deloitte.
Spending more on the building and
construction industry by African governments is expected to enhance the region’s
economy resulting in rising disposable
income of the middle class, who together
with an anticipated population increase
creates a perfect environment for the
growth in demand for polyester coatings.
According to TMR: “Owing to rising
income in developing countries people
are going for second home plans as in-
vestment options that is driving the con-
struction industry.”
Some of the leading international
coatings manufacturers have expressed
interest in taking advantage of the in-
frastructure construction boom to
expand their foothold in the African
coatings market.
For example, Munich-based chemical
firm Wacker Chemie (WACKER) says it
will this year “accelerate its business de-
velopment in the Africa continent espe-
cially in the sub-Saharan region.”
“We have developed tailor-made solu-
tions for polymer-modified tile adhesive
formulations taking into account local
climatic conditions and materials,” said
Cyril Cisinki, managing director Wacker
Chemicals Middle East in early July
when the company participated in the
West Africa Building and Construction
Exhibition held in Accra, Ghana.
The chemicals firm concurs with TMR
predications that countries across the
globe are in the throes of an infrastructure boom and which it hopes to bet on
to grow its sales volumes and profits in
2014 through 2015.
“The construction industry is booming. Globally, it is set to grow by over
70 percent to $15 trillion annually by
2025. As the number of construction
projects rises, so, too, does the demand
for advanced, high-quality construction
chemicals – first and foremost dispersible
polymer powders as binders for dry-mix
mortars,” the company said in its 2014
second-quarter financial report.
The chemical firm, which sold more
than 200,000 metric tons of dispers-
ible polymer powders in 2013, says
“demand for dispersible polymer
powders is growing so fast worldwide
that WACKER has been successively
increasing capacities at all three of its
production sites since last year.”
“Rising volumes, better prices for
polysilicon and good coverage of fixed
costs through high overall utilization of
production facilities all had a positive
impact on earnings in the reporting quar-
ter,” the company said. The prospects
could not look any better if the TMR pre-
dictions come to pass.
In West Africa, WACKER is targeting
the market segment for dispersions for
water proofing membranes and interior
paints, water-repellent silicone resins for
masonry coatings and silicone sealants
for general and sanitary purposes.
According to Cisinki, WACKER
aims “to transform the dry-mix mortar
market in Ghana and Western Africa,
as we believe that our products can
enhance the performance of the local
construction chemicals and add great
value to the regional construction mar-
ket, especially in the field of sustain-
able building techniques.”
According to the African Economic
Outlook for 2014, the West Africa region
“is expected to continue its rapid eco-
nomic growth in 2014 and 2015” driven
mainly by heavy investments in manufac-
turing, infrastructure development and in
the oil and gas sector.
“After some moderation in 2013,
growth is likely to accelerate to above
7 percent in 2014 and 2015,” the outlook predicted.
Meanwhile, the Africa OEM coatings market is also likely to reap from
the anticipated economic boom just
like the rest of the world according to
the TMR report.
TMR said demand for OEM coatings, which include coil coatings, paper
and paperboard coatings, powder coatings, radiation cured coatings, wood
furniture and composition board finishing, appliances coatings “is rising with
changing lifestyle and improving per
capita income across the globe. Rising
demand from special purpose such as
marine coatings, industrial maintenance,
aerosol coatings, automotive coatings,
wind energy and aerospace coatings, is
expected to boost the global polyester
coatings market growth.” CW
