Africa Plastic Machinery Industry Market
Africa is playing an increasingly important role in the global plastics and packaging industry, mainly due to its stable economic growth rate, young labor force, rising middle class, strong consumption power, etc. since recent years, which has allowed the growth of people’s livelihood consumption to drive the most relevant products for people’s livelihood. The demand momentum of the plastic products and packaging industry and the high growth of the African plastic industry is reflected in the steady growth of plastic products and plastic machinery. In recent years, the economic growth rate of many African countries has remained between 8% and 12%, making the African continent one of the few regions with high economic growth in the world, second only to the Southeast Asian Nations Association in Asia. Such excellent economic performance will also make plastic Demand for products and imports of plastic machinery have increased. The African continent, which has a population of nearly 700 million and stable economic growth, has become a new gold brick in the eyes of many international manufacturers, especially for Plastics Production Machinery (PME) and plastic raw materials. (Plastics Material Resins, PMR) and other industries have high hopes for the African market.
However, doing business in Africa is not as easy as it is in Asian countries. The bureaucracy, corruption, inadequate infrastructure, and appropriate labor quality of African governments are all barriers to entering the African market. In the World Bank’s report on the difficulty of doing business, it is more directly pointed out that Africa is very difficult.
According to reports from related industries, the volume of plastic products used in Africa has grown by 150% in the past 6 years, with a compound annual growth rate (CAGR) of 8.7%. The growth rate of plastic products imported into Africa is between 23% and 41%. From these growth figures, more experts predict that plastic consumption in East Africa alone will grow three times in the next five years. Take Kenya as an example. In 2004, the average amount of plastic used per person per year was 10 kg, but by 2015 it increased to 20 kg. This figure is still lower than that of other African countries. Although this number seems considerable, the plastics industry in Africa still faces the following challenges.
The following describes the current situation of the plastics market in several East African countries: