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Nigeria Consumer Goods (Personal care and Home care)

Executive Summary

This sector fact sheet provides key trade and investment related statistics for the Nigerian consumer goods sector,

particularly personal and home care products segment. Specifically, it shows global trade and investment flows

including an analysis of top markets and products for South Africa and the Western Cape, highlighting the largest

and fastest growing products and sub-sectors. The key highlights in the consumer goods sector are provided below:

TRADE:

Since 2004, Nigeria’s demand of personal and homecare products greatly outstripped its supply,

registering consecutive trade deficits.

Ivory Coast was Nigeria’s largest export market for personal and homecare products, while the United

Kingdom was the largest import market.

South Africa was Nigeria’s 10th largest import market experiencing significant import demand from the

West African nation.

All of Nigeria’s top 10 imported products experienced robust growth exceeding 85%.

South Africa has been a net exporter of personal and homecare products to Nigeria since 2005.

South Africa’s leading export to Nigeria was polishes, creams for footwear or leather valued at ZAR58.5m

and accounted for 31% of the country’s personal and homecare products exports to Nigeria.

In 2013, the Western Cape registered its highest export level breaking the ZAR7m barrier for the first time

in six years.

By growing by an astounding 6600%, hair preparations was the province’s largest personal and homecare

export product to Nigeria

INVESTMENT:

Between January 2004 and December 2014 a total of 17 FDI projects were recorded in the Nigerian

consumer goods sector. 41% of the projects were into the cosmetics, perfume, personal care & household

products subsector. Nigeria-based Jumia recorded the only investments into the global consumer goods sector. The online

retailer, invested into 3 projects into Ghana, Cameroon and Uganda.

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Table of Contents

Executive Summary ............................................................................................................................................. 1

1. Product Description ..................................................................................................................................... 3

2. African Market .............................................................................................................................................. 3

3. Nigeria Consumer Goods Market ............................................................................................................. 4

3.1 Distribution Channels ......................................................................................................................... 4

3.2 Companies .......................................................................................................................................... 5

4. Trade ............................................................................................................................................................. 6

4.1 Nigeria global trade in consumer goods ......................................................................................... 6

4.2 South African trade of Consumer goods with Nigeria ................................................................... 9

4.3 Western Cape Trade of consumer goods with Nigeria ............................................................... 11

5. FDI ............................................................................................................................................................... 13

5.1 Inward FDI ......................................................................................................................................... 13

5.2 Outward FDI ...................................................................................................................................... 14

3

1. Product Description

The global consumer goods industry consists of any tangible commodity purchased by households to satisfy their

wants and needs. Consumer goods may be durable or non-durable. Durable goods (e.g., autos, furniture, and

appliances) have a significant life span, often defined as three years or more, and consumption is spread over this

span. Examples of durable goods includes autos, furniture, and appliances. Non-durable goods are purchased for

immediate or almost immediate consumption and have a life span ranging from minutes to three years. Examples

of non-durable goods include food, clothing, and gasoline.

This factsheet will focus on the personal care products and homecare products

Personal Care Products: This segment includes shampoo, toothpaste, soap, deodorants, and make-up.

Homecare Products: This segment includes household cleaners and kitchenware.

2. African Market The consumer goods sector is rapidly growing within Africa, its growth potential lies not just in the expanding middle

class but also in Africa’s overall population growth. Africa’s collective population is estimated at around 1 billion

people at present, and it is expected to grow rapidly to 1.4 billion by 2025, where China is currently. According to

data from the Population Reference Bureau, Africa is a young continent with around 41% of the total population

under the age of 15 years. In addition, Africa is becoming increasingly urbanised. According to an Africa Progress

report (2010) by consulting group Frost & Sullivan, African city populations will increase by 25% by 2025, while by

2050, 60% of Africa’s population will reside in urban areas. Urbanisation is linked to an increased demand for fast

moving consumer goods (FMCG), in which the personal and homecare products segment belongs to.

The figure below shows Africa’s top 10 retail companies. The companies are all headquartered in South Africa.

Source: The Habari Network, 2015

Several analysts have compared the African potential for FMCG favourably to the Indian potential. Both are huge,

emerging consumer markets, but unlike India, Africa has 55 countries, and that means around 55 different rules,

regulations and border controls to consider when moving FMCGs. This is one of the biggest barriers FMCGs

companies will need to overcome to maximise growth on the continent. Despite these issues, the future looks bright

for FMCG on the continent as the number of consumers and their expendable income continues to rise in the

coming decades.

1,9

1,9

2,7

3

3,1

3,4

5,1

7

7,2

9,87

0 2 4 6 8 10 12

Clicks Group

Foschini

Masscash

JD Group

Edgars Consolidated Stores

Woolworths holding Limited

The Spar Group

Pick n Pay

Massmart Holdings

Shoprite holdings

AFRICA'S TOP 10 RETAIL COMPANIES, USDbn

4

The figure below shows the number of retail outlets outside South Africa in 2013.

3. Nigeria Consumer Goods Market

The Nigerian personal care sector is dominated by international brand names. Key role players in the industry

include Unilever Nigeria, PZ Cussons, Soulmate Industries, House of Tara International, MAC Cosmetics, and

Sleek Nigeria. According to Euromonitor International, mature personal care categories such as general purpose

body care and lip gloss continued to grow rapidly. Stronger growth was also seen in developing categories such

as shower gels, men’s deodorants, and women’s razors. Demand for the basic products is mainly expected to be

driven by population growth, the other categories will rely on increases in disposable income. Hair care products

are generally considered to be more essential than many other categories of personal care in Nigeria, thus it has

performed well over the past decade, driven by the growing young working female population.

Other factors that have supported the sector’s performance are the rise of the internet, and the growing number of

Western style shopping centres in the country. Soft Sheen Carson had an 11% share in the hair care market in

2012, with its leading brand Dark & Lovely enjoying loyal support from customers. The men’s grooming category

is also expected to show rapid growth, though from a low base. Demand has increased as the availability of these

products improved, which indicates that there was in effect a latent demand.

Growth in Nigeria’s home care sector is expected to be robust over the medium term, as consumers continue to

switch from (cheaper) general substitutes to products that are task-specific (e.g. switching from using a bar of soap

to clean various household items to using different products to fulfil different needs), in line with rising incomes.

Other factors driving this market include urbanisation and increased home ownership associated with urbanisation.

3.1 Distribution Channels

According to Euromonitor (2015), with the increase in the construction of shopping malls in Nigeria across different

cities, hypermarkets and supermarkets are continuing to gain share of distribution in beauty and personal care.

However, open markets still lead in terms of distribution, although this channel continues to lose share due to

increasing modernisation of retail in Nigeria, whilst independent small grocers are growing well as they adapt to a

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more modern retail environment. The convenience and ambience of stores offer middle- and high-income

consumers a stress-free shopping experience compared with open air markets, which are often crowded and

unpredictable. The specificity of prices and the absence of haggling also make these stores attractive.

3.2 Companies

The table below shows the list of supermarket chains in Nigeria, as well as Nigeria’s selected beauty and personal

care and homecare companies.

LIST OF SELECTED SUPERMARKET CHAINS IN NIGERIA, 2014

HEAD OFFICE

PRODUCTS

Addide Supermarket Nigeria Personal care, food, drinks, cereals, household, food to go

Supermart.ng Online Supermarket Nigeria Food & drink, home appliances, drinks

DePrince Supermarkets Nigeria Household, Pharmaceuticals, beauty and skin

Gloo.ng Online Supermarket Nigeria Household, Pharmaceuticals, Food, home appliances

Game Stores South Africa Appliances, computer, home and furniture, sports and fitness

Park 'n' Shop Supermarkets South Africa Food & drink, clothing, baby and wellness, small appliances

Shoprite South Africa Food & drink, baby, small appliances

Spar Supermarkets South Africa Food & drink, baby, small appliances

Goodies Nigeria Food & drink

SELECTED NIGERIA BEAUTY & PERSONAL CARE COMPANIES

HEAD OFFICE

PRODUCTS

House of Tara International in Beauty and Personal Care (Nigeria)

Nigeria Cosmetic & beauty supply

PZ Cussons Nigeria Plc in Beauty and Personal Care (Nigeria)

Nigeria Personal care , homecare, electrical goods, household, equipment

Soulmate Industries Ltd in Beauty and Personal Care (Nigeria)

Nigeria Haircare products

SELECTED NIGERIA HOMECARE COMPANIES HEAD

OFFICE PRODUCTS

Eko Supreme Nigeria Ltd in Home Care (Nigeria) Nigeria Homecare market, powder detergent & bar soap

Gongoni Co Ltd in Home Care (Nigeria) Nigeria Air fresheners, disinfectants, insecticides

Hygiene Products Ltd in Home Care (Nigeria) Nigeria Hygiene products

Source: Euromonitor, Princeebeano; Supermartng, 2015

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4. Trade

4.1 Nigeria global trade in consumer goods

The graph below depicts Nigeria’s trade in personal and homecare goods. Since 2004, trade in these goods has

been steadily increasing, with Nigeria’s demand greatly outstripping its supply. Nigeria’s high demand for personal

and homecare goods is demonstrated by the continual trade deficits in the period analysed (2004-2013). In 2013

Nigeria’s exports grew by 21% to be valued at ZAR138m while its imports grew by 29% and reached ZAR4.8bn.

Source: TradeMap, 2015

Nigeria’s largest export market, Côte d'Ivoire commanded 32% of all personal and homecare products from Nigeria,

these exports grew by 29% from the previous year. Ghana (ZAR33m) was Nigeria’s second largest export market,

followed by Togo (ZAR27m) and Niger (ZAR4.2m). Togo, Niger, Benin are all Nigeria direct neighbours, this

suggests if one is to invest in the Nigerian market, they will have direct access to these markets and regions by

virtue of proximity. In fact 8 of the top ten export markets were all within Africa.

TOP 10 DESTINATION MARKETS FOR EXPORTS OF CONSUMER GOODS FROM NIGERIA, 2013

RANK DESTINATION

MARKET

VALUE 2013

(ZARm)

% GROWTH 2012-2013

% SHARE

2013

1 Côte d'Ivoire 43.4 29.24% 31.61%

2 Ghana 32.7 10.30% 23.83%

3 Togo 27.3 26.66% 19.90%

4 Niger 4.2 52.89% 3.04%

5 Benin 3.7 25.84% 2.70%

6 Congo 3.3 85.21% 2.42%

7 South Africa 2.7 18.65% 1.96%

8 United States 2.6 164.85% 1.91%

9 United Kingdom 2.6 197.92% 1.88%

10 Burkina Faso 1.7 60.55% 1.22%

TOTAL EXPORTS 137.4 20.73% 100.00%


The United Kingdom (ZAR737m) was Nigeria’s largest personal and homecare import market. The second largest

import market, China (ZAR633m) commanded 48% of Nigeria’s personal care and homecare imports, followed by

the United States (ZAR502m) with 16%. The major import markets grew in excess of 16% with Republic of Korea

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Exports (ZARm) 20,0 27,8 32,5 25,9 35,0 58,8 51,7 73,0 113,8 137,4

Imports (ZARm) 953,2 1 011,8 1 080,8 1 472,9 2 243,7 2 236,1 2 183,3 2 720,3 3 685,7 4 771,8

Trade balance (ZARm) -933,2 -984,0 -1 048,3 -1 447,0 -2 208,8 -2 177,2 -2 131,6 -2 647,3 -3 571,9 -4 634,4

-6 000,0

-4 000,0

-2 000,0

0,0

2 000,0

4 000,0

6 000,0

Valu

e (

ZA

Rm

)

NIGERIA GLOBAL TRADE OF CONSUMER GOODS, 2004-2013

7

and South Africa exhibiting the largest growth in demand for their goods. This is particularly encouraging for South

Africa as we are Nigeria’s largest market within Africa.

TOP 10 SOURCE MARKETS FOR IMPORTS OF CONSUMER GOODS TO NIGERIA, 2013

RANK SOURCE MARKET VALUE

2013 (ZARm)

% GROWTH 2012-2013

% SHARE

2013

1 United Kingdom 737.0 39.32% 15.44%

2 China 633.0 47.54% 13.26%

3 United States 501.7 16.30% 10.51%

4 Indonesia 363.0 25.02% 7.61%

5 Togo 350.6 37.79% 7.35%

6 Côte d'Ivoire 290.1 -21.70% 6.08%

7 Korea, Republic of 254.9 74.63% 5.34%

8 Malaysia 241.4 34.82% 5.06%

9 India 235.5 32.06% 4.93%

10 France 198.6 54.95% 4.16%

12 South Africa 171.3 55.06% 3.59%

TOTAL IMPORTS 52 716.8 29.47% 100.00%


The top 5 exported consumer products by Nigeria to the top 5 destination markets are listed below:

Côte d'Ivoire (HS6)

Dentifrices (ZAR89.2m)

Surface-active prep, washing & cleaning prep put up for retail sale (ZAR2.2m)

Anionic surface-active agents (ZAR1.8m)

Ghana (HS6)

Surface-active prep, washing & cleaning prep put up for retail sale (ZAR108.8m)

Toilet soap & prep, shaped; papers & nonwovens impreg with soap toilet use (ZAR69.5m)

Room perfuming or deodorizing preparations, nes (ZAR9.6m)

Soap & orgn surf prep, shapd, nes; papers & nonwovens impreg w soap/prep,nes (ZAR5.9m)

Hair preparations, nes (ZAR3.7m)

Togo (HS6)

Toilet soap & prep, shaped; papers & nonwovens impreg with soap toilet use ZAR19.6m)


Niger (HS6)

Perfumery, cosmetic or toilet preparations, nes ZAR55.1m)

Agarbatti & other odoriferous preparations which operate by burning (ZAR39.5m)


Benin (HS6)


Organic surface-active products and preparations for washing the skin, (ZAR1.8m)

Toilet soap & prep, shaped; papers & nonwovens impreg with soap toilet use (ZAR1.4m)

Surface-active prep, washing & cleaning prep put up for retail sale (ZAR115,000)

The top 5 imported consumer products by Nigeria from the top 5 source markets are listed below:

United Kingdom (HS6)

Beauty or make-up preparations nes; sunscreen or sun tan preparations (ZAR24.7m)

Surface-active preparations, washing and cleaning preparations, nes (ZAR19.5m)

Personal deodorants & antiperspirants (ZAR8.4m)

Tableware and kitchenware of plastics (ZAR7.0m)


8

China (HS6)




Household and toilet articles nes, of plastics (ZAR34.8m)

Agarbatti & other odoriferous preparations which operate by burning (ZAR23.3m)

United States (HS6)




Perfumes and toilet waters (ZAR2.9m)

Hair lacquers (ZAR2.4m)

Indonesia (HS6)



Soap nes (ZAR13.5m)

Eye make-up preparations (ZAR1.6m)

Personal deodorants & antiperspirants (ZAR864 000)

Togo (HS6)


Hair preparations, nes (ZAR451 000)

Toilet soap & prep, shaped; papers& nonwovens impreg with soap toilet use (ZAR403 000)

Nigeria’s largest export of personal and homecare products were powders, skin care, whether or not compressed

to value of ZAR579m. Hair preparations was second at ZAR213m. Exports of the top two exports products made

up 60% of Nigeria’s exports of personal and homecare products.

The leading import product by Nigeria was beauty or make-up preparations, valued at ZAR361. Anionic surface-

active agents (ZAR324m) and Surface-active preparations, washing and cleaning preparations, nes (ZAR137m);

were ranked second and third, respectively. As can be seen with Nigeria’s largest trade deficit, there is a great

demand for personal and homecare products in Nigeria, furthermore, the individual growth of imported products

solidify the notion that this market segment Is far from saturation and will continue to grow for the considerable

future.

NIGERIA'S GLOBAL TOP EXPORTS OF CONSUMER GOODS, 2013 NIGERIA'S GLOBAL TOP IMPORTS OF CONSUMER GOODS, 2013

RANK PRODUCT VALUE

2013 (ZARm)

% GROWTH 2012-2013

RANK PRODUCT VALUE

2013 (ZARm)

% GROWTH 2012-2013

1 Powders, skin care, whether or not compressed

578.6 1089.23% 1 Beauty or make-up preparations nes; sunscreen or sun tan preparations

361.1 125.72%

2 Hair preparations, nes 213.2 617.38% 2 Anionic surface-active agents 323.8 24.05%

3 Surface-active prep, washing & cleaning prep put up for retail sale

115.1 216.29% 3 Surface-active preparations, washing and cleaning preparations, nes

137.2 90.56%

4 Toilet soap & prep, shaped; papers &nonwovens impreg with soap toilet use

113.0 216.49% 4 Dentifrices 107.2 96.80%

5 Dentifrices 92.3 143.23% 5 Agarbatti & other odoriferous preparations which operate by burning

93.0 266.52%

6 Perfumery, cosmetic or toilet preparations, nes

57.3 856.44% 6 Hair preparations, nes 80.3 48.34%

7 Room perfuming or deodorizing preparations, nes

47.2 2.73% 7 Personal deodorants & antiperspirants 79.1 63.19%

8 Agarbatti & other odoriferous preparations which operate by burning

39.5 - 8 Household and toilet articles nes, of plastics 52.0 97.93%

9 Personal deodorants & antiperspirants 20.9 2482.10% 9 Soap nes 49.4 85.81%

10 Perfumes and toilet waters 11.5 121.31% 10 Powders, skin care, whether or not compressed

48.2 -25.47%

TOTAL EXPORTS 1 328.1 25.20% TOTAL IMPORTS 1 665.7 60.39%


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4.2 South African trade of Consumer goods with Nigeria

The figure below shows South Africa’s trade of personal and home care products with Nigeria for the period 2005

to 2014. Trade between the two nations has been dominated by South Africa exports to Nigeria resulting in

continuous trade surpluses for the 10 year period. These trade surpluses are testament to the growing demand by

the Nigerian market. In 2013, South African exports grew by 11% while imports declined by 2%.

Source: Quantec, 2015

South Africa’s leading export to Nigeria was polishes, creams for footwear or leather valued at ZAR58.5m and

accounted for 31% of the country’s personal and homecare products exports to Nigeria. The second largest export

was, beauty, makeup and suntan preparations (ZAR55.2m) followed by organic surfactant washing, cleaning

preparations (ZAR11.2m).

Products showing the strongest growth in 2013 were:

Dentifrices: 1429.3%

Organic surfactant washing, cleaning preparations: 456.6%

Beauty, makeup and suntan preparations: 118.4%

Room perfuming or deodorizing preparations, (ZAR2.3m) was South Africa’s personal and homecare import from

Nigeria in 2013 and accounted for 85% of imports. The remainder of imports were minimal but exhibited high growth

for some products coming off a very low base from the previous year.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Exports (ZARm) 34,9 29,2 37,7 76,9 77,3 71,8 92,3 109,1 170,2 188,5

Imports(ZARm) 0,2 0,3 0,3 0,2 0,3 0,3 1,1 2,3 2,7 2,7

Trade Balance(ZARm)

34,7 28,9 37,4 76,7 77,1 71,6 91,3 106,8 167,5 185,9

020406080

100120140160180200

Valu

e (

ZA

Rm

)

SOUTH AFRICA'S TRADE OF CONSUMER GOODS WITH NIGERIA, 2005-2014

10

TOP 10 CONSUMER GOODS EXPORTED BY SOUTH AFRICA TO NIGERA, 2014

TOP 10 CONSUMER GOODS IMPORTED BY SOUTH AFRICA FROM NIGERA, 2014

RANK HS

CODE PRODUCT

VALUE 2014 (ZAR)

% GROWTH 2013-2014

RANK HS

CODE PRODUCT

VALUE 2014 (ZAR)

% GROWTH 2013-2014

1 340510 Polishes, creams etc. for footwear or leather

58 477 516 -22.6% 1 330749 Room perfuming or deodorizing preparations,

2 276 476 4.11%

2 330499 Beauty, makeup and suntan preparations

55 195 537 118.4% 2 330499 Beauty, makeup and suntan preparations n

196 908 464.58%

3 340290 Organic surfactant washing, cleaning preparations

11 200 258 456.6% 3 330590 Hair preparations 109 486 -68.91%

4 330610 Dentifrices 11 056 239 1429.3% 4 330530 Hair lacquers 20 850 -38.39%

5 330720 Personal deodorants and antiperspirants

9 879 178 64.3% 5 340120 Soaps nes 13 618 7.03%

6 330690 Oral & dental hygiene preparations, except dentifrices

9 313 773 29.5% 6 340119 Soaps for purposes other than toilet soap, solid

12 971 79.08%

7 330491 Powders, for skin care and make-up

7 634 984 -35.8% 7 330300 Perfumes and toilet waters

8 034 -52.86%

8 330300 Perfumes and toilet waters 3 568 059 -23.3% 8 330430 Manicure or pedicure preparations

4 819 -87.56%

9 340220 Washing and cleaning preparations, retail

3 332 674 17.0% 9 330710 Pre-shave, shaving and after shaving preparations

3 436 5824.14%

10 330520 Hair waving or straightening preparations

3 014 929 -74.3% 10 340111 Soaps, for toilet use, solid

2 795 962.74%

TOTAL EXPORTS 188 516 917 10.7% TOTAL IMPORTS 2 660 742 100.00%


The top export products (HS6) from South Africa to Nigeria have been analysed to determine the other top markets

for these export products:

Polishes, creams etc. for footwear or leather:

Nigeria (ZAR76m)

Zimbabwe (ZAR20m)

Mozambique (ZAR10m)

Zambia (ZAR6m)

Ghana (ZAR4m)

Beauty, makeup and suntan preparations:

United Kingdom (ZAR186m)

Zimbabwe (ZAR125m)

Angola (ZAR91m)

Zambia (ZAR84m)

Australia (ZAR83m)

Organic surfactant washing, cleaning preparations:

Mozambique (ZAR135m)

Zimbabwe (ZAR109m)

Zambia (ZAR100m)

Angola (ZAR11m)

Mauritania (ZAR10m)

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4.3 Western Cape Trade of consumer goods with Nigeria

In the period shown below, the province has been a net exporter of personal and homecare products to Nigeria as

its exports have been far greater than its imports. After years of subdued growth, the Western Cape’s trade surplus

grew to ZAR12.7m in 2013. The growth in the trade surplus was due to a 148% increase in exports and 117%

increase in imports, however the import growth was due to low trading levels from the previous year.


With its exports growing in excess of 6000%, hair preparations (ZAR5.8m) was the provinces largest export to

Nigeria, this was followed by beauty, makeup and suntan preparations (ZAR4m). The growth seen in these two

products increased their export share to 77%. Also showing strong growth were exports of organic surfactant

washing, cleaning preparations (ZAR386 634).

In terms of imports, manicure or pedicure preparations (ZAR35 630), hair preparations (ZAR20 491) and hair

lacquers (ZAR19 746) were the only significant imports. High growth of other products can be attributed to low

import amounts in previous years.

TOP 10 CONSUMER GOODS EXPORTED BY THE WESTERN CAPE TO NIGERA, 2013

TOP 10 CONSUMER GOODS IMPORTED BY WESTERN CAPE FROM NIGERA, 2013

RANK HS

CODE PRODUCT

VALUE 2013 (ZAR)

% GROWTH 2012-2013

RANK HS

CODE PRODUCT

VALUE 2013 (ZAR)

% GROWTH 2012-2013

1 330590 Hair preparations 5 842 063 6575.0% 1 330430 Manicure or pedicure preparations

35 630 76.41%

2 330499 Beauty, makeup and suntan preparations nes

4 027 242 325.0% 2 330590 Hair preparations, nes 20 491 421.53%

3 330720 Personal deodorants and antiperspirants

864 379 -55.1% 3 330530 Hair lacquers 19 746 121.19%

4 330610 Dentifrices 406 769 13.6% 4 340119 Soaps for purposes other than toilet soap, solid

1 977 -6.08%

5 340290 Organic surfactant washing, cleaning preparations nes

386 634 432.6% 5 330420 Eye make-up preparations

978 1037.21%

6 330749 Room perfuming or deodorizing preparations, nes

181 394 9.0% 6 330499 Beauty, makeup and suntan preparations

899 -30.58%

7 392490 Plastic household, toilet articles not table, kitchen

158 507 2.9% 7 330300 Perfumes and toilet waters

617 1042.59%

8 330430 Manicure or pedicure preparations

107 755 63.9% 8 330491 Powders, for skin care and make-up

378 3.85%

9 392410 Plastic table and kitchen ware

106 352 -75.2% 9 330790 Perfumery, cosmetic or toilet preparations, nes

259 -

10 330510 Hair shampoos 92 357 -14.1% 10 330410 Lip make-up preparations 249 -

TOTAL EXPORTS 12 751 524 148.4% TOTAL IMPORTS 81 266 117.32%


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Exports(ZARm) 7 357 42 10 575 1 10 129 5 5 380 03 6 782 23 6 565 92 4 710 29 5 793 20 5 133 47 12 751 5

Imports (ZARm) - 1 316 3 540 6 157 112 9 313 18 591 14 515 37 394 81 266

Trade Balance (ZARm 7 357 42 10 573 8 10 126 0 5 373 87 6 782 12 6 556 61 4 691 70 5 778 68 5 096 08 12 670 2

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

14 000 000

Valu

e (

ZA

R)

WESTERN CAPE TRADE OF CONSUMER GOODS WITH NIGERIA, 2004-2013

12

The top export products (HS6) from the Western Cape to Nigeria have been analysed to determine the other top

markets for these export products:

Hair preparations:

Nigeria (ZAR5.8m)

Angola (ZAR2.3m)

Zambia (ZAR848 584)

UAE (ZAR488 382)

Mauritius (ZAR452 655)

Beauty, makeup and suntan preparations nes:

United Kingdom (ZAR161m)

Australia (ZAR79m)

United States (ZAR68m)

Japan (ZAR68m)

Germany (ZAR51m)

Personal deodorants and antiperspirants:

Zambia (ZAR8m)

Angola (ZAR4m)

Mozambique (ZAR2m)

Mauritius (ZAR912 281)

Nigeria (ZAR864 379)

13

5. FDI

5.1 Inward FDI

Between January 2004 and December 2014 a total of 17 FDI projects were recorded in the Nigerian consumer

goods sector. These projects represent a total capital investment of ZAR4.96bn which is an average investment of

ZAR291.75m per project. During the period, a total of 2,497 jobs were created. 41% of the projects were into the

cosmetics, perfume, personal care & household products subsector. Two projects by The Foschini group and

Woolworths were from the Western Cape, these projects were mainly concerned with retail activities.

INWARD FDI INTO NIGERIA'S CONSUMER GOODS SECTOR, 2004-2014

PROJECT DATE

INVESTING COMPANY SOURCE

COUNTRY SUB-SECTOR CLUSTER

INDUSTRY ACTIVITY

CAPEX (ZARm)

Jobs Created

Jan-14 Dufry Switzerland Cosmetics, perfume, personal care & household products

Retail Trade Retail 432.4 179

Aug-13 MAC Cosmetics United States Cosmetics, perfume, personal care & household products


Feb-13 MAC Cosmetics United States Cosmetics, perfume, personal care & household products


Feb-13 Procter & Gamble (P&G)

United States Cosmetics, perfume, personal care & household products

Consumer Goods Manufacturing 191.0 243

Sep-12 Grohe Germany Furniture, homeware & related products (Consumer Products)

Consumer Goods Sales, Marketing & Support

51.6 18

Jun-12 3M United States Other (Consumer Products ) Consumer Goods Sales, Marketing & Support

51.6 18

Nov-11 The Foschini Group South Africa General merchandise stores Retail Trade Retail 432.4 179

Sep-11 Woolworths (South Africa)

South Africa Miscellaneous store retailers Retail Trade Retail 432.4 179

Sep-11 L'Oreal France Cosmetics, perfume, personal care & household products

Consumer Goods Sales, Marketing & Support

51.6 18

Aug-11 Massmart United States Other (Consumer Products ) Retail Trade Retail 432.4 179

Oct-09 Procter & Gamble (P&G)

United States Other (Consumer Products ) Consumer Goods Manufacturing 191.0 243

Jul-09 Swatch Group Switzerland Jewellery & silverware Retail Trade Retail 432.4 179

Jan-09 Cilek Turkey Furniture, homeware & related products (Consumer Products)


Nov-07 Africa Consumer Care Limited (AFCC)

India Cosmetics, perfume, personal care & household products


Dec-05 Game Stores South Africa Dolls, toy, & games Retail Trade Retail 432.4 179

Apr-05 Tura International UAE Cosmetics, perfume, personal care & household products


Feb-04 Avelon Greece Building material & garden equipment & supplies dealers


Source: FDI Intelligence, 2015

14

5.2 Outward FDI

Between January 2004 and December 2014 a total of 3 FDI projects were recorded from Nigeria. These projects

represent a total capital investment of ZAR182.79m which is an average investment of ZAR60.93m per project.

Nigeria-based Jumia, an online retailer, has established warehouse’s in Ghana and Cameroon and a sales support

base in Uganda. These investments are part of the company’s wider growth strategy.

OUTWARD FDI INTO NIGERIA'S CONSUMER GOODS SECTOR, 2004-2014

PROJECT DATE

INVESTING COMPANY

DESTINATION COUNTRY

SUB-SECTOR CLUSTER INDUSTRY ACTIVITY CAPEX (ZARm)

Jobs Created

Jul-14 Jumia Ghana Nonstore retailers Consumer Goods

Logistics, Distribution & Transportation

65.6 30

Jul-14 Jumia Cameroon Nonstore retailers Consumer Goods

Logistics, Distribution & Transportation

65.6 30

Apr-14 Jumia Uganda Nonstore retailers Consumer Goods

Sales, Marketing & Support 51.6 18

Source: FDI Intelligence, 2015

For more information on this publication and other Wesgro publications please contact [email protected] or for more

publications visit the Wesgro publications portal on our website at http://wesgro.co.za/publications

mailto:[email protected]

http://wesgro.co.za/publications

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