sub-sarahan africa: what the future holds for ipc suppliers within the african market

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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

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Page 1: Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

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

Page 2: Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

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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

3

Expansion of the sub-region’s mining and metals, power generation, food, beverage manufacture has also contributed to strong IPC product demand growth

4

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

5

Automation systems are being purchased and periodically upgraded to ensure that regional suppliers are as competitive as lower priced Asian imports

1

Sub-Saharan African (SSA) demand is trending upwards driven by regional process industry companies investing in becoming more efficient

Source: Frost & Sullivan analysis.

Page 3: Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

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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

Page 4: Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

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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

Page 5: Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

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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%

Page 6: Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

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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%

Page 7: Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

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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%

Page 8: Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

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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

`

`

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%

Page 9: Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

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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

`

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

Page 10: Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

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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

Does This Look Interesting? There’s More…

Page 11: Sub-Sarahan Africa: What the future holds for IPC suppliers within the African market

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Contact Us

James Fungai Maposa Programme Manager – Industrial Automation,

Mining & Manufacturing

+ 27 (0) 21 680 3203

[email protected]

Guillaume de Bassompierre Director of Business Development – Africa

+ 27 (0) 21 680 3582

+ 27 (0) 71 684 0011

[email protected]