Slide of the month April - Motorcycles in Operation in Egypt

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The African automotive markets are meanwhile one of africon´s absolute strongholds. The company has won and executed projects in the areas of e.g. assembly machinery, engine filters, ignition products and general spare parts in countries ranging from Nigeria in the West, Kenya and Tanazania in the East, Egypt in the North and South Africa in the South. Insights gathered cover areas such as vehicles in operation, spare parts markets, local vehicle assembly projects and key distribution firms. They also include companies ranging from major automotive OEMs such as Toyota, Isuzu, Hyundai and VW, to aftermarket players like BOSCH, Denso, NGK, Hengst, MANN-FILTER, Mahle and others.

Automotive

Motorcycles in operation - Egypt
In 2017, approx. 4.3m motorcycles and tuk-tuks were
operational on the streets of Egypt.
16/05/2019 © africon GmbH 2018 1
1.51 1.67 1.77
2.14
2.62
2.93
3.34
1.00
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
2011 2012 2013 2014 2015 2016 2017*
Millions
Source:AMIC,CEIC(2018),partsdistributorinterviews(2018)
4.3m Tuk-tuks & Motorcycles
Number of licensed motorcycles
(Units: 2011-2017)
Motorcycles
60%
Tuktuks
30%
Scooters
5%
Racing
5%
Split into segments
(estimate, 2018)
Tuktuks are not
licensed, therefore
precise data is missing
Segment Brands (selected)
Motorcycles 60% CN (e.g. Dayun), 30% Indian (TVS,
Boxer), 10% others (Suzuki, Binelli)
Tuktuk Bajaj, Diamond & others
Scooters SYM, Binelli & others
Racing Boliver (Suzuki), Harley Davidson

africon conducted a market analysis on the automotive industry with specific interest in the automotive parts market in sub-Saharan Africa. Our focus was further narrowed down to the aggregate value of three main automotive service parts which are: Filters (consisting of air filters for internal combustion engines, as well as Oil or petrol filters for internal combustion engines), Spark plugs, and Brake parts. The total combined import value of these automotive parts in Sub-Saharan Africa was $753 million in year 2017. Brake parts recorded the highest import value worth $388 million which is 52% of the total import value of the three selected automotive parts combined, while spark plugs were the least of the imports valued at $58 million. Based on our analysis of the available data on automotive parts imports in Sub-Saharan Africa, we found that South Africa, Nigeria, Angola, Kenya, and Ghana were the top five importers of filters, spark plugs and brake plugs into Sub-Saharan Africa in the year 2017. South Africa being the largest market, accounted for 47% of these automotive parts imports worth $355 million, while Ghana being the fifth largest market was worth $21 million. The major export partners were China, Germany, South Africa, Belgium and USA. However, the data from year 2007 shows that Germany was the largest exporter of these automotive parts to the Sub-Saharan Africa region until 2013 when China took over as the largest exporter to the region. Brake parts were also the largest exports (of the three parts) from China and Germany while Filters were the largest exports from South Africa, Belgium and USA

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Slide of the month May- Glass production in Africa

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Glass has innumerable applications like building, construction and packaging among others. africon did an analysis for a chemicals manufacturer to understand glass production in Africa, by looking at 5 major countries involved in the process. These were Kenya, Nigeria, Tunisia, Egypt and Morocco. Egypt clearly emerged as the leading country in glass manufacturing, followed by Morocco and Tunisia. Based on the findings, africon was able to have a scope on glass production as an application industry for our client and give strategic recommendations.

Slide of the month April- The sugar industry in East Africa

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Agri processing is often referred to as one of the most promising areas for many African countries to develop their economies. In this project, africon was tasked to prioritise countries and sectors to (in a next stage) efficiently identify potential customers for a client. The sugar industry, as one of the evaluated industries, scored a “medium” potential for our client – though the image varies across the region. While many East African countries have sugar producing industries, only Ethiopia has over the recent years registered significant growth in sugar output and might continue to do so over the next 2-3 years. On the other hand, many sugar mills in the region suffer from high production costs and dwindling or stagnating output. Through the results and the continuation of this project, we will not only identify the most promising first customers for our client in East Africa, but we will also provide direction for future sales efforts in the region.

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Slide of the month January- Internet speeds across africa

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For an increasingly digital world, fast internet is a key driver of growth. As anywhere else, internet speeds in Africa vary greatly between countries as this slide shows: while for example Madagascar has a download speed of around 32 Mb/s, faster than that of the UK, and countries like Ghana and South Africa have speeds of above 20 Mb/s, others still lag behind. In the project this slide stems from, a client of africon and digital services company was looking for potential future sourcing locations in Africa. africon analysed indicators such as the above to prioritize countries according to their sourcing potential for the client. Though internet speed was an important determinant, a critical factor was to also consider further KPIs, such as the cost and availability of other means of production. An analysis of a mix of various critical indicators finally led to an East African country being ranked as number one. The next target is now to jointly establish a local presence in this country for the client.

Slide of the month December- Automotive market in uganda

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The automotive aftermarket is one of the key sectors of opportunities in Africa – not just for Germany, but for many global automotive nations as well. However, many international automotive firms face challenges when doing business in Africa as markets function differently compared to other parts of the world – and within Africa itself. The typical route to market is one example: while consumers in markets like Nigeria tend to buy parts from retailers, consumers in some East African countries – like Uganda here – tend to go for the more convenient option of buying from workshops directly. This changes dynamics in decision making, of which automotive suppliers need to be aware to efficiently position their brands in the market.

Slide of the month November- Chemicals application sectors in Nigeria

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Africa‘s chemical industries have experienced enormous growth over the past decades. Though at a smaller scale, various markets in Africa offer substantial market opportunities for global chemical companies. One of them is our client for this project. Taking a certain set of chemicals in our client‘s portfolio, the project objective was to identify the most interesting countries on the continent, as well as the key application industries and important potential customers. After a targeted industry analysis across various countries, africon was able to provide a detailed market sizing and competitive analysis, leading to a comprehensive prioritization of countries and industries, along with recommended routes to market. Despite being hampered by its recent recession, the Nigerian market partially shown here emerged as an important country on the list, even though countries like Egypt and Kenya currently rank partially significantly higher than “Africa‘s giant“.

Slide of the month October- South Africa´s construction sector

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Slide of the month March. Kenya's construction and real estate sector

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africon GmbH was contracted by one of our clients and we successfully conducted a research on the aluminium industry in Kenya. We found out that the key drivers of this industry are the construction and real estate sectors in Kenya. Findings revealed that these sectors have experienced positive growth rates within the last five years and are expected to expand even further. Kenya’s construction sector expanded by 8.6% and contributed approximately 6% to the country’s GDP in 2017. It is also one of the major sectors attracting foreign investors to the country. According to Deloitte’s construction trends report, Kenya has remained the leading country with the highest number of projects in East Africa for four consecutive years, with projects increasing by 78% from 23 projects in 2017 to 41 projects worth $38.2 billion in 2018. The major construction projects are in real estate, energy and power, and transport, sources also reveal that the Kenyan government is spending billions of dollars on transport projects as Kenya is expected to become the logistics hub of East Africa. Challenges to this Kenya’s construction sector include: the frequent use of substandard materials, long procurement procedures, low project completion rates, and low technological knowledge. Despite these apparent challenges, continuous growth is expected in the sector as the Kenyan government plans to build 500,000 houses by 2022, and also to reduce corporate tax for developers who construct at least 400 units per year. Kenya’s real estate sector is the 6th largest contributor to Kenya’s GDP, and was valued at $5.5 billion in 2017. The sector expanded by 6.1% in 2017 compared to 8.8% in 2016, and this slowed growth rate is due to the elections and reduced credit supply (as a result of capped interest rates). The construction of new private residential buildings in Nairobi increased from 9,054 in 2015 to 10,002 in 2016, while new public residential buildings rose from 45 in 2015 to 1,062 in 2016. Some of the challenges faced by Kenya’s real estate sector include inadequate sources of funding, high land costs, and infrastructure development costs. However, government initiatives such as digitization of the land ministry, removal of land search fees, and inclusion of affordable housing as part of Kenya’s big four agenda is likely to boost real estate development over the next few years.

Slide of the month Januar - The automotive parts market in Nigeria

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The Nigerian automotive industry appears to be an interesting market, as our research on the automotive parts market shows that the market size is worth USD 4.4bn or more. The total vehicles in operation in Nigeria is currently estimated at 12.7 million, and Nigerian drivers spend an average of USD 350 on automotive parts per year. Interviews conducted with various automotive experts in Nigeria also confirmed that the market for service parts accounts for the biggest share of the automotive market.

Slide of the month December - Aluminium market growth in sub-Sahran Africa

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africon recently conducted aluminium market research in Africa and this revealed that the Aluminium market in sub-Saharan Africa has been experiencing a steady growth in the past decade. The major contribution to this, is the increased import of hollow profiles of aluminium alloys into Sub-Saharan Africa which has grown by 467%, from 23 mn tonnes to 107 mn tonnes between 2008 and 2017, compared to other profiles. The non-alloyed profiles which has the lowest contribution seems to be dwindling in import size, as they only increased between 2009 and 2012, after which they began to decline.

Slide of the month October - Trade fairs in East Africa

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As official representative of Messe Dusseldorf in East Africa we are today taking a closer look at the trade fair market in East Africa. Especially, Kenya has developed as hub for exhibitions and conferences during the past years and serves as gateway to a vital region. But also the neighbouring country are hosting various types of trade fairs from small niche events with less than 100 visitors to big exhibitions with thousands of visitors. Please do not hesitate to contact us for any details about the trade fair market in East Africa and of course the engagement of Messe Düsseldorf in the region!

Slide of the month September - Fish Waste in Ghana

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For this slide of the month our West Africa team has done in-depth research on the fish sector in Ghana. The value chain analysis shows that despite partly very modern and efficient fish production there is still a huge food loss during processing, packaging and logistics. This challenge means also a great potential for investments to reduce food waste where africon together with the SAVE FOOD initiative are strongly committed. Please do not hesitate to contact us directly for any further information on this opportunity!

Slide of the month August - East Africa BOPP Demand

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This slide of the month tries to shed some light on the BOPP market in East Africa. BOPP demand has been growing at a remarkable pace of over the past decade driven mainly by the booming food industry, rapid urbanization and modernization of retail channels. BOPP use more than doubled from 2010 to 2016 and is expected to maintain the trend and double again onto 2022. Kenya is the biggest BOPP market dwarfing all the other East African countries. This can be attributed to its more mature manufacturing sector and the higher penetration of modern retail channels that drive the demand for sophisticated packaging.

Slide of the month June - Key capabilities of German firms in Nigeria

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This slide shows the result of a recent study of one of africon´s employees. Aim was to identify firm capabilities, that have an impact on various aspects of performance of German companies operating in Nigeria. The study was based on existing research findings, as well as a survey of senior staff of 40 German firms operating in the country with at least with an appointed distributor (or own staff etc.). As only very few German firms are invested in large own local structures, it emerged that especially the marketing capability in terms of brand building, gathering market intelligence and strong sales channels are key for success locally. Efforts by the German firms can be supported by strong partners – leaving all the work to these partners is however not enough. Interestingly, factors such as adapting products to local needs, lobbying the German or Nigerian government, as well as attending Nigeria focused trade shows did not have a significant impact.

Slide of the month May - Renewable Energy in Sub-Saharan Africa

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The African continent offers an ideal environment for electricity generation from renewable sources. Therefore, it is not surprising that sub-Saharan Africa (SSA) already ranks third worldwide in terms of percentage of electricity generated through renewable sources. Roughly 27% of electricity generated in 2015 was generated through renewable sources. Lesotho, Ethiopia, D.R. Congo, Central African Republic, Namibia, Zambia, Uganda and Malawi rank best, as they generate more than 90% of their total electricity output from renewable sources. However, as of 2015, 91% of the renewable energy generated in SSA was generated from hydropower. The continent’s abundant solar, wind, biomass and geothermal resources are yet to be exploited more efficiently. The Africa Renewable Energy Initiative (AREI), established in 2015 and operating under the mandate of the African Union, aims to add 310 gigawatt of additional renewable energy generation capacity to the continent until 2030. This brings also other sources of renewable energy than water into focus and creates high opportunities for international technology and service providers in the renewable energy sector.

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The document shows clear chances in Africa for German companies and makes recommendation for a market entry. africon is a consulting company with sole focus on Sub-Saharan Africa 300 Top-Level Contacts 20 Years Experience 3 Locally-Based Offices 50+ Local projects in Africa africon GmbH is an independent consulting company with sole focus on sub-Saharan Africa and has identified the chances during various projects locally in Africa.

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AadiShakti Projects ( Asp Cranes ) Raipur

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一比一原版(AIS毕业证)奥克兰商学院毕业证成绩单如何办理

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Slide of the month April - Motorcycles in Operation in Egypt

1. Motorcycles in operation - Egypt In 2017, approx. 4.3m motorcycles and tuk-tuks were operational on the streets of Egypt. 16/05/2019 © africon GmbH 2018 1 1.51 1.67 1.77 2.14 2.62 2.93 3.34 1.00 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 2011 2012 2013 2014 2015 2016 2017* Millions Source:AMIC,CEIC(2018),partsdistributorinterviews(2018) 4.3m Tuk-tuks & Motorcycles Number of licensed motorcycles (Units: 2011-2017) Motorcycles 60% Tuktuks 30% Scooters 5% Racing 5% Split into segments (estimate, 2018) Tuktuks are not licensed, therefore precise data is missing Segment Brands (selected) Motorcycles 60% CN (e.g. Dayun), 30% Indian (TVS, Boxer), 10% others (Suzuki, Binelli) Tuktuk Bajaj, Diamond & others Scooters SYM, Binelli & others Racing Boliver (Suzuki), Harley Davidson

Editor's Notes

The African automotive markets are meanwhile one of africon´s absolute strongholds. The company has won and executed projects in the areas of e.g. assembly machinery, engine filters, ignition products and general spare parts in countries ranging from Nigeria in the West, Kenya and Tanazania in the East, Egypt in the North and South Africa in the South. Insights gathered cover areas such as vehicles in operation, spare parts markets, local vehicle assembly projects and key distribution firms. They also include companies ranging from major automotive OEMs such as Toyota, Isuzu, Hyundai and VW, to aftermarket players like BOSCH, Denso, NGK, Hengst, MANN-FILTER, Mahle and others. The automotive Märkte Afrikas sind mittlerweile eine der absoluten Stärken von africon. Über die vergangenen Jahre hat das Unternehmen Projekte umgesetzt in Produktgruppen von Montageanlagen, Motorenfilter, Zündkerzen bis hin zu Ersatzteilen im Allgemeinen. Geografsich wurden dabei Märkte des gesamten Kontinents analysiert: von Nigeria im Westen, Kenia und Tansania im Osten, Ägypten im Norden und Südafrika im Süden – und viele mehr. Erkenntnisse gab es dabei u.a. bezüglich lokaler Aktivitäten von Unternehmen wie BOSCH, Denso, NGK, Hengst, MANN-FILTER, Mahle und anderen.

Slide of the month April - Motorcycles in Operation in Egypt

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