The MENA region offers a new dimension of unprecedented opportunities for the business community. Now unshackled from administrative, regulatory and fiscal constraints, investors can freely penetrate a lucrative market of 400 million consumers. The African market represents one of the most exciting markets for polymers in the world today.
Growth in polymers market in Arica is not only fuelled by its natural resources and minerals but also by its rising consumer markets and industrialisation giving rise to a growing demand for a wide range of products and infrastructure requiring plastics from mobile phones to packaging, much of which is still currently imported.
Demand for polymer in Africa had reached more than 10+ million tonnes in 2018 and by 2021 polymer demand is expected to be just over 13.4 million tonnes. The market has been growing at an average of around 7% per year during the last four years.
Polymer Demand in Some African Countries :
Spotlight on the Plastics Market in Egypt
Egypt is the largest industrial base in the MENA region and the plastics industry in Egypt is growing steadily with over 2.1 million tonnes. In 2018, Egypt consumed plastic materials and resins worth nearly US$ 4 billion. Thanks to its 91+ million population, Egypt tops African polymer consumption with 2 million tonnes per capita consumption of 21.8 kg/head.
Demand is expected to grow at the coming years, due to the increasing number of newly established & long-term planned mega projects. Egypt’s plastics market is supplied 65% from imports and 35% from domestic sources.
Investments at the plastics industry in Egypt in 2016 were US$7.8 bn, while exports of end products reached US$ 0.85 bn as per the Plastics Industries Division.
Growth will remain in line with average for Africa. It is expected to accelerate between 2017 and 2021, subject to investor confidence, up to 7.4%/year, which will push consumption up towards 2.8 million tonnes by 2021.