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Infrastructure Backlog to Offer Opportunities for Chemicals and Materials Suppliers in Sub-Saharan Africa Finds Frost & Sullivan - Increased government expenditure on infrastructure will drive demand for infrastructure chemicals and materials
Infrastructure Backlog to Offer Opportunities for Chemicals and Materials Suppliers in Sub-Saharan Africa Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2012/01/09 - Increased government expenditure on infrastructure will drive demand for infrastructure chemicals and materials.

   
 
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The demand for paints and coatings is expected to present countless opportunities for suppliers of raw materials and finished products in the Sub-Saharan Africa (SSA) region. Increasing urbanisation, coupled with the growth of the middle class, are also set to promote market prospects. The major infrastructure chemicals and materials used in the Sub-Saharan Africa (SSA) region include waterproofing, sealants and grouts, thermal insulation and paints and coatings. Uptake of these products is highly dependent on the level of construction activities.

New analysis from Frost & Sullivan (chemicals.frost.com) Sub-Saharan Africa Infrastructure Chemicals and Materials Market, finds that the market was worth $524.0 million in 2010 and estimates this to reach $612.0 million in 2017. South Africa, Kenya and Ghana are the main countries covered in this research.

The Government is the largest driver for growth in the development of infrastructure and, therefore, has a significant bearing on the level of demand for infrastructure chemicals and materials.

"SSA is characterised by a considerable infrastructure backlog," notes Frost & Sullivan’s Chemicals, Materials & Food Research Analyst Tatenda Zingoni. "Governments in the SSA region have plans to increase infrastructure investment, signalling potential increase in the demand for infrastructure chemicals and materials."

The decisions by governments, therefore, significantly affect demand for infrastructure chemicals and materials. The market is set for rapid expansion as governments in South Africa, Kenya, and Ghana have programmes underway to increase the infrastructure stock in these countries.

Currently, a number of countries in SSA are involved in the import of raw materials for manufacturing of products, along with import of finished products. The reliance on imports exposes local manufacturers and end users to potential supply chain bottlenecks related to importing.

"Ghana, Kenya and South Africa rely on the importation of some raw materials for manufacturing infrastructure chemicals and materials," explains Zingoni. "Delayed raw material shipments, as well as delays at ports of entry, pose a major challenge to suppliers and distributors."

Manufacturers of infrastructure chemicals and materials can ensure they are not negatively or largely impacted by delays, that could result from supply chain disruptions, by increasing their stock holding levels.

"Having control of the raw material availability for the manufacturing process enables manufacturers to have access to critical inputs, thereby avoiding bottlenecks in the production system," advises Zingoni. "Although increasing stock levels raises costs, this works out to be a better option than running out of raw materials, which would negatively impact the manufacturing cycle."

If you are interested in more information on this study, please send an email with your contact details to Samantha James, Corporate Communications, at samantha.james[.]frost.com.

Sub-Saharan Africa Infrastructure Chemicals and Materials Market is part of the Chemicals & Materials Growth Partnership Services programme, which also includes research in the following markets: The Future of Manufacturing in South Africa, Strategic Opportunities for the Biofuel Industry in Key Sub-Saharan African Countries, Sub-Saharan African Market for Polyurethane and South African Market for Bio-renewable Chemicals. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

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Infrastructure Backlog to Offer Opportunities for Chemicals and Materials Suppliers in Sub-Saharan Africa Finds Frost & Sullivan

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