Market Trends of africa engineering plastics Industry
Manufacturing on the rise to tackle the rapidly growing demand
- South Africa is the leading manufacturing hub in Africa. Its manufacturing capabilities, efficient logistics network, and preferential regional market access position the country as an ideal location for electronics companies seeking to supply their products to Africa. South Africa has a diverse electronics industry that ranges from electrical machinery, household appliances, and telecommunication equipment to consumer electronics. In 2022, the African region imported around 70% of its local electrical and electronics demand.
- The consumer electronics industry still relies heavily on imports. According to estimates, South Africa brought 60% of all consumer electronics into Africa in 2018. In 2020, the electrical and electronic production in the country decreased at a growth rate of around 3.2%, by revenue, compared to the previous year, owing to the widespread lockdown adopted by the government and the supply chain disruption faced due to the lockdown. In the feature phone space, shipments were down by 26.6% to 21.9 million units as vendors were transitioning away from these devices toward entry-level smartphones. All such factors led to a decrease in the production of electrical and electronic components in the region at a CAGR of -9.41% from 2020 to 2022.
- The government is focused on promoting and supporting domestic manufacturing, R&D, and developing safety standards for the electrical and electronics manufacturing industry. The output of electrical and electronic industrial components is anticipated to record a CAGR of 6.28% during the forecast period (2023-2029) to supply the emerging African middle-class population.
Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Rising demand for commercial and military aircraft to drive component production
- Developing economies and government policies boosting construction infrastructure
- South Africa gradually reducing reliance on imports
- South Africa to dominate the trade of PET resin
- South Africa to remain the largest POM resin exporter during the forecast period
- Resin prices to remain under the influence of crude oil prices
- Methods being developed to use eco-friendly glycerol to recycle PC to recover up to 98% of the plastic's monomer
- Growing Electrical & Electronics waste becoming an opportunity for many ABS manufacturers across the region to produce R-ABS.
- Cheap labor and raw materials are drawing foreign investments
- Packaged food and beverages leading the demand for plastic packaging solutions
- Morocco is heavily relying on polyamide imports, and the same is expected in the future
- The automotive and electronics industries are responsible for growing PMMA imports
- Electronics manufacturing increasing the Algerian imports of styrene copolymers
- Africa has ample scope for engineering plastics recycling as the region struggles with a 12% recycling rate
- The PET recycling rate in South Africa reaches 62% followed by Nigeria at 15-20% Morocco at 5-10%, and Ghana at 1-2% in 2021
