P&G grows more than tenfold in Africa in past decade

P&G's headquarters in Cincinnati. P&G sees a huge future in Africa having grown its business more than tenfold in the past decade. Image: Wiki Images.

The global consumer goods group has grown its African business more than tenfold in the past decade. P&G's brands include Gillette‚ Pantene‚ Duracell and Oral-B.

"We do not see these challenges as being any different from challenges we've seen in other developing markets‚" Yates said at the World Retail Conference Africa held in Sandton last week.

Despite prevalent risks such as lack of infrastructure‚ income disparity‚ cross-border commerce and red tape‚ accelerating economic growth in Africa has consumer goods manufacturers such as Nestlé‚ Mondelez and Unilever‚ intensifying their efforts to reach untapped consumer spending potential.

"When you look at the population growth‚ the favourable demographics like 50% of the population being under 15 and when you look at the rising middle class‚ the argument from a consumer perspective is compelling‚" Yates said.

P&G plans to build a R1.6bn multi-category manufacturing plant in South Africa‚ in line with its aim for making the country the manufacturing hub of P&G's southern and east African markets. Construction of the new plant is expected to start next year with a production targeted late in 2016 or early 2017.

According to P&G vice-chairman in charge of global business units Dimitri Panayotopoulos‚ the long-term business opportunities in Africa were huge.

"The African population is growing and consumers are becoming more affluent and demanding high-quality brands that weren't previously available here‚" he said. P&G has two facilities in Ibadan‚ Nigeria‚ and is building a manufacturing plant in Lagos.

Meanwhile‚ Unilever last week invested R500m in an ice cream factory in Midrand‚ which the Anglo-Dutch multinational consumer goods company said will help drive growth for the company in emerging markets.

"With investments planned across South Africa‚ Nigeria‚ Ghana‚ Cote D'Ivoire‚ Kenya and Zimbabwe‚ this is just another example of our multi-year‚ multimillion investment plan to cater for our growth‚" Unilever South Africa's chairman Peter Cowan said.

"The ice cream market in South Africa is relatively small‚ but is one that we believe has significant potential. South Africans eat only 1-litre of ice cream a year‚ whereas Turks eat nearly 2.5-litres and New Zealanders at least 15-litres," he said.