The industrial sector is an essential driving force in Africa’s economic development. Industry and industrial development are a prerequisite for sustained economic and societal growth. The transition from a resource-driven economy to an industrial economy is one of the key indicators of the shift from what is considered the traditional developing economy towards integration with the developed economy. Investment into the industrial sector is seen as a key priority for most, if not all, African countries.
Over the past 10 years, industrial activity has accounted for around 10% of Africa’s GDP. If the current trends continue, this should increase considerably in the next 10 years, meaning that the industrial sector should see a large amount of growth in the short, medium and long term.
Undoubtedly, there are challenges and issues for any developing economy. These include insufficient power supply, too few suppliers within countries, and poor infrastructure. While these challenges may make it difficult for investors to lay down operations, industrial policy stimulating manufacturing production will create opportunities for vast wealth creation.
We understand the challenges that face industrial operations in Africa and are well-qualified to provide expert advice to our clients in this sector.
Our experience includes providing counsel on major disposals, acquisitions and other M&A activity. We have recently provided investment advice to a large manufacturer of plastics and plastic packaging products which has operations in Ethiopia, India, Kenya, Tanzania, Uganda and various holding companies in Mauritius. We also advised on the acquisition of a leading manufacturer of wire and cable solutions.
Our clients include major organisations in the automotive, chemical, construction materials, electrical, metals, mining and power generation equipment, packaging, paper, steel and other industrial manufacturing industries.