Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market


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Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

  1. 1. Sub-Saharan Africa Industrial Automation and Process Control (IPC) Key Growth Trends To Watch ‘What the future holds for IPC suppliers within the African market Sub-Saharan Africa
  2. 2. 2 Key Perspectives On Growth Of Sub-Saharan Africa’s (SSA) Industrial Automation And Process Control (IPC) Markets 2 Escalating operating costs (labour, materials and energy) are pushing regional process industry companies to increase their IPC spends 3 Expansion of the sub-region’s mining and metals, power generation, food, beverage manufacture has also contributed to strong IPC product demand growth 4 Most of the sub-region’s process industries are investing in the replacement of energy inefficient motors, drives, pumps, valves, actuators with more efficient systems 5 Automation systems are being purchased and periodically upgraded to ensure that regional suppliers are as competitive as lower priced Asian imports 1 Sub-Saharan African (SSA) demand is trending upwards driven by regional process industry companies investing in becoming more efficient Source: Frost & Sullivan analysis.
  3. 3. 3 Major Factors Impacting The Supply And Demand Of IPC Products Within Sub-Saharan Africa ` Shortage of engineering skills Postponement and cancellations of planned capital projects due to fund limitations Consolidation in key end-user segments Limited end-user awareness on the benefits of installing IPC technologies An influx of lower-priced, Asian imported, IPC products Increased end-user commoditisation of supplied IPC products Declining customer loyalty Narrowing profit margins Exchange rate volatility Political instability Despite these challenges, investment in the development and expansion of Africa’s manufacturing sector presents lucrative opportunities for IPC suppliers
  4. 4. 4 ` Key End-User Industries Of IPC Products Between 2012 And 2020 Over Over Over Over Chemicals & Petrochemicals (C&P) including Oil & Gas (O&G) Expansion of current refining capacity Development of upstream and downstream oil & gas and chemicals industries Over Metals, Minerals & Mining (MMM) Expansion of the sub- continent’s energy, base and precious mining sectors Beneficiation of mineral commodities in Southern Africa Over Power Generation (PG) New power plant constructions of coal fired, gas fired, wind- powered and hydro-electric power stations Water & Wastewater (WWW) Investment in new facilities to match industrial sector growth and urbanisation within Sub- Saharan Africa (SSA) Food & Beverages (F&B) The agricultural revolution will spur the investment in new, high-production and cost efficient food and beverage processing plants Pulp & Paper (P&P) Investment in processing plants that diversify existing pulp and paper product portfolio
  5. 5. 5 Southern Africa Will Account For The Bulk Of Africa’s IPC Purchases ` Key sectors: Oil & gas; chemicals & petrochemicals and water & wastewater industries North Africa IPC Demand Share: 20 %– 25% Key sectors: Oil & gas; metals, minerals & mining and power generation industries East Africa IPC Demand Share: 10% – 15% Key sectors: Metals, minerals & mining; chemicals & petrochemicals; power generation and food & beverages industries Southern Africa IPC Demand Share: 35% – 40% Key sectors: Oil & gas and metals, minerals & mining industries Central Africa IPC Demand Share: 10% – 15% Key sectors: Oil & gas; metals, minerals & mining and power generation industries West Africa IPC Demand Share: 15% - 20%
  6. 6. 6 Over 200 Capital Expansion Projects Are Planned For Africa’s Metals, Minerals And Mining Sector ` 200 capital expansion projects planned for Sub-Saharan Africa Projects Value: >US$ 150.00 billion Project Types: New mine openings, expansion of infrastructure and beneficiation Key sub-industries: Coal, platinum, copper, iron ore and gold Key sub-regions: Southern, Central and West Africa ` Metals, Minerals & Mining (MMM) IPC Demand CAGR (2012 – 2020): 7% - 10% Project Types: Exploration, new production facilities, expansion of refining capacity, developing upstream and downstream sector Key sub-industries: Oil, gas, chemicals, petrochemicals, ethanol & biofuels Key sub-regions: Ghana, Kenya, Nigeria, Namibia, Mozambique, Uganda Chemicals & Petrochemicals (C&P) IPC Demand CAGR (2012 – 2020): 6% – 9%
  7. 7. 7 Governments Within Sub-Saharan Africa Have All Committed To Plugging The Energy Gap To Boost Regional Economic Growth ` ` Project Types: New power plant construction, expansion and upgrades of existing facilities Key sub-industries: Coal fired power plants, gas fired power plants, hydroelectric power plants & renewable electricity generation Key sub-regions: South Africa, Zambia, Zimbabwe, Tanzania, Nigeria, Ghana, Botswana & Ethiopia Power Generation (P&G) IPC Demand CAGR (2012 – 2020): 8% - 11% Projects Value: US $0.9 – $1.2 billion on capital equipment Project Types: Infrastructure for manufacturing, mining and urban settlement infrastructure Key sub-industries: Mining, metals processing, manufacturing & urban settlements Key sub-regions: Ghana, Kenya, Nigeria, Namibia, Mozambique, Uganda Water & Wastewater (WWW) IPC Demand CAGR (2012 – 2020): 4% - 6%
  8. 8. 8 The Food And Beverages Processing Sector Is Poised For Strong Growth Driven By The Rapid Urbanisation Rates Within Sub-Saharan Africa ` ` Project Types: Agro-processing, food and beverages processing sector expansion, upgrades of existing infrastructure Key sub-industries: Cereals, dairy, wine, meat, fish & poultry Key sub-regions: South Africa, Zimbabwe, Egypt, Nigeria & Ivory Coasts Food & Beverages (F&B) IPC Demand CAGR (2012 – 2020): 3% - 5% Project Types: Diversifying product portfolio and expanding production output of chemical cellulose pulp Key sub-industries: Chemical cellulose pulp, packaging, disposable diapers and paper towels Key sub-regions: South Africa, Swaziland, Lesotho and Zimbabwe Pulp & Paper (P&P) IPC Demand CAGR (2012 – 2020): 2% - 4%
  9. 9. 9 Relationship Building Within Key Industrial Sectors And Countries Is A Strategy That Most IPC Suppliers Should Adopt To Sustain Revenue Growth ` MMM PG C&P F&B WWW P&P MMM PG F&B P&P MMM PG C&P F&B WWW C&P PG F&B P&P C&P PG F&B P&P MMM C&P WWW MMM PG WWW C&P MMM PG WWW MMM PG WWW MMM C&P WWW PG WWW MMM C&P MMM MMM F&B C&P F&B C&P C&P C&P C&P C&P C&P C&P MMM C&P KEY MMM: Metals, minerals & Mining C&P: Chemicals & Petrochemicals incl. O&G PG: Power Generation WWW: Water & wastewater F&B: Food & Beverages P&P: Pulp & Paper COUNTRY ATTRACTIVENESS KEY INDUSTRIAL SECTORS LOW 1 MEDIUM 2 – 3 HIGH 4 & above TOP 5 COUNTRIES IN TERMS OF KEY IPC END-USER SEGMENTS South Africa Zimbabwe Mozambique Nigeria Ghana MMM 10 Countries C&P (incl O&G) 19 Countries PG 9 Countries WWW 9 Countries F&B 7 Countries P&P 3 Countries
  10. 10. 10 2013 RESEARCH Automation & Control Solutions (ACS) 1) ACS Market in Sub-Saharan Africa's Water & Wastewater Sector: an analysis of the top 3 countries 2) ACS Market in Sub-Saharan Africa's Mining Sector: an analysis of the top 3 countries 3) ACS in Sub-Saharan Africa's Food & Beverage Sectors: an analysis of the top 3 countries 4) ACS Market in Sub-Saharan Africa's Power Sector: an analysis of the top 3 countries 5) Total Sub Saharan African Automation & Controls Markets: Annual Update 2013 (available Q4) Motors 1) Strategic Analysis of South African Electric Motors Market (available Q3) Pumps 1) Southern Africa's Industrial Pumps Market ( available Q3) Regional Analysis Country Analysis Product Market Analysis Vertical Market Analysis Competitive Analysis Pricing Analysis SSA IPC MARKET RESEARCH FOCUS AREAS Does This Look Interesting? There’s More…
  11. 11. 11 Contact Us James Fungai Maposa Programme Manager – Industrial Automation, Mining & Manufacturing + 27 (0) 21 680 3203 Guillaume de Bassompierre Director of Business Development – Africa + 27 (0) 21 680 3582 + 27 (0) 71 684 0011