“The Potential Has Not Yet Been Fully Realized”: Richard Clemens (VDMA) on Africa’s Packaging Market

A dynamically growing population, rising food production, and strong interest in modern technologies: Africa is considered an exciting growth market for the packaging industry. This is also reflected in the strong interest shown in the interpack alliance trade fair duo, pacprocess MEA and Food Africa, in Cairo. Yet opportunities and challenges often go hand in hand on the continent. A lack of infrastructure, financing, or skilled labor continues to slow progress in many places. In this interview, Managing Director of the VDMA Food Processing and Packaging Machinery Association, Richard Clemens, explains where he currently sees the greatest potential, the hurdles German and international mechanical engineering companies must overcome, and why strong local partnerships can be the key to success.

The growth potential of Africa’s packaging industry is substantial and highly diverse. We are talking about 54 very different countries and markets. Over the past five years, global exports of packaging machinery to the region have already risen to almost €1.5 billion. But the potential is far from exhausted. Important drivers include the expansion of local food production since the pandemic, the growing urban population, and an increasingly demanding middle class.

For German and international machinery manufacturers, this translates into attractive opportunities: technology from abroad enjoys an excellent reputation, and demand for efficient and sustainable solutions is high. However, trademarks like “Made in Germany” alone are no longer enough. What matters now is actively engaging with local markets, adapting to different conditions, and pursuing genuine partnerships.

The challenges vary by country, but shortages of skilled labor and financing are among the biggest obstacles. Often, there is a lack of locally trained staff for commissioning and service, making reliable partnerships on the ground indispensable.

In addition, high interest rates often make it difficult for local companies to invest. This is why external export financing instruments play such a vital role. There has been significant progress in recent years: since October 2023, for instance, the Competence Center for Financing in West and Sub-Saharan Africa has been established in Côte d’Ivoire. Yet packaging machinery often falls outside the scope of such programs, as banks typically only become interested in so-called small tickets starting at project sizes of one million euros and above.

For now, raw material availability and cost efficiency remain the main factors in packaging decisions. Nevertheless, sustainability issues are gaining importance, driven by international trade relations, export requirements, and the growing environmental awareness of urban populations.

At the same time, local structures remain challenging, with inadequate waste and recycling systems in many regions. Interest is, however, increasing in innovative solutions, such as switching to paper-based packaging or adopting modern recycling technologies. Just last year, we welcomed a delegation from ten African countries to Germany for an exchange on recycling technologies.

It will take a combination of political, economic, and technological factors. Politically, reliable frameworks and targeted support programs are needed to put innovation and sustainable development at the center. Economically, investments in infrastructure, logistics, and education are critical to building local value chains and creating opportunities for all market players. Technologically, it is essential to develop machinery and equipment that are resource-efficient, low-maintenance, and flexible enough to meet the diverse demands of African markets. Only through a holistic approach can sustainable production cycles be established that meet both economic and ecological standards – thereby strengthening the packaging industry in the long term.