Entrepreneurship Zone: 30 November 2022 :: Production of baby food in Africa offers promising potential

Wed Nov 30 08:54:49 CAT 2022

 <https://bullszimbabwe.com/> 

 <http://www.bullszimbabwe.com/> Bullszimbabwe.com        <mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments        <http://www.bulls.co.zw/blog> Bullish Thoughts        <http://www.twitter.com/BullsBears2010> Twitter         <https://www.facebook.com/BullsBearsZimbabwe> Facebook           <http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn          <https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp         <mailto:info at bulls.co.zw?subject=Unsubscribe> Unsubscribe

Entrepreneurship Zone: 30 November 2022 ::  Production of baby food in Africa offers promising potential

 <mailto:info at bulls.co.zw> 

The local production of baby food in Africa is an unexploited opportunity, according to a new report by the International Trade Centre, titled Made by Africa: Creating Value through Integration.

Africa imports €570 million of food preparations for infant use every year, and this figure is projected to exceed €1.1 billion by 2026. This expected demand growth offers important investment opportunities in the infant food value chain in Africa.

Imports of baby food are 10 times higher than exports. At the same time, the continent has an abundance of fruits and vegetables, cereals, pulses and other ingredients used in infant food preparations, which are often exported without transformation.

The few companies that produce infant food in Africa source just 16% of their inputs from African producers. With 39 competitive input providers and an export value of €14 billion of untransformed products at the continental level, developing this value chain appears promising for investors and producers.

Most established African baby food producers (65%) focus solely on the domestic market, both for sourcing and selling. If companies export at all, they tend do so within Africa. Only 20% of firms generate sales beyond the continent, often through personal networks (friends and family members abroad) rather than commercial channels. Sourcing from other countries is usually limited to ingredients not available locally for which no alternatives exist, such as vitamins, minerals, dextrose or lactose, as well as machinery and packaging materials.

Challenges

Hurdles to replacing imported baby food with local production include:

Little specialised machinery and equipment in Africa and dependence on imports from other continents as a result. The cost to import such equipment, including duties and taxes, inspection, shipping and installation, can be significant and often unaffordable, particularly for smaller companies.

Limited trust in local brands. Demand for local brands is growing, yet companies say many Africans believe that baby food products from other continents, especially Europe, are better quality and more reliable. This lessens the attractiveness of local brands, even when they comply with high standards of production and are certified.

Few sector experts. Hiring and retaining skilled professionals such as nutritionists, food scientists, quality controllers and engineers is a challenge, particularly for micro and small baby food makers. Value chain participants say there are few practical training opportunities for entrepreneurs and workers on quality requirements and best practices for processing food, as well as basic business skills, such as marketing and accounting.

Howwemadeitinafrica

Invest Wisely!

Bulls n Bears 

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:            <https://bullszimbabwe.com/category/blogs/bullish-thoughts/> www.bullszimbabwe.com/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:      <http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 

DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

(c) 2022 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:  <mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77 344 1674

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221130/417c65a4/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221130/417c65a4/attachment-0002.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image005.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221130/417c65a4/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65574 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221130/417c65a4/attachment-0001.obj>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.jpg
Type: image/jpeg
Size: 36023 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221130/417c65a4/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 55800 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20221130/417c65a4/attachment-0003.jpg>