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Sub-Saharan Africa Seeks Affordable, High-quality Mining and Oilfield Water Treatment Chemicals

Direct linkages between suppliers and end users to prove mutually beneficial

FOR IMMEDIATE RELEASE

 
PRLog (Press Release) - Oct. 1, 2012 - CAPE TOWN – South Africa is currently the only country in Sub-Saharan Africa (SSA) with significant local manufacturing of water and wastewater treatment chemicals used in the mining and oilfields markets. In contrast, Nigeria, Angola, Botswana and Namibia rely on import of these chemicals.

New analysis from Frost & Sullivan, Sub-Saharan Africa Mining and Oilfield Water Treatment Chemicals Market, covers the demand for mining and oilfield water treatment chemicals in mining countries (Namibia, Botswana and South Africa) and oilfield countries (Nigeria and Angola). The compound annual growth rate (CAGR) for oilfield water treatment chemicals in Angola and Nigeria is forecast at 10.5 % over 2010- 2017, while the CAGR for water treatment chemicals in the mining sector in South Africa, Botswana and Namibia over the same period is projected at 3.8 %.

Mining and oil and gas markets constitute a sizeable proportion of the economies of several countries in SSA. These markets are major consumers of water and, in turn, produce large volumes of wastewater.

“Due to growing environmental awareness, companies are under pressure to ensure they operate in an environmentally friendly way,” noted Frost & Sullivan’s Chemical Materials & Food Research Analyst Tatenda Zingoni. “Increased scrutiny of the African operations of major multinational companies is expected to contribute to growth in the uptake of water and wastewater treatment chemicals.”

Across SSA, rising investment in water infrastructure is expected to enable increased demand for water treatment chemicals. At the same time, Mega Trends like infrastructure development, paralleled by overall economic development, are set to result in a heightened demand for water treatment chemicals.

However, a key problem for many countries in SSA is their dependence on imported raw materials for product manufacturing, as well as imported finished products. This exposes local manufacturers and end users to potential import-related supply chain bottlenecks.

“Direct linkages between suppliers of water and wastewater treatment chemical suppliers and end users, without relying on middle-men, can reduce the likely bottlenecks which could result from delays in the supply chain,” said Zingoni. “The direct link with suppliers enables end users to obtain treatment chemicals which are customised to be able to treat the water and wastewater used and discharged by the mines and oil wells.”

Linkages between local producers and distributors with international corporations will, moreover, enable access to well-developed technologies. Proximity to end users will also be important in order to provide effective support services.

“Price and quality will be the key considerations for end users in the SSA markets,” concluded Zingoni. “The provision of high-quality products and services at affordable prices will also help companies establish brand loyalty and capture market share.”

If you are interested in more information on this study, please send an e-mail with your contact details to Samantha James, Corporate Communications, at samantha.james@frost.com.

Sub-Saharan Africa Mining and Oilfield Water Treatment Chemicals Market is part of the Chemicals & Materials Growth Partnership Service programme, which also includes research in the following markets: Strategic Opportunities for the Biofuel Industry in Key Sub-Saharan African Countries and South African Market for Bio-renewable Chemicals. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
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Sub-Saharan Africa Mining and Oilfield Water Treatment Chemicals Market M78D-39

Contact:
Samantha James
Corporate Communications – Africa
P: +27 21 680 3574
F: +27 21 680 3296
E: samantha.james@frost.com

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Source:Frost & Sullivan
Country:South Africa
Industry:Environment, Business
Tags:frost sullivan, mining, water, chemicals, africa
Shortcut:prlog.org/11987849
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