Global Firms Get Slice of Africa Market Through Partnerships

Africa’s construction industry is growing despite the challenge of prolonged impacts of COVID-19 on the sector, with more international coatings and paints companies eyeing the continent’s architectural and decorative paints market, the two segments reaping from the increased investments in new infrastructure and housing developments.

The continent had, as of the last quarter of 2021, nearly 462 construction projects under development valued at $521 billion, according to consultancy
firm Deloitte.

There was an increase in both the number and value of construction projects by 20% and 30.7% respectively, with the market analyst saying 2021 was a year the continent reported “several projects breaking ground, including mega projects in certain parts of the continent.”

These construction and building projects spanning the sectors of transport, energy and power, real estate, water, shipping and ports, healthcare, oil and gas, education and mining, could account for more than 80% of the coatings and paints demand especially in Sub-Saharan Africa, with some of the international suppliers now seeking new partnerships to distribute their products in the region.

The partnerships with local coatings and paints distributors would make it easier and cheaper for international companies keen on strengthening their presence in the region as well as overcoming possible entry barriers.

For example, in South Africa, indirect investment through partnerships helps international coatings and paints firms overcome market entry barriers and localized challenges such as the Black Economic Empowerment (BEE) policy. This policy aims to facilitate broader participation in the economy by black people and is considered more of an affirmative action to redress the huge inequalities created by decades of apartheid regime.

Some analysts have described this government-sponsored BEE legislation as one of the biggest strategic challenges providing both threats and potential new business opportunities in any commercial sector for companies in South Africa.

Nevertheless, Africa’s coatings and paints landscape has in recent months attracted new distribution partnerships, with South Africa and Kenya being the latest target markets for international companies seeking a foothold in the continent.

In the latest partnership agreement, which is likely to stir the South Africa market in particular, a new distribution deal has been unveiled between Paris-based Safic-Alcan, an independent distributor of specialty chemicals, and Germany company Zschimmer & Schwarz, a global supplier of chemical auxiliaries and specialties.

The two companies said on March 1, 2023 the new deal would see Safic-Alcan promote Zschimmer & Schwarz’s product portfolio, specifically the SYNTRAN and SYNPRINT range, in several markets including South Africa.

The other markets covered in this distribution agreement are Portugal, United Kingdom and Ireland.

“This portfolio of film forming polymers serves a wide range of end-use applications from the industrial coatings and graphic arts sectors,” Safic-Alcan said in a statement.

“We are thrilled to have reached this agreement. SYNTRAN and SYNPRINT range will definitely allow our technical sales teams to enhance our regional product offerings, and better serve formulators looking for water-based acrylic binders, anionic as well as cationic, tailored for specific substrates and applications, such as wood, metal, concrete or paper coatings” added Jean-Marie Schmuck, Safic-Alcan’s business development director Coatings & Construction.

Zschimmer & Schwarz, a family-owned venture founded in Chemnitz in 1894, focuses in the manufacture of paints and coatings as well as production and supply of tailor-made chemical auxiliaries for the leather, ceramic, textile and chemical fiber industries.

Earlier, in October 2022, BRB Silicones South Africa Pty. Ltd., a full subsidiary of BRB International BV, announced the appointment of Retba Consulting Limited, a distributor for paint, coatings, adhesive, packaging and polyurethane industries, to carry out the distribution of silicone product portfolio for paint, coatings and inks in at least 19 African countries.

BRB International BV is a wholly-owned subsidiary of PETRONAS Chemicals Group (PCG), one of the largest integrated chemicals producers in Southeast Asia and a part of the PETRONAS Group, a Fortune Global 500 company.

“With the appointment of Retba, we will be positioned to meet the current and future demands of paint, coatings and inks industries in these countries,” said Marcin Wasik, VP sales for BRB International B.V.

Retba’s new distribution markets include Angola, Benin, Burkina Faso, Cameroon, Cape Verde, Chad, Republic of Congo, Democratic Republic of Congo, Ghana, Guinea, Côte d’Ivoire, Madagascar, Mali, Niger, Nigeria, Mauritania, Mozambique, Senegal and Togo.

“Silicone based products from BRB complement well with Retba’s existing product range of resins, additives, fillers and pigments,” Wasik added.

Retba Consulting Limited, based in Crowthorne, UK, which also offers one-to-one trade services to chemical manufacturers and end users across industries, appointed in November 2022 Lohman Chemicals & Solvents Limited for sales distribution of silicone product portfolio for personal care, home and auto care industries for Kenya.

Lohman Chemicals and Solvents Limited, founded in 2012, is an independent proprietary chemical trading company distributing solvents, glycols, base oils, phthalates, intermediates and specialties in a variety of packaging in Kenya and other East African countries.

Lohman Chemicals served various industries such as paint, printing inks, adhesive, textile, leather, detergent, automobile, cosmetic, pharmaceutical, agriculture, food, construction and water treatment.

“With the appointment of Lohman, we will be positioned to meet the current and future demands of personal care, home and auto care industries in Kenya,” said Judith Salden, EMEA sales leader for BRB International B.V. “Silicone based products from BRB provide good synergy with Lohman’s existing range of products.”

With Africa’s construction industry poised to grow even bigger in the short to medium term, more international coatings and paints suppliers are expected to compete for a share of this market, triggering signing of more channel and distribution partnerships agreements.