As Angola's buyers seek a local can manufacturer in response to government plans for an import duty on the industry, so Nampak has decided to target a 100% market share in the country.
- Read our recent article about Nampak's appointment of a new CFO, Glenn Fullerton, here.
Nampak, the only can producer with operations in Angola, currently supplies 56% of the country's market. Imports comprise the balance. Company CEO, Andre de Ruyter, based in the Johannesburg office, said Nampak will likely see that market share increase as customers attempt to source cans locally and avoid the import duty.
Nampak entered Angola in 2011 and, following the commissioning of a second production line in May, now has the capacity to produce 1.8 billion cans a year. The CEO has said the company will consider adding a third line, depending on how the economy develops. It has also considered building a glass-bottle production facility in the country.
With crude prices below $50 a barrel, and given that the commodity accounted for the bulk of government revenue in 2014, as well as almost all export earnings, the Angolan economy is struggling. The kwanza has weakened to a record low following the central bank's devaluation of the currency since June. In July the central bank lowered its economic growth forecast for 2015 to 4.4%, from a previous estimate of 6.6%.
Despite the country's difficulties, De Ruyter says it is still a very good market for Nampak, with favourable longer-term prospects.
- Stay connected, up to date and in the loop on what is happening in the world of finance and keep track of newly published expert insights and interviews with CFOs and CEOs. Become an online member and receive our newsletter, follow us on Twitter, like us on Facebook and join us on LinkedIn.
