Kenya - wesgro.co.za Kenya Consumer goods.pdf · 5 Euromonitor International expects the...
Transcript of Kenya - wesgro.co.za Kenya Consumer goods.pdf · 5 Euromonitor International expects the...
Kenya Consumer Goods (Personal care and Home care)
Executive Summary
This sector fact sheet provides key trade and investment related statistics for the Kenyan consumer goods sector,
particularly the personal and home care products segment. Specifically, it shows global trade and investment flows
including an analysis of top markets and products for South Africa and the Western Cape, highlighting the largest
and fastest growing products and sub-sectors. The key highlights in the consumer goods sector are provided below:
TRADE:
Despite having manufacturers in the country catering for this segment of consumer goods, demand has
continually outstripped supply leading to continual trade deficits.
Increasing its exports by 18%, South Africa was the fifth largest import market commanding close to 8%
market share and second only to Egypt within Africa.
If Kenyan import demand continues on this trend, the East African nation can prove to be a viable market
for South African exports.
In 2013 the Kenyan market once again increased its demand for South African made personal and
homecare products as exports to the East African nation increased by 32%.
South Africa’s leading export to Kenya was beauty, makeup and suntan preparations valued at
ZAR34.7m, exports of this good also increased by 29% from 2013.
After going through a years of successive export decline, Western Cape exports to Kenya rebounded in
2011. 2013 gave encouraging signs of recovery with exports expanding by 34%.
The anticipated growth in the Kenyan economy and the rate of urbanisation, gives scope for the province
to expand its product offering.
INVESTMENT:
Thus far one investment from the Western Cape has been recorded into Kenya by Woolworths in 2014.
This investment worth ZAR432.4m was part of Woolworths plans to expand its retail footprint in Kenya
and in Africa.
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Table of Contents
Executive Summary ................................................................................................................................ 1
1. Product Description ......................................................................................................................... 3
2. African Market ................................................................................................................................. 3
3. Kenya Consumer Goods Market ..................................................................................................... 4
4. Trade ............................................................................................................................................... 6
4.1 Kenya global trade in consumer goods ................................................................................... 6
4.2 South African trade of Consumer goods with Kenya .............................................................. 9
4.3 Western Cape Trade of consumer goods with Kenya .......................................................... 11
5. FDI ................................................................................................................................................. 12
5.1 Inward FDI ............................................................................................................................. 12
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1. Product Description
The global consumer goods industry consists of any tangible commodity purchased by households to satisfy their
wants and needs. Consumer goods may be durable or non-durable. Durable goods (e.g., autos, furniture, and
appliances) have a significant life span, often defined as three years or more, and consumption is spread over this
span. Non-durable goods are purchased for immediate or almost immediate consumption and have a life span
ranging from minutes to three years. Examples of non-durable goods include food, clothing, and gasoline.
This factsheet will focus on the personal care products and homecare products
Personal Care Products: This segment includes shampoo, toothpaste, soap, deodorants, and make-up.
Homecare Products: This segment includes household cleaners and kitchenware.
2. African Market The consumer goods sector is rapidly growing within Africa, its growth potential lies not just in the expanding middle
class but also in Africa’s overall population growth. Africa’s collective population is estimated at around 1 billion
people at present, and it is expected to grow rapidly to 1.4 billion by 2025, where China is currently. According to
data from the Population Reference Bureau, Africa is a young continent with around 41% of the total population
under the age of 15 years. In addition, Africa is becoming increasingly urbanised. According to an Africa Progress
report (2010) by consulting group Frost & Sullivan, African city populations will increase by 25% by 2025, while by
2050, 60% of Africa’s population will reside in urban areas. Urbanisation is linked to an increased demand for fast
moving consumer goods (FMCG), in which the personal and homecare products segment belongs to.
The figure below shows Africa’s top 10 retail companies with Shoprite holdings securing 1st place with USD9.87bn.
The companies are all headquartered in South Africa.
Source: The Habari Network, 2015
Several analysts have compared the African potential for FMCG favourably to the Indian potential. Both are huge,
emerging consumer markets, but unlike India, Africa has 55 countries, and that means around 55 different rules,
regulations and border controls to consider when moving FMCGs. This is one of the biggest barriers FMCGs
companies will need to overcome to maximise growth on the continent. Despite these issues, the future looks bright
for FMCG on the continent as the number of consumers and their expendable income continues to rise in the
coming decades.
1,9
1,9
2,7
3
3,1
3,4
5,1
7
7,2
9,87
0 2 4 6 8 10 12
Clicks Group
Foschini
Masscash
JD Group
Edgars Consolidated Stores
Woolworths holding Limited
The Spar Group
Pick n Pay
Massmart Holdings
Shoprite holdings
AFRICA'S TOP 10 RETAIL COMPANIES, USDbn
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3. Kenya Consumer Goods Market
The prosperous middle class has contributed to rising demand in recent years which is not being met locally. GDP
growth is around 6% and is likely to climb to 7% in the forecasted future. Moreover, the strong regional integration
among the East African states provides even more potential for the sector due to access to larger markets.
Investment opportunities include construction of 10 wholesale markets with a total investment of USD49m;
investment in infrastructure, export houses, distribution centres, etc.
COMPANIES IN KENYA’S PERSONAL & HOME CARE MARKET
INVESTING COMPANY SOURCE COUNTRY
(IF SUBSIDIARY) SUB-SECTOR BRANDS
Unilever Kenya Ltd. United Kingdom FMCG Omo, Geisha, Lux, Sunlight, Vaseline, Lady gay, Fair & Lovely, Lifebouy and Close up.
PZ Cussons East Africa Ltd.
United Kingdom FMCG Imperial Leather Soap, Ushindi Laundry Soap, Venus Haircare, Robb Medicaments
Procter & Gamble United States FMCG Pampers, Ariel, Always, Oral-B, Gillette, Safeguard
Weidner East Africa ltd Germany Home care products Weidner
Eveready East Africa Ltd. United States of America
Personal care Schick
Colgate-Palmolive East Africa
United States FMCG Colgate, Palmolive, Ajax, Sta-soft, Speed stick, Sanex
Glaxo-SmithKline United States Pharna Sensodyne, Aquafresh, Biotene, parodontax, physiogel
Reckitt Benckiser United Kingdom FMCG Harpic, Veet, Clearosil, Woolite,Dettol, Vanish
SC Johnson United States FMCG Duck, Glade, Grand Prix, Kiwi, Mr. Muscle, Windex
Kapa Oil Refineries Kenya FMCG Limo, Tower, Toss white,
Bidco Africa Kenya FMCG Power Boy, Msafi white, Gental Washing powder, Nuru, Kuku, White Star, Msafi
Kronex Chemicals Ltd. Kenya FMCG Basil Dish Washing Liquid, Basil toilet soap,
Haco Industries South Africa FMCG ACE, miada, Bloo, Sosoft
Buyline Industries Ltd. Kenya Personal Care Luron, King of hearts, Cobra, Bigen, Maws
Interconsumer Products Kenya
Kenya Personal Care Golden Shine, Snodent, Bouncy, All-Tyme
Source: Euromonitor, Various, 2015
Unilever Kenya is the market leader in the personal care industry. The company has been present in Kenya for a
long time, and has established a strong distribution network. In the oral care market, Unilever (Close Up) faces
competition from Colgate-Palmolive East Africa (Colgate) and GlaxoSmithKline Kenya Limited (Aquafresh).
Throughout the Middle East and African region, Colgate is the number one brand for toothpaste and toothbrushes,
and the second most popular brand for mouthwash. Meanwhile, Procter & Gamble (P&G) is looking to grow its oral
care market share in the region, and recently launched its Oral-B toothbrush. As incomes rise and the proportion
spent on food declines, there is a strong growth expected in the oral care sector.
The homecare segment stands to benefit from the current boom in construction activities taking place across the
country, as it will increase the need for specialised cleaning products. According to Euromonitor (2015) two strong
multinationals led sales of home care in 2014, namely Unilever and Proctor & Gamble. These players benefit from
heavy investment in marketing and new product development and compete aggressively. Behind these leaders
are multinationals SC Johnson and PZ Cussons, with the leading domestic player being Kapa Oil Refineries in fifth
place. In the toilet care category, Reckitt Benckiser is the market leader thanks to its popular Harpic brand.
Tiger Brands, a well-known South African player in the food and beverages sector (South Africa), has recently
acquired a 51% stake in Haco Industries, which produces stationery, home and personal-care products such as
ACE and MIADI in Kenya (Financial Mail, 2015). Another South African company Distribution & Warehousing
Network (Dawn) is expected to open an office in Nairobi to distribute its branded hardware, sanitary ware, plumbing,
kitchen, engineering and other products after an initial investment of US$1m. Retailer Massmart, whose intention
to buy a stake in retailer Naivas Supermarket failed last year because of a due diligence failure on the part of the
Kenyan chain, however Massmart say they are still interested in entering Kenya and may open their own branded
outlets (Financial Mail, 2015).
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Euromonitor International expects the introduction of new fragrances in the toilet care market to boost sales in the
near future. Meanwhile, air care products have traditionally not sold well in Kenya, as they are not considered a
necessity. However, this is slowly starting to change, and sales have picked up of late as their use in commercial
buildings has increased. Unilever is the clear market leader, with the company accounting for around half of all
sales in value terms. The company’s Omo and Sunlight brands are well established and Unilever can capitalise on
its strong distribution network that have been built over a number of years. According to research by Euromonitor
International, strong growth is expected for this category on the back of increased innovation and brand
diversification, as well as the ongoing switch from bar format cleaning products to liquid forms.
Increased competition in the beauty and personal care market spurred growth during 2014. Availability of a variety
of products for consumers to choose from, accessibility through growth in retail outlets and high end advertising
adopted by industry players, are key factors that promoted growth in this market according to Euromonitor (2015).
Value growth, however, is slightly lower than it was during the review period, as whilst consumers are spending,
they are being more cautious with their spending during times of financial pressure.
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4. Trade
4.1 Kenya global trade in consumer goods
For the past 10 years, Kenya has been a net importer of personal and homecare products. Despite having
manufacturers in the country catering for this segment of consumer goods, demand has continually outstripped
supply leading to the continual trade deficits. Imports in 2013 once again demonstrated Kenya’s demand for
personal and homecare goods growing by 25% resulting in Kenya’s largest trade deficit in recent times.
Source: TradeMap, 2015
Kenya’s top export markets were fellow African countries and direct neighbours. Uganda (ZAR259.6m), Tanzania
(ZAR203.4m) and Zimbabwe (ZAR132.7m) were Kenya’s largest export markets. These three nations imported
65% of Kenya’s exports of personal and homecare goods.
Egypt (ZAR296.5m) was Kenya’s largest personal and homecare import market. The second largest import market,
China (ZAR195.9m) commanded 16% of Kenya’s personal care and homecare imports, followed by India
(ZAR110.8m) with 9%. Increasing its exports by 18%, South Africa was the fifth largest import market commanding
close to 8% market share, second only to Egypt within Africa.
TOP 10 DESTINATION MARKETS FOR EXPORTS OF CONSUMER GOODS FROM KENYA , 2013
TOP 10 SOURCE MARKETS FOR IMPORTS OF CONSUMER GOODS TO KENYA, 2013
RANK DESTINATION
MARKET
VALUE 2013
(ZARm)
% GROWTH 2012-2013
% SHARE
2013 RANK SOURCE MARKET
VALUE 2013
(ZARm)
% GROWTH 2012-2013
% SHARE
2013
1 Uganda 259.6 34.79% 28.15% 1 Egypt 296.5 -0.55% 23.90%
2 Tanzania 203.4 11.38% 22.05% 2 China 195.9 76.25% 15.79%
3 Zimbabwe 132.7 6.51% 14.39% 3 India 110.8 41.88% 8.94%
4 Zambia 100.9 10.83% 10.94% 4 Indonesia 97.8 55.52% 7.88%
5 Malawi 70.6 -3.17% 7.66% 5 South Africa 97.6 18.42% 7.87%
6 Rwanda 61.0 -3.38% 6.62% 6 United Kingdom 68.6 20.87% 5.53%
7 Ethiopia 41.5 -22.34% 4.50% 7 United States 52.3 41.87% 4.21%
8 Burundi 22.5 80.25% 2.43% 8 Germany 48.4 40.15% 3.90%
9 Mozambique 7.23 345.54% 0.79% 9 France 35.8 -1.72% 2.89%
10 Mauritius 6.7 37.89% 0.73% 10 Tanzania 32.7 4.29% 2.64%
TOTAL EXPORTS 922.3 13.08% 100.00% TOTAL IMPORTS 1 240.4 25.42% 100.00%
Source: TradeMap, 2015
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Exports (ZARm) 160,8 258,5 254,4 267,2 482,9 506,9 501,9 713,3 815,6 922,3
Imports (ZARm) 221,3 316,8 308,2 493,2 605,3 562,7 800,5 809,1 989,0 1 240,4
Trade Balance (ZARm) -60,5 -58,3 -53,8 -226,0 -122,4 -55,8 -298,6 -95,8 -173,4 -318,1
-400
-200
0
200
400
600
800
1 000
1 200
1 400
Valu
e (
ZA
Rm
)
KENYA GLOBAL TRADE OF CONSUMER GOODS, 2004-2013
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The top exported consumer products by Kenya to the top destination markets are listed below:
Uganda (HS6)
Surface-active prep, washing & cleaning prep put up for retail sale (ZAR77m)
Toilet soap & prep, shaped; papers & nonwovens impregnated with soap for toilet use (ZAR60m)
Tableware and kitchenware of plastics (ZAR32m)
Household and toilet articles made of plastic (ZAR31m)
Beauty or make-up preparations nes; sunscreen or sun tan preparations (ZAR26.5m)
Tanzania (HS6)
Toilet soap & prep, shaped; papers & nonwovens impregnated with soap for toilet use (ZAR107m)
Surface-active prep, washing & cleaning prep put up for retail sale (ZAR69m)
Soap & organic surf prep, shaped, nes; papers & nonwovens impregnated with soap/preparations,
nes (ZAR63m)
Beauty or make-up preparations nes; sunscreen or sun tan preparations (ZAR36m)
Hair preparations, nes (ZAR24m)
Zimbabwe (HS6)
Surface-active prep, washing & cleaning prep put up for retail sale (ZAR37m)
Toilet soap & prep, shaped; papers & nonwovens impregnated with soap for toilet use ZAR37m)
soap, nes (ZAR24m)
Beauty or make-up preparations nes; sunscreen or sun tan preparations (ZAR3m)
Other surface-active prep, washing & cleaning prep (ZAR2m)
Zambia (HS6)
Polishes, creams & similar preparations for footwear or leather (ZAR26m)
soap, nes (ZAR20m)
Toilet soap & prep, shaped; papers & nonwovens impregnated with soap for toilet use (ZAR18m)
Surface-active prep, washing & cleaning prep put up for retail sale (ZAR17m)
Anionic surface-active agents (ZAR8m)
The top imported consumer products by Kenya from the top source markets are listed below:
Egypt (HS6)
Surface-active preparations, washing and cleaning preparations, nes (ZAR329m)
Toilet soap & prep, shaped; papers & nonwovens impregnated with soap for toilet use (ZAR108m)
Room perfuming or deodorizing preparations (ZAR2m)
Tableware and kitchenware of plastics (ZAR1m)
Dentifrices (ZAR1m)
China (HS6)
Tableware and kitchenware of plastics (ZAR22m)
Anionic surface-active agents (ZAR17m)
Household and toilet articles nes, of plastics (ZAR14m)
Dentifrices (ZAR12m)
Polishes, creams & similar preparations for footwear or leather (ZAR3m)
India (HS6)
Beauty or make-up preparations nes; sunscreen or sun tan preparations (ZAR15m)
Dentifrices (ZAR14m)
Anionic surface-active agents (ZAR12m)
Tableware and kitchenware of plastics (ZAR5m)
Surface-active preparations, washing and cleaning preparations, nes (ZAR5m)
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Indonesia (HS6)
Non-ionic surface active agents (ZAR2m)
Polishes, creams & similar preparations for footwear or leather (ZAR1m)
Beauty or make-up preparations nes; sunscreen or sun tan preparations (ZAR1m)
Powders for skin care (ZAR1m)
South Africa (HS6)
Beauty or make-up preparations nes; sunscreen or sun tan preparations (ZAR21m)
Hair preparations, nes (ZAR19m)
Personal deodorant and antiperspirant (ZAR7m)
Other oral or dental hygiene (ZZAR5m)
Toilet soap & prep, shaped; papers & nonwovens impregnated with soap for toilet use (ZAR4m)
Kenya’s largest export of personal and homecare products were surface-active preparations to the value of
ZAR295.2m. Toilet soap (ZAR162.9m) and polishes, creams & similar preparations for footwear or leather
(ZAR90.8m) were the second and third largest exports from Kenya. Compared to Nigeria, which is another fast
growing African nation, Kenya already has personal and homecare product manufacturers active in this economy.
Therefore it is able to export a range of goods to surrounding countries.
The leading import product by Kenya was surface-active preparations, valued at ZAR275.3m. Imports of this good
were less than its exports (ranked 1st), however these imports grew faster compared to exports. Dentifrices,
(ZAR122.6m) and toilet soap (ZAR119.1m); were ranked second and third, respectively. Barring the benign
growth seen in soap & organic surf preparations, most of Kenya’s top import products experienced growth in
excess of 19%. If import demand continues on this trend, Kenya can prove to be a viable market for South African
exports and they could also use Kenya as a testing ground for exploring the other surround markets in East Africa.
KENYA'S GLOBAL TOP EXPORTS OF CONSUMER GOODS, 2013 KENYA'S GLOBAL TOP IMPORTS OF CONSUMER GOODS, 2013
RANK PRODUCT VALUE
2013 (ZARm)
% GROWTH 2012-2013
RANK PRODUCT VALUE
2013 (ZARm)
% GROWTH 2012-2013
1 Surface-active prep, washing & cleaning prep put up for retail sale
295.2 41.42% 1 Surface-active prep, washing & cleaning prep put up for retail sale
275.3 117.27%
2 Toilet soap & preparations, shaped; papers & nonwovens impregnated with soap for toilet use
162.9 15.02% 2 Dentifrices 122.6 41.30%
3 Polishes, creams & similar preparations for footwear or leather
90.8 39.99% 3 Toilet soap & preparations, shaped; papers & nonwovens impregnated with soap for toilet use
119.1 21.79%
4 Soap 73.4 -42.72% 4 Beauty or make-up preparations nes; sunscreen or sun tan preparations
106.2 40.53%
5 Soap & organic surface prep, shaped, nes; papers & nonwovens impregnated with soap/prep, nes
62.9 -15.12% 5 Tableware and kitchenware of plastics
75.5 32.20%
6 Beauty or make-up preparations nes; sunscreen or sun tan preparations
60.6 111.56% 6 Perfumes and toilet waters 64.8 19.09%
7 Surface-active preparations, washing and cleaning preparations, nes
29.3 88.80% 7 Anionic surface-active agents 55.9 39.39%
8 Tableware and kitchenware of plastics 25.3 -8.02% 8 Household and toilet articles, of plastics
48.0 181.92%
9 Hair preparations, nes 25.3 16.93% 9 Soap & organic surface prep, shaped, nes; papers & nonwovens impregnated with soap/prep, nes
40.7 3.49%
10 Household and toilet articles nes, of plastics
20.3 4.66% 10 Personal deodorants & antiperspirants
35.9 94.46%
TOTAL EXPORTS 922.3 13.08% TOTAL IMPORTS 1240.4 25.42%
Source: TradeMap, 2015
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4.2 South African trade of Consumer goods with Kenya
The figure below shows South Africa’s trade of personal and home care products with Kenya for the period 2005
to 2014. Trade between the two nations has been dominated by South African exports to Kenya resulting in
continuous trade surpluses for the 10 year period. In 2013 the Kenyan market once again increased its demand
for South African made personal and homecare products as exports to the East African nation increased by 32%.
This increase in exports combined with a minute level of imports pushed South Africa’s trade surplus to a record
level.
Source: Quantec, 2015
South Africa’s leading export to Kenya was beauty, makeup and suntan preparations valued at ZAR34.7m, exports
of this good also increased by 29%. A survey conducted by Kenyan businesswoman Suzie Wokabi (founder of
SuzieBeauty Cosmetics) showed that Kenyan women are willing to spend up to 20% of their salaries on beauty
products. Thus exports of beauty products should continue increasing for the foreseeable future. Soaps for toilet
use, (ZAR16m) was the second largest export to Kenya, it’s 253% growth displaced hair waving or straightening
preparations (ZAR14.4m) into 3rd position.
Accounting for 84% of South Africa’s imports, plastic table and kitchenware were the largest import from Kenya.
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Exports (ZARm) 41,4 61,4 60,7 89,6 80,6 87,6 79,3 75,5 90,7 119,5
Imports (ZARm) 30,9 0,6 6,0 17,3 0,1 0,4 1,3 1,5 0,9 1,3
Trade Balance (ZARm) 10,5 60,8 54,6 72,3 80,5 87,2 78,0 74,1 89,9 118,2
0
20
40
60
80
100
120
Valu
e (
ZA
Rm
)
SOUTH AFRICA'S TRADE OF CONSUMER GOODS WITH KENYA, 2005-2014
10
TOP 10 CONSUMER GOODS EXPORTED BY SOUTH AFRICA TO KENYA, 2014
TOP 10 CONSUMER GOODS IMPORTED BY SOUTH AFRICA FROM KENYA, 2014
RANK HS
CODE PRODUCT
VALUE 2014 (ZAR)
% GROWTH 2013-2014
RANK HS
CODE PRODUCT
VALUE 2014 (ZAR)
% GROWTH 2013-2014
1 330499 Beauty, makeup and suntan preparations nes
34 715 711 28.74% 1 392410 Plastic table and kitchen ware
1 065 788 48.97%
2 340111 Soaps, for toilet use, solid
16 015 583 252.91% 2 392490 Plastic household, toilet articles not table, kitchen
164 237 -
3 330520 Hair waving or straightening preparations
14 388 356 -20.69% 3 340120 Soaps 14 099 28098.00%
4 330720 Personal deodorants and antiperspirants
7 344 583 -6.01% 4 330590 Hair preparations 11 546 18827.87%
5 392490 Plastic household, toilet articles not table, kitchen
5 733 178 5345.39% 5 330499 Beauty, makeup and suntan preparations nes
6 625 -49.25%
6 330690 Oral & dental hygiene preparations, except dentifrices
5 469 540 -17.92% 6 340130
Soap; organic surface-active products and preparations for use as soap, in the form of bars, cakes, moulded pieces or shapes, whether or not containing soap
2 584 -
7 330590 Hair preparations, nes
5 467 166 -7.27% 7 340319 Lubricating oil etc containing <70% petroleum oil nes
2 122 -88.45%
8 330491 Powders, for skin care and make-up
4 647 188 103.64% 8 330410 Lip make-up preparations 1 981 2.11%
9 340220 Washing and cleaning preparations, retail
4 477 376 109.74% 9 330430 Manicure or pedicure preparations
1 100 -
10 330610 Dentifrices 3 609 959 91.02% 10 340290 Organic surfactant washing, cleaning preparations nes
1 088 6.56%
TOTAL EXPORTS 119 511 815 31.70% TOTAL IMPORTS 1 276 115 48.85%
Source: Quantec, 2015
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4.3 Western Cape Trade of consumer goods with Kenya
In the period shown below, the province has been a net exporter of personal and homecare products to Kenya as
its exports have been far greater than its imports. The province’s trade follows a business cycle, after going through
years of successive export decline, exports rebounded in 2011 reaching their peak and then declined once again.
2013 gave encouraging signs of recovery with exports expanding by 34%.
Source: Quantec, 2015
As with national exports beauty, makeup and suntan preparations (ZAR1.8m) were the province’s largest export to
Kenya. Dentifrices (ZAR1.2m) were the second largest export followed by personal deodorants and antiperspirants
(ZAR521 501). These three products accounted for 93% of the Western Cape’s personal and homecare products
to Kenya. However with the anticipated growth in the Kenyan economy and the rate of urbanisation, there is
definitely scope to expand the product based beyond these three goods.
In terms of imports, plastic table and kitchen ware (ZAR2 587), hair preparations (ZAR2 546) and hair lacquers
(ZAR2 495) were the only significant imports.
TOP 10 CONSUMER GOODS EXPORTED BY THE WESTERN CAPE TO KENYA, 2013
TOP 10 CONSUMER GOODS IMPORTED BY WESTERN CAPE FROM KENYA, 2013
RANK HS
CODE PRODUCT
VALUE 2013 (ZAR)
% GROWTH 2012-2013
RANK HS
CODE PRODUCT
VALUE 2013 (ZAR)
% GROWTH 2012-2013
1 330499 Beauty, makeup and suntan preparations nes
1 777 169 510.53% 1 392410 Plastic table and kitchen ware
2 587 -
2 330610 Dentifrices 1 232 198 92.63% 2 330300 Perfumes and toilet waters 2 546 -
3 330720 Personal deodorants and antiperspirants
521 501 -64.80% 3 330499 Beauty, makeup and suntan preparations nes
2 495 -
4 340120 Soaps nes 46 981 75.13% 4 330741 Agarbatti, odorifers operated by burning
386 -
5 330730 Perfumed bath salts and other bath preparations
36 891 194.35% 5
6 330300 Perfumes and toilet waters
34 479 13.48% 6
7 330410 Lip make-up preparations
31 444 -7.64% 7
8 330710 Pre-shave, shaving and after shaving preparations
19 190 -3.37% 8
9 330510 Hair shampoos 16 799 - 9
10 330430 Manicure or pedicure preparations
15 422 -65.96% 10
TOTAL EXPORTS 3 798 028 33.59% TOTAL IMPORTS 8 014 1003.86%
Source: Quantec, 2015
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Export (ZAR) 4 763 126 5 562 896 4 390 341 3 370 615 2 501 247 2 357 289 3 361 651 5 795 032 2 842 964 3 798 028
Imports (ZAR) 6 911 6 728 4 160 3 427 31 21 533 13 719 1 360 726 8 014
Trade Balance (ZAR) 4 756 215 5 556 168 4 386 181 3 367 188 2 501 216 2 335 756 3 347 932 5 793 672 2 842 238 3 790 014
0
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
Valu
e (
ZA
R)
WESTERN CAPE TRADE OF CONSUMER GOODS WITH KENYA, 2004-2013
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5. FDI
5.1 Inward FDI
Between January 2004 and November 2014 a total of 10 FDI projects were recorded into Kenya’s consumer goods
sector. These projects represent a total capital investment of ZAR3.7bn which is an average investment of
ZAR372.2m per project. During the period, a total of 2,670 jobs were created. Thus far one investment from the
Western Cape has been recorded into Kenya by Woolworths in 2014. This investment worth ZAR432.4m was part
of Woolworth plans to expand its retail footprint in Kenya and in Africa.
INWARD FDI INTO KENYA'S CONSUMER GOODS SECTOR, 2004-2014
DATE INVESTING COMPANY
SOURCE COUNTRY
SUB-SECTOR CLUSTER INDUSTRY ACTIVITY
CAPEX (ZARm)
JOBS CREATED
Jun-14 Bigot Fleurs France Other (Consumer Products )
Consumer Goods Manufacturing 59.8 200
Apr-14 Woolworths (South Africa)
South Africa Miscellaneous store retailers
Retail Trade Retail 432.4 179
Oct-13 Unilever UK Other (Consumer Products )
Consumer Goods Manufacturing 2 406.3 1693
May-13 EcoZoom United States Furniture, homeware & related products (Consumer Products)
Consumer Goods Sales, Marketing & Support
51.6
18
Sep-12 Grohe Germany Furniture, homeware & related products (Consumer Products)
Consumer Goods Sales, Marketing & Support
51.6
18
Jun-12 3M United States Other (Consumer Products )
Consumer Goods Sales, Marketing & Support
51.6
18
Dec-11 L'Oreal France Cosmetics, perfume, personal care & household products
Consumer Goods Sales, Marketing & Support
51.6
18
May-11 Dabur India India Cosmetics, perfume, personal care & household products
Consumer Goods Manufacturing
191.0 243
Jan-10 Cilek Turkey Furniture, homeware & related products (Consumer Products)
Consumer Goods Sales, Marketing & Support
51.6
18
Nov-08 Oriflame Sweden Cosmetics, perfume, personal care & household products
Consumer Goods Logistics, Distribution & Transportation
374.9
265
Source: FDI Intelligence, 2015
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