sub-sarahan africa: what the future holds for ipc suppliers within the african market
TRANSCRIPT
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
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
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Expansion of the sub-region’s mining and metals, power generation, food, beverage manufacture has also contributed to strong IPC product demand growth
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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
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Automation systems are being purchased and periodically upgraded to ensure that regional suppliers are as competitive as lower priced Asian imports
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Sub-Saharan African (SSA) demand is trending upwards driven by regional process industry companies investing in becoming more efficient
Source: Frost & Sullivan analysis.
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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
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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
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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%
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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%
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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%
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The Food And Beverages Processing Sector Is Poised For Strong
Growth Driven By The Rapid Urbanisation Rates Within Sub-Saharan
Africa
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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%
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Relationship Building Within Key Industrial Sectors And Countries Is A
Strategy That Most IPC Suppliers Should Adopt To Sustain Revenue
Growth
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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
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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
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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