There is an unmet and growing demand for packaging products in Ethiopia, according to a recent study by Manufacturing Africa, a programme funded by the UK’s Foreign, Commonwealth & Development Office (FCDO) that supports investment into the manufacturing sector.

Ethiopia will have a packaging manufacturing opportunity worth $971 million by 2030, with more than 50% of the potential lying in packaging for the food and beverage sectors. About 20% of packaging is imported in the country, which is highly inefficient for consumer goods companies. Opportunities exist across Ethiopia’s packaging value chain, particularly in manufacturing of paper/plastic intermediate inputs and recycling.

Ethiopia’s manufacturing output doubled in over the past five years and is expected to expand at 13% annually. The fast-growing agro-processing industry is a major consumer of packaging.

The food and drinks sector collectively represent about half of total demand for packaging (about $333 million of $649 million).

There are an estimated 59 companies producing packaging in Ethiopia, focusing mainly on paper and plastics.

Investment opportunities

The study highlights the following 12 investment opportunities in Ethiopia’s packaging sector:

1. Secure supply of PET bottles to domestic market – opportunity ranging from blow-moulding to end-to-end production

  • Market opportunity by 2030: $95 million
  • Investment required: $20 million

2. Secure supply of flexible plastic packaging

  • Market opportunity by 2030: $200 million
  • Investment required: $35 million

3. Set up cutting plant for tubes for toothpaste

  • Market opportunity by 2030: $8 million
  • Investment required: TBD

4. Incentivise production of bio-plastics from sugar cane to reduce environmental impact of plastic use

  • Market opportunity by 2030: <$120 million
  • Investment required: TBD

5. Boost production of recycled plastic to replace imports for local producers to use as feedstock or for gasification (fuel)

  • Market opportunity by 2030: $30 million
  • Investment required: $25 million

6. Recycle PET plastic to converted polyester fibre for textile sector

  • Market opportunity by 2030: $30-40 million
  • Investment required: $75-90 million

7. Set up liquid carton converting hub

  • Market opportunity by 2030: $140 million
  • Investment required: TBD

8. Set up supply of forest-certified bamboo wood pulp for paper packaging producers

  • Market opportunity by 2030: export
  • Investment required: Up to $2 billion

9. Development of local production of corrugated paper – opportunity ranging from local cutting of imported corrugated paper, to boost of end-to-end production

  • Market opportunity by 2030: $70 million
  • Investment required: $38 million

10. Boost paper recycling to replace imports for local producers to use as feedstock

  • Market opportunity by 2030: $40 million
  • Investment required: $10-20 million

11. Increase metal cans production for food and beverage segment

  • Market opportunity by 2030: $70 million
  • Investment required: $25 million

12. Increase glass packaging production for beverages

  • Market opportunity by 2030: $70 million
  • Investment required: $120 million

Original Link at How We Made It in Africa

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The opinions expresses here in the post "12 Investment Opportunities in Ethiopia’s Packaging Industry" are those of the individua's contributor(s) and do not necessarily reflect the views of Business Info Ethiopia , BIE Intelligence PLC, its publisher, editor, or any of its other contributors.

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