Hot-off-the-press: in 2018, the total African AC market for the continent grew by 4 per cent in volume from 2017. The market is forecast to grow at around 5.5 per cent CAGR between 2017-2023 by volume, which exceeds the global forecast of 4.9 per cent for the same period. This is according to the first ever African air conditioning study released by BSRIA.
The countries with the strongest growth forecast are: Ghana, Kenya, Nigeria and Tanzania.
The main drivers are: growth in population, better performing economies, more stable governments, new construction, urbanisation and rising disposable income.
There are still a myriad of challenges faced by the countries in the region, including a recovering economy in Egypt with strong growth in construction and a planned new capital city; economic stagnation in the run-up to the passing of the “Expropriation Bill” in South Africa; shortage of foreign currency in Ethiopia and economic reforms in Tanzania restricting imports, as well as tough economic conditions challenging the growth of the Tunisian AC market.
Many African countries are looking to “diversify and develop” their economies. This should help them to cope with “the storms of global trade wars and protectionism” which currently threatens the world.
Saziye Dickson, Research Manager – Air Conditioning, Ventilation & Refrigeration, Worldwide Market Intelligence, BSRIA, said:
“In spite of its political uncertainty and economic challenges, the continent continues to attract investors’ attention, especially from China. Chinese interest is evident with Chinese AC manufacturers accounting for a significant market share in 2018, followed by the South Korean players.
The main reason behind the growing interest in the region is its strong economic growth. According to the latest Oxford Economics forecast, GDP growth for Africa is set to outstrip that of any other world region from 2012 to 2030. This is driven by rapid economic and population growth, resulting in faster urbanisation than any other continent over this period.