Publications
Partners
Johannesburg - West African demand for South African chemicals is on the rise as oil- and gas-rich fields in the region are fuelling developmental ambitions, according to a shipping agent.
"The chemicals industry is in an excellent position to satisfy growing West African demand for a wide spectrum of chemical products", said Haakon Røstad, MD of Universal Africa Lines-South Africa (UAL-SA).
UAL - which ships freight from the United States, Europe, South America and South Africa - has seen an uptick in the demand for drilling cement and fluids, lubricants, greases and mine grits, used to clean industrial equipment.
"Another product, bitumen, is one of the fastest-growing export chemicals. It is used for tarring roads in growing African economies - we ship 30 containers per month on average," Røstad said.
He explained there is a growing insistence in Africa on doing trade with other African states. As Africa's biggest and most technologically advanced economy, South Africa is the most important export hub feeding Africa.
SA must seize the moment
"As a result, the SA chemicals industry is on the cusp of a momentous African opportunity, which it must grasp while it is in its infancy," Røstad said.
In a related development, local diversified chemicals group Omnia earlier this week announced it was eyeing acquisitions outside South Africa, with the aim of expanding its footprint in Africa.
Commenting on this, Frost & Sullivan chemicals analyst Kholofelo Maele said: "The group should continue to increase its presence in the rest of Africa and globally."
While the firm has given no indication of supplying chemicals into West Africa, it has shown continued interest in East, Central and southern African territories.
Some South African-based companies with operations in West Africa, specifically in the exploration of oil and gas or chemical-related industries, include SacOil, Sasol, AECI (for its explosive unit, AEL) and Afrox.
- Fin24.com
