Highlights on Africa’s packaging industry
Increasing investments in packaging in Africa will make small and medium-sized enterprises (SMEs) on the continent more competitive. From 14-17 November, the International Packaging Exhibition, All4Pack, and the International Trade Centre (ITC) joined forces to highlight the challenges and investment opportunities of the sector on the African continent.
For four days, the AfricaPack round tables by ITC gathered experts to discuss the following issues:
Access to technology and quality material
In Africa, SMEs face a number of operational challenges. Suppliers are forced to import quality materials from Europe or elsewhere. The acquisition of equipment and high technology remains financially inaccessible for many SMEs, not to mention that the skills required to use the equipment are still too often lacking at the local level.
In order to overcome this shortfall, the company “Général Emballage”, based in Algiers, has established a partnership with a local university to develop a curriculum specifically dedicated to packaging. ”Since 2013, we invest every year in the education of about 30 students. We offer them a two-year training, after which they are employed full-time by the company,” says Mr. Mohamed Bessa, Communications Director, Général Emballage.
As part of the collaboration between ITC, the Small Industries Development Organization (SIDO) in Tanzania, and the government of Finland, a packaging centre has been set up in Dar es Salaam. Through this centre, local SMEs will be able to access packaging materials at prices that are more competitive than those of the market. Opened last October, the centre will help SMEs to access local supermarkets as well as regional markets.
Women entrepreneurship
There is a growing participation of women in the packaging industry, both as entrepreneurs and as employees. In Africa, many women focus on the issues of quality.
“Women entrepreneurs are particularly firm and demanding in their work. Their entrepreneurial spirit is highly developed. Quality is something that demands the respect of a large number of requirements and women are easily integrated into this approach” explains Perlive Rahaga Rabenitany from the Cabinet l’Action, Madagascar.
The packaging industry offers a wide range of possibilities for women. An evaluation is therefore fundamental to encourage their participation at all levels of the sector. Early exposure, mentoring and first-hand knowledge about the industry can arouse interest, and consequently pave the way for women towards careers in the manufacturing industry.
E-commerce and packaging
Entry authorizations for products into markets are much more complex for SMEs than for multinationals. This is particularly due to the fact that containers are comprised of a variety of products from various origins. The challenge is to ensure that all goods are accompanied by the appropriate documentation in accordance with customs requirements.
African companies need to pay more attention to the brand or visual identity of products in order to become more competitive on e-commerce platforms. Often, goods are perceived simply as commodities, whereas presentation is a key asset to raise awareness. As for labelling, mandatory details such as nutritional information or the lifetime of the product are often missing.
Finally, the capacity of African craft enterprises to secure international payments remains weak. These enterprises are not always able to identify international bank accounts or do not have credit cards, thus leading to some online sales platforms deny them the possibility to register both their company and their products.
E-commerce platforms have high potential for African SMEs that could allow them to penetrate international markets. However, more needs to be done to help SMEs meet the logistical, financial and traceability requirements of this niche.