The fast pace of infrastructural development is growing the market for thermoset resins in both South Africa and Kenya.

According to a new analysis from Frost & Sullivan, Analysis of the Thermoset Resins Market in South Africa and Kenya, the paints and coatings, construction chemicals and composites markets have seen a boom owing to government investment in low-cost housing, roads and other non-domestic structures. These markets, in turn, have raised the demand for thermoset resins.

After the thermoset resins market earned combined revenues of $280.8 million in 2013, it is estimated to reach $339.4 million in 2017. South Africa accounted for 97.5% of the total sales.South Africa has adequate resources to supply nearly 90% of its thermoset resins demand domestically. Its local refineries are the most efficient in Africa, with an average utilisation capacity of 85%. Although this insulates the market from import price fluctuations, the country’s escalating production costs are exposing it to competition from cheap imports.

“Although South Africa’s economic growth has slowed, a $360 billion government infrastructural development plan is likely to keep its thermoset resins market afloat till 2030,” says Frost & Sullivan Chemicals, Materials & Food Industry Analyst Dilshaad Booley. “The growth rate in Kenya is expected to be much higher, as the country is sorely lacking in modern infrastructure and is aggressively pursuing its development goals in line with its vision of becoming a middle-income nation by 2030.”

Kenya, unlike South Africa, imports almost all of its thermoset resins and is vulnerable to constant currency volatility and high transport costs. However, this is being remedied by the government’s investment into the sector.

Lowering prices

According to the report, Kenya can lower the prices of thermoset resins and increase local manufacturing through proper maintenance and better infrastructure. In South Africa, overcoming soaring energy costs is key to making locally produced products price competitive with imports. Local content policies in both countries will also aid the usage of thermoset resins in their respective domestic markets.