Sika, a specialty chemicals company, has continued to expand its presence in Africa and has established a new national subsidiary in West Africa’s second largest economy, Ghana, in response to the high demand for its products in the country. By adding this latest company to its network, Sika is taking a further step towards implementing its growth strategy in Africa.
In a press statement, Sika highlighted that with more than 30 million inhabitants, Ghana is West Africa’s second most populous country and due to its strong cocoa exports and a wealth of natural resources, its economy is flourishing.
Full of optimism, the company stated that “the country’s growing construction market gives Sika the opportunity to contribute to its economic development”.
“For several years, Sika served the Ghanaian market from its subsidiaries in neighbouring countries and thereby built a local customer base. Given the large volume of business and high demand, Sika has now opened its own national subsidiary to manufacture locally and provide technical support. Based in Accra Tema Industrial Zone, Sika Ghana will initially sell concrete admixtures and grinding aids and, from early 2022, engineered mortars and tile adhesives as well”.
Sika Ghana
Strong investor confidence
Sika Group indicated that the Ghanaian economy is expected to grow by more than 4% in the current year. Investors’ confidence, according to Sika, is based on government stimulus programs and the Ghanaian government’s proactive economic development plans to promote local businesses. Major infrastructure projects include several important rail lines, upgrading the port of Tema near Accra, expansion of the existing road network, and healthcare infrastructure, Sika pointed out.
Ivo Schaedler, Regional Manager, Europe, the Middle East and Africa (EMEA), highlighted the great potential of the African continent to the company’s long-term ambitions.
“Africa plays a key role in our Growth Strategy 2023. The founding of our company in Ghana means that we now have 18 national subsidiaries on the African continent. Ghana and other African countries are experiencing rapid growth in major cities and metropolitan regions, with corresponding demand for infrastructure projects. We therefore see excellent potential for Sika, medium and long term”.
Sika Ghana
Strong performance in first 9 months
Despite the persistently strong impact of the coronavirus pandemic and the associated bottlenecks in the procurement of raw materials, Sika continued its consistent growth trajectory – closing the first nine months of 2021 with a sterling performance. Sales rose sharply to a record figure of CHF 6,862.7 million, corresponding to a growth of 18.1% in local currencies.
The EMEA region reported a sales increase in local currencies of 17.6% for the first nine months compared to 3.8% recorded in the previous year. As in the previous year, growth in the distribution and renovation business outstripped growth in the other business segments. The private residential sector in particular, posted a highly dynamic performance.
Almost all countries in the region achieved double-digit growth rates. In general, purchases of Sika product solutions via e-commerce platforms saw an above-average increase.
Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry. The company has subsidiaries in 101 countries around the world and manufactures in over 300 factories. Sika disclosed in the press statement that Its 25,000 employees generated annual sales of 7.88 billion Swiss franc in 2020.
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