CONTEXT AND CHALLENGES
A lack of intermediate products is slowing down the construction boom
North and West Africa is experiencing a construction boom that is driven by industrialisation and urbanisation. Continuous economic growth is forecast for the coming years in countries such as Tunisia, Senegal, Côte d’Ivoire, Libya, and many others. The construction activities are leading to an increased demand for aluminium profiles, hinges and other accessories for windows, doors, and blinds. The market clearly has potential, and there are many business opportunities. Producing and supplying local products and materials would be an opportunity to strengthen the entire building value chain. In this way, the company is positioning itself to become a major player in the sector.
PROJECT APPROACH AND PROJECT GOALS
Local production of high-quality aluminium profiles
A consortium of several companies is planning the local production and marketing of aluminium profiles and fittings, which are to be offered at a lower price than similar imported products. All members of the consortium belong to the Mas group of companies – a major manufacturer of aluminium products. They have many years of experience in the construction industry. For this innovative project, they receive support from the Facility Investing for Employment.
Polybat believes that there is room for improvement at all levels of the ecosystem to optimise the contribution of all stakeholders and to improve the customer experience in the long run. Polybat is planning to supply high quality products and to provide after sales services that are in line with the customers’ expectations. The project also has the potential to create significant employment opportunities. The consortium has committed to creating 100 new jobs in its own company. In addition, the project will also create a significant number of jobs in the various partner companies.
STATUS AND OUTLOOK
Marketing in Tunisia and the North and West Africa region
The production of the aluminium profiles will take place in the industrial area Thina/Sfax. This is also where the storage facilities will be located. The consortium wants to open showrooms to present the products near the main sales markets. The entire construction industry in Tunisia is expected to benefit from the qualification measures and the development of production capacities in the country. Exports are to go primarily to the North and West Africa region. Libya, Senegal, and Côte d'Ivoire are considered promising markets.
The consortium around the lead company Mas Metal plans to Invest a total of 13.05 million euros. The Facility Investing for Employment grants a subsidy of 6.53 million euros (50%). The funds will be used to pay for construction measures and the purchase of machinery, as well as to finance an initial stock of material for the manufacturing process of the aluminium products.
The Facility Investing for Employment (IFE) of KfW Development Bank is part of the Special Initiative on Training and Job Creation of the German Federal Ministry for Economic Cooperation and Development (BMZ). With its support, the Facility wants to remove barriers that prevent the creation of new and better jobs in the private sector.