African plastics demand | markets report
AMI has just published its fi rst analysis of polymer demand in Africa. On the following pages, the report’s author Cristina de Santos reviews the trends for this exciting, and fast growing market
new land of opportunity
The African plastic market represents one of the least developed in the world with polymer consumption below 7 kg per capita, compared to a world average of just under 28 kg. However, it is also one of the most exciting markets for polymers in the world today. It is a vast con- tinent with a very large, growing and youthful population already highly concentrated in urban areas. Growth is not only fuelled by Africa’s natural
resources and minerals, but also by its rising consumer markets leading to a growing demand for a wide range of products requiring plastics, from mobile phones to packaging. While much of this is still currently import- ed, there is now massive investment going on in plastics processing operations driving double digit growth in polymer demand. However, Africa is a very complex market covering
53 countries and 2,000 languages and dialects. The needs of North Africa are markedly different to those of Sub-Saharan Africa, while market conditions are vastly different in the well developed South African market compared with most other Sub-Saharan countries. Three African countries – Nigeria, Egypt and South
Africa – currently account for nearly half of polymer demand in the continent and for nearly all polymer production for the region. Installed production capacity in Africa for thermo-
plastic polymers is estimated at just over 4 million tonnes for 2014. However, nearly 600,000 tonnes of this is believed not to be operating. These plants are located
www.compoundingworld.com August 2014 | COMPOUNDING WORLD 17
in North Africa and their closure is largely the result of the age of the plants, lack of feedstock and the disruption caused by the civil war in Libya in 2011. Despite signifi cant investments in new capacity in Nigeria, South Africa and Egypt in recent years, Africa remains a net importer for all resins and is expected to remain so for the foreseeable future. Commodity plastics dominate the market with
polyolefi ns accounting for about 60% of demand. This is partly because of the lack of local availability of engi- neering thermoplastics and partly because of the limited amount of manufacturing for automotive, domestic appliances and other technical products in the region. The largest volume is accounted for by polypropylene resins with the material being widely used for raffi a
Polypropylene is widely used in Africa for producing
raffi a bags and sacks
Africa: the
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