AFRICA’s shaky transport infrastructure is a major obstacle to the development of a continental chemicals industry, says Patrick Earlam of the Deloitte business consultancy.
Although established multinationals and a growing number of Asian companies, particularly Chinese, believed there were significant opportunities in Africa, Mr Earlam said they were put off by the perils of moving toxic products across the continent’s often badly-maintained roads network.
"Transport of chemicals across Africa is a major barrier," he said. "If infrastructure does not improve, it will be difficult to grow the chemicals sector significantly."
Mr Earlam, the Johannesburg-based head of Deloitte’s Southern African chemicals division, was speaking after the release of an international Deloitte report on the chemicals industry. It found the tentative economic recovery in mature markets is likely to encourage more mergers and acquisitions in an industry that has seen plenty in recent times.
"In highly fragmented markets, (further) consolidation will be important as companies seek to rationalise capacity and gain economies of scale, while demonstrating top-line growth," the report said, and "there will be a strong cadre of targets for mergers and acquisitions activity".
Agrochemicals (a generic term for pesticides, synthetic fertilisers and other chemical products used in agriculture) are forecast to be particularly busy, as accelerating population growth and an expanding middle class in emerging countries increase the need for food production. READ MORE
Source: www.bdlive.co.za
No comments:
Post a Comment