Africa shows renewed interest in food tech

6th March 2015

By: Mia Breytenbach

Creamer Media Deputy Editor: Features

  

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East and West African countries are enhancing legislation to ensure food security, thereby reinvesting in their agriculture and processing sectors. African food and beverage industries have, therefore, expressed a renewed interest in food processing and production technologies as well as related machinery, notes continental trade expo organiser Exhibition Management Services (EMS).

“African industries have an ongoing need to upgrade plants, systems, technologies and know-how for the processing of raw materials, food and beverage production, packaging, storage and transport and logistics,” says EMS MD John Thomson.

He adds that his company has been made increasingly aware of this development over the last couple of years. Africa’s Big Seven (AB7) is Africa’s biggest food and beverage exhibition, which provides an opportunity for industry stakeholders to find different technology options and food and beverage products used in other regions.

Thomson highlights that accessing the required and appropriate technology for food processing and production is a key challenge currently facing the industry. He notes that this challenge applies particularly to South Africa, but also to other sub-Saharan African countries, as much of the technology that the local industry uses is imported.

In light of this, EMS has partnered with Kölnmesse and Fiere di Parma – two of Europe’s exhibition giants – for this year’s AB7 event, which will take place at Gallagher Convention Centre in Midrand, Johannesburg, from June 21 to 23.

Kölnmesse and Fiere di Parma have committed to a partnership with the organisers of AB7 and are supported by two of Europe’s biggest food expo brands – Anuga FoodTec and Cibus Tec, which focus specifically on technology offerings.

“This partnership will support the aim of the organisers to increase its focus on technology and provide visitors with additional exposure to more diverse products and different suppliers,” says Thomson.

He adds that the expo aims to provide African visitors with the means to enhance and sustain production within their own countries and to promote the export of food and beverage products.

“The two European organisers have a long history of cooperating in joint projects to promote agribusiness worldwide,” Thomson points out, noting that, following success in China, Japan and Thailand, Anuga FoodTec and Cibus Tec plan to focus on promoting food technologies in African markets.

African Potential
“Africa is a growing market, with an expanding middle class that can provide new opportunities for international exhibitors,” Thomson highlights.

He emphasises that South Africa, as a key gateway to the sub-Saharan Africa market, has had significant economic growth in recent years, particularly after joining the Brazil, Russia, India, China and South Africa association, otherwise known as Brics, in 2010.

With a population exceeding 54-million, of which more than 60% are under the age of 30, South Africa has one of the highest growth rates in Africa. In addition, more than ten-million people can be classified as high-end consumers, says Thomson.

“Moreover, with the world’s fastest-growing population tipped to comprise 40% of the global total by 2030, Africa’s rising consumer market will be the current decade’s single-biggest business opportunity on the continent.”

This is why Thomson believes AB7 offers “an incomparable springboard” into the rest of Africa.

The Southern Africa region combines 14 countries comprising more than 150-million inhabitants. Further, several countries in Africa share an active free-trade agreement for goods under the ambit of structured internal trade organisation the Southern African Development Community, which represents 20% of the continent’s population and 75% of its gross domestic product (GDP).

Constituent Growth
AB7 represents seven specialist components dedicated to the food and beverage supply chain – from raw materials and ingredients to equipment, packaging and consumer products. Thomson highlights that the food, services and equipment sector known as Foodbiz Africa is one of the fastest-growing elements of the expo.

He notes that, owing to the increasing growth of ready-made meals and takeaway foods, this sector, which focuses on catering and hospitality, is ranked among the top of visitors’ list of interests. While 34.35% of visitors at the 2013 expo said Foodbiz was a priority sector, this number increased to 37.7% in 2014.

Another key focus sector of the African food and beverage industry is the Halaal Pavilion, says Thomson. He adds that, with global sales of Halaal products totalling $1.1-trillion last year, the Halaal sector is no longer regarded as a niche market. Thomson also cites a report from the Dubai Chamber of Commerce, which estimates that the global Halaal market will reach $1.6-trillion by 2018.

Africa shares this growth path, with a Halaal food market that was estimated at $160-billion in 2014.

“New Halaal foods and beverages are an ever-growing trend among Muslim communities worldwide, particularly those in the Middle East, North Africa, Southern Asia and South-East Asia,” says Thomson, noting that, in Africa, more than 40% of the population is Muslim, and Halaal products comprise 25% of the continent’s GDP.

However, he points out that AB7 visitors who express an interest in South African products have noted a lack of sufficient local offerings exhibited at the expo. “The international and African buyers remain in search of more South African-manufactured products and offerings,” Thomson concludes.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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