Greentech Lead Africa: The compound annual growth rate
(CAGR) for water treatment chemicals in the mining sector in South Africa,
Botswana and Namibia over 2010-2017 is projected at 3.8 percent
while the CAGR for oilfield water treatment chemicals
in Angola and Nigeria is forecast at 10.5 percent
over the same period, says new analysis from Frost & Sullivan.
South Africa is currently the only country in
Sub-Saharan Africa (SSA) with significant local manufacturing of water and
wastewater treatment chemicals used in the mining and oilfields markets. In
contrast, Nigeria, Angola, Botswana and Namibia rely
on import of these chemicals, Frost & Sullivan said.
“Due to growing environmental awareness, companies
are under pressure to ensure they operate in an environmentally friendly
way,” noted Frost & Sullivan’s Chemical Materials & Food Research
analyst Tatenda Zingoni. “Increased scrutiny of the African
operations of major multinational companies is expected to contribute to growth
in the uptake of water and wastewater treatment chemicals.”
Mining and oil and gas markets constitute a sizeable
proportion of the economies of several countries in SSA. These markets are
major consumers of water and, in turn, produce large volumes of wastewater.
Rising investment in water infrastructure across SSA is
expected to enable increased demand for water treatment chemicals. At the same
time, Mega Trends like infrastructure development, paralleled by overall
economic development, are set to result in a heightened demand for water
treatment chemicals.
However, a key problem for many countries in SSA is their
dependence on imported raw materials for product manufacturing, as well as
imported finished products. This exposes local manufacturers and end users to
potential import-related supply chain bottlenecks, the report said.
Direct linkages between local producers and distributors
with international corporations will reduce the likely bottlenecks which could
result from delays in the supply chain. It will also enable access to
well-developed technologies. Proximity to end users will also be important in
order to provide effective support services.
“Price and quality will be the key considerations
for end users in the SSA markets,” concluded Zingoni. “The provision
of high-quality products and services at affordable prices will also help
companies establish brand loyalty and capture market share.”