EVENT
Opportunities
to step up manufacturing capacity Countries across sub-Saharan Africa are actively seeking to reduce their dependence on food imports. Growing local manufacturing will mean additional demand for food and beverage processing machinery and equipment across the continent.
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and help manufacturers control costs. FRICAN FOOD IMPORTS, expected to South African food manufacturers are also top $110 billion annually by 2025, are looking to the export market, meaning they increasingly unsustainable. Bolstering will likely focus on technologies that support local production capacity is regarded as product consistency and quality to meet key to economic growth as the continent’s global food standards. population booms and rapid urbanisation The South African government is takes place. The growth of urban middleprioritising the sector: food and beverages class consumers in Africa could lead to $645 is the biggest component of South Africa's billion in growth in consumer spending manufacturing industry, with the government between 2015 and 2025 - $167 billion in food actively encouraging further development and beverages, McKinsey reports. of agriculture and the agro-processing Across sub-Saharan Africa, we see a sector. South Africa’s Department of Trade trend for governments to move away from and Industry has in the last three years food imports, and incentivise improved funded the food-processing sector to the agriculture, agro-processing and food and value of R736 million in incentives, while beverage manufacturing locally. Cameroon’s its Enterprise Investment Programme (EIP) Ministry of Commerce recently announced incentive has disbursed funds of plans to suspend the importation of R636 million and facilitated investments of about 50 products, Angola’s Produção R3.7 billion in the sector, and a Co-operative Nacional, Diversificação das Exportações e Incentive Scheme has disbursed more than Substituição das Importações (Programme R100 million in support of agro-processing. to Enhance Production, Diversify Exports In addition, two major projects in foodand Substitute Imports; PRODESI) seeks to processing benefited from tax incentives replace imports with locally manufactured to the value of R1.1 billion. goods and diversify exports, while Nigeria clamped down on funding for food IMPORTED MACHINERY, EQUIPMENT imports in 2019. NEEDED FOR GROWTH “We expect to see moves along the same While efforts are underway to stimulate lines in countries like Mozambique and agro-processing and manufacturing Tanzania, so there will be opportunities capacity, most of the necessary to supply manufacturing machinery and manufacturing machinery and equipment equipment into these markets, as is not produced locally. entrepreneurs start entering Whitehouse notes that most the manufacturing arena,” machinery and equipment Liz Whitehouse, for the manufacture of MD of African market food and drink in South researchers Africa Africa is imported. House explains. Food & drink technology (FDT) As South Africa is a South Africa, Africa, will be held from key gateway into the despite its July 13-15, 2021, at Gallagher rest of the region, sophisticated food Convention Centre this equipment is also manufacturing in Johannesburg. sold out of South sector and strong Africa into sub-Saharan consumer market, Africa. “Companies in is currently facing southern Africa would look to slow domestic economic South Africa as their source of growth. Manufacturers are foreign machines and equipment, now challenged in controlling and demand is likely to pick up as their production costs while still meeting manufacturing capacity grows,” she says. consumer demand, which has remained “In 2019, South Africa’s imports of machinery steady. This could see more investment in for the industrial preparation or manufacture advanced technologies to boost efficiencies
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Workers in a food processing facility
of food or drink amounted to R1.8 billion. Importantly this reflects a 64% increase in value over a five-year period from 2015. Exports from South Africa of machinery in this tariff heading to SADC amounted to R407 million in 2019.” SA GATEWAY TO SUB-SAHARAN AFRICA South Africa remains a strategic gateway between sub-Saharan Africa and the rest of the world, which is why delegates from across the continent converge in South Africa at international exhibitions and conferences such as food & drink technology (FDT) Africa. FDT Africa 2019, which was co-located with IFAT Africa and analytica Lab Africa, attracted over 8 000 visitors from across the continent to assess products and services from 65 exhibitors from 13 countries and view country pavilions hosted by China, India and Germany. “There is a keen mutual interest in boosting trade between global and southern African businesses. food & drink technology (fdt) Africa, which covers the entire food and drink value chain including processing, packaging, filling and logistics, is proving to be a key networking opportunity and product showcase for African decision makers,” Whitehouse, concludes. •
2020 Quarter 2 | Food Manufacturing Africa
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