The company said that the agreement is based on the long-term partnership between Borouge and Somochem, and aims to increase Borouge’s geographical footprint and presence in the East African region. This development comes on the back of the significant growth achieved by Borouge in its market share in the region.
Over the past five years, Borouge has increased its sales of infrastructure solutions to the East African region and doubled its sales volume of upgraded packaging solutions.
Borouge, one of the leading petrochemical companies in providing innovative and diversified polyolefins solutions, has implemented an aggressive sales and marketing campaign in the region with a strong focus on Kenya, Tanzania, Ethiopia, Uganda and Rwanda which are the fastest growing countries in the region in terms of GDP.
According to data from the African Development Bank, economic growth in the East African region is expected to reach 5 percent in 2023 and 5.4 percent in 2024.
Market demand has been driven by rapid and significant investment in infrastructure, improved healthcare requirements, rising standards of living and urbanization.
The number of people in the region who do not have access to clean water reaches more than 112 million, according to the United Nations Children’s Fund (UNICEF), emphasizing the importance and necessity of establishing a strong and solid infrastructure to support the process of development of the region.
Khalfan Mohammed Al Muhairi, Senior Vice President Middle East, Africa and Export at Borouge said: “We are now focusing our attention on the growing demand for our solutions in the East Africa region, which has now become a key strategic market for Borouge. We found a gap in East Africa in terms of demand for packaging solutions. developer excellence, enabling us to explore new opportunities to increase our market share over the next 5 years.In 2022, we increased our sales of developer packaging solutions in the East Africa region to AED 496 million ($135 million), and of energy and infrastructure solutions “Our infrastructure has reached AED 184 million ($50 million), demonstrating our position as a reliable and reliable partner for the biggest brands and distributors in the region. We are optimistic about achieving further growth in the East African region.”
With an estimated population of half a billion, the region is one of the fastest growing economies in the world, with many global consumer brands benefiting from this growth and partnering with Borouge to develop premium and recyclable products.
Borouge launched more than six new products of its advanced packaging solutions which contributed to the organic growth of its sales. New sustainable packaging solutions are designed with consumers and discerning industrial applications in mind. It has been designed to be safe, lightweight, fashionable and environmentally friendly. The petrochemical company also plans to launch new classes of solutions during 2023 to meet the growing requirements of the market.
Borouge Energy solutions contribute to the “energy everywhere” when used in the manufacture of insulation and sheathing systems for low, medium and high voltage power transmission and distribution cables. Moreover, Borouge piping solutions have the characteristics of improved processing, reduced maintenance, lower installation costs, longer product life, increased safety and energy efficiency.
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