Profile of the African paint industry

This could reach a total of 1.7 million tonnes by 2018 provided an annual growth rate of 4.0% is attained.

Use of industrial coatings remains limited

The architectural and decorative coatings for consumer and professional users correspond to a staggering 83.4% of the total demand for paints. This is also one of the fastest expanding segments due to the growing amount of construction activity. With the emergence of a middle class and the improving purchasing power of consumers, the quality of paints is also evolving. In addition, anti-bacterial decorative paints are entering the market and have been used on the interior walls of public buildings such as schools and hospitals. The use of industrial coatings remains limited in Africa. Industrial wood coatings together with general industrial coatings are the main industrial coatings employed. The higher performing protective, marine and automotive coatings are scarcely used due to the small-scale oil, marine and vehicle production industries in the region. There is much interest centred on powder coatings due to their higher levels of protection.

South Africa’s economy has slowed down

On a country-by country basis, South Africa stands out as the largest paint consumer in the region, closely followed by Egypt. However, South Africa’s per capita paint consumption (5.6 kg/head) is almost double that of Egypt (2.9 kg/head). Although South Africa’s economy contracted during the global financial crisis, it has now recovered but growth has since slowed down. The demand for paints and coatings has followed the same fate, showing the lowest growth rate in the region (CAGR 2.5%) over the forecast period. In contrast, the demands for paints in Mozambique (CAGR 7.4%), Libya (CAGR 7.1%) and Ethiopia (CAGR 6.7%) are showing the fastest expected growth rates, which is unsurprising given the low overall paint consumption levels and the increased investments in the countries in question.