433369666-The-Case-for-Investing-in-South-Africa

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CHEMICALS AND CHEMICAL PRODUCTS
INDUSTRIES: INVESTMENT OPPORTUNITIES
Basic chemicals
• There are opportunities in the manufacturing
of fertilisers and nitrogen compounds linked
to the food production value chain, owing
to higher farming production yields to meet
growing demand for food.
• Investment opportunities exist in the
plastics (polymers) sub-sector, on the back
of domestic demand for polyethylenes,
particularly those used in packaging, bags
and other injection moulding applications.
• Increasing liquid fuels energy security
presents opportunities.
SELECT OPPORTUNITIES IN
BASIC CHEMICALS PRODUCTION
• Polypropylene and polyvinyl chloride beneficiation
• Composite materials, including bio-composites
• Fluorspar beneficiation
• Titanium oxide pigments
• Organic fertilisers
• Speciality and fine chemicals
• Primary polyacetals/polyethers
• Nitrites and nitrates
• Potassic mineral or chemical fertilisers
Chemical products
• Import replacement opportunities abound, including in the production of automotive coatings; organic
surface active agents; prepared binders for foundry moulds or cores; peptones and proteins.
• Macro-trends towards increased production yields on less farming land are expected to expand
opportunities for agro-chemicals and pesticides manufacturers.
• There are opportunities associated with growing demand for paints and coatings (including automotive
coatings) on the back of public sector procurement; expanding vehicle production supported by the
APDP; and export potential in African and Middle Eastern markets.
• Emerging opportunities exist in the manufacture of organic personal care products.
Pharmaceuticals
• South Africa is the only country in SADC that meets the World Health Organisation’s Good Manufacturing
Practice standards, thus positioning it as the regional manufacturing hub for pharmaceutical products.
A new industry regulator – the South African Health Products Regulatory Authority – aims to accelerate
product approval times, unlocking R&D investment opportunities.
• Trends towards healthier lifestyles, rising disposable household income and increased access to
innovative products are driving the growth and expansion of the domestic pharmaceuticals value chain.
The introduction of the National Health Insurance scheme will be a key influencing factor in unlocking
growth opportunities for locally-based manufacturers of pharmaceutical products.
• Developing the active pharmaceutical ingredient manufacturing industry, expanding vaccine production
and the establishment of production capacity for radiopharmaceuticals for nuclear imaging are specific
investment opportunities.
• New technologies and the emergence of alternative healing methods are creating niche opportunities
in the pharmaceuticals industry, while next-generation digital technologies are boosting both research
capacity and healthcare delivery, creating investment opportunities in the process.
• Telemedical applications are expected to play an increasing role in the country’s remote areas,
generating manufacturing investment opportunities.
• New drug approvals are increasingly shifting from chemicals- to biological-based drugs, or biotherapeutics.
The latter entails the manufacturing of pharmaceutical drugs from a living (organic) system
such as micro-organisms, plants or animal cells. The global proliferation of these products presents a
potential high growth opportunity for manufacturing investment in South Africa.