Building industry and automotive sector support growth in the chemicals industry

The chemicals industry opens business approaches in numerous ways. Due to the growth in the building industry and the increased needs in the automotive sector, the demand for emulsion paints and varnish has risen continuously since several years. Growth rates in the past years have reached 6-8%. The sector of polymers experiences the same demand from the building and automotive industry and offers good sales potential. The turnover in this synthetic numbered in 2006 3,9bn Rand.

Black middle class with a high purchase power

Promising opportunities offers the cosmetic sector. After the end of the apartheid companies increasingly targeted the black consumer since they represent 85% of the total population with a high purchase power to their disposal. In South Africa, the consumer goods industry is benefiting from this growing and free-spending black middle class. Significant growth rates are predicted for the coming years.

Favourable basic conditions for the chemicals industry

South Africa’s export quota in the chemicals sector increased since 1999 by a annual growth rate of 19% due to new trade agreements, an improved competitiveness through reduced production costs and the wealth in natural resources. The country benefits from a more efficient and cost effective access to water and low energy costs. The chemicals industry is still dominated by local companies. Some global players however, have already established local facilities and participate in the national production.