Africa
increasing investment in the road sector
and the upgrading of infrastructure and
housing demand.
However, Weissenberg said despite
the positive growth figures, Kenya’s construction chemicals market faces several
constraints such as lack of acceptance
among end-users, lack of transport and
power infrastructure and the exchange
rate fluctuations that adds pressure to
distributor profits.
He estimated that Kenya’s tile adhesives would grow to 10,957 tons by
2017 up from the 5,800 tons realized in
2011. The country’s Tile & Carpet Centre
has the largest share of the Kenya’s adhesives market distribution ahead of Saj
Ceramics with 22 percent. Other players in the market include Rhino Special
Products, Nairobi Garment and Ideal
Ceramic which have an estimated distribution market share of 20 percent, 17
percent and 15 percent respectively.
In the grout distribution market,
Nairobi Garment has the largest share
by volume at 43 percent while Ideal
Ceramics has 22 percent with Tile &
Carpet Centre and Saj Ceramics having
11 percent each.
“The adhesives market is growing
faster than GDP fuelled by extensive pri-
vate and government spending on infra-
structure,” said Weissenberg.
By 2013, Kenya’s construction and
building sector was the country’s top
industrial adhesive end user by revenue
at 70 percent of the total market value
ahead of packaging and paper convert-
ing and automotive at 11 percent and 5
percent respectively. Other end users had
combined revenue of 14 percent.
According to Weissenberg, the total
revenue for Kenya’s industrial adhesives
is likely to grow to $13.5 million in 2018
from $9.2 million in 2014 driven mainly
by “brand awareness, strong distribution
network, continuous supply of products
and competitive pricing.”
Weissenberg told the Congress partici-
pants that in Nigeria “the supply of tile
adhesives represents the greatest market
opportunity in the country’s tile installa-
tion products market.”
The country’s adhesives segment is
likely to grow from 21,280 tons in 2012
to 35,599 tons by 2017.
Construction companies in Nigeria
have the highest market share of adhesives
at 46 percent according to Weissenberg.
The country’s informal and semi-formal
market has 37 percent with tillers and
contractors taking up 17 percent.
Weissenberg sees tile adhesives rep-
resenting the “greatest opportunity
in Nigerian tile installation products
market.”
The presentation by Weissenberg at
the EACC reinforced a growing indication that the potential for the growth of
Africa’s paints and coatings is huge and is
yet to be fully exploited by both local and
international investors probably because
of the restraints outlined during the discussion and more specifically inadequate
power and transport infrastructure. CW
