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MARKET SURVEY ON PLASTICS AND ARTICLES THEREOF

(HS NO.39)

Product Description

            Ethiopia imports mainly the following plastic products and raw materials under HS NO.39.01 to 39.26 Polymers of ethylene, in primary forms, Polymers of propylene or of other lefins, in primary forms, Polymers of stryrene in primary forms, Polymers of vinyl chloride or of other halogenated olefins in primary forms, Polymers of vinyl acetate or of other vinyl esters in primary forms, Acrylic polymers in primary forms, Polyacetals other polyethsers and expoxide resins in primary forms, Polyamides in primary forms, Amino-resins, phenolic resins and polyurethanes, in primary forms, Silicons in primary forms, Petroleum resins, coumarone, indene or cumarone-indene resins and polyterpenes, Cellulose and its chemical derivatives, Natural polymers, Ion–exchangers, Waste parings and scrap of plastics, Monofilament of which any cross sectional dimension exceeds 1mm rods, Tubes, Pipes and hoses and fittings, Floor coverings of plastics (Tiles),          Self adhesive plates, sheets, film, foil, strip and other flat shapes of plastics, Other plates, sheets, film, foil, strip and other flat shapes of plastics, non-cellular and not reinforced, Other plates, sheets, film, foil, strip and other flat shapes of plastics, Baths, Shower-baths, wash-basins, bidets, lavatory pans, seats and covers, Packaging materials, Tableware, kitchenware, other household articles, Builders’ ware of plastics, Office or school supplies, Articles of apparel and clothing accessories and furniture & fittings.

Production:

            The manufacturing sector is at an early stage of development, mainly engaged in the production of household articles, high pressure and low pressure pipes/tubes, pipe fittings, shower hoods, wash basins, insulating fittings, light fittings, office and school supplies, PP sacks, packing materials, fittings for furniture, furniture, plastic containers, etc. However, the country is still relying on import of plastic goods and raw materials.  According to the figures obtained from the Ethiopian Investment Commission, eighteen Indian companies have received investment licenses to invest in this sector, of which some are already at project implementation stage. 

Ethiopian Imports:

Ethiopian imports include products falling under HS NO.39.01 to 39.26.  Details of last three years Ethiopian import figures are given below:-

Analyzing the above figures, it is noticed that there has been considerable growth in import of plastic products and raw materials to Ethiopia in the last three years.  While in the year 2004 the Ethiopian import was worth US$77.81 million, it increased to US$132.0 million in 2006.  Ethiopian import increased by 68.2 per cent in 2005 over 2004 and increased by 0.84 per cent in 2006 over 2005. 

Ethiopian import statistics for the years 2004 and 2005 are given below:

Major Exporting Countries to Ethiopia

Market Share in Ethiopian Imports: (Year 2005)

China, Saudi Arabia and United Arab Emirates are the major exporting countries supplying plastic products and raw materials to Ethiopia.  Their market share in Ethiopian imports was 34.33% (China: 15.09%, Saudi Arabia 9.76% and United Arab Emirates: 9.48%).  The other major exporting countries with their share area: Germany (7.48%), Belgium (6.59%), India (6.07%), Italy (5.89%), Thailand (5.39%), Korea, Republic (4.01%) and Netherlands (3.16%) in that order.

India’s export:

India’s export in this sector cover finished products and raw materials.  Major plastic products exported by India to Ethiopia include raw material like HDPE, LLDPE, Master batch, HDPE/PVC Granuals, PVC raw materials for sole production, PVC stabilizer, etc. Injection machine part, PVC pipes/tubes & fittings, irrigation flexible hose, floor/wall coverings, tiles, stoppers, lids, caps and other closure of plastics, self-adhesive tapes, P.P. bags and sacks, office or school supplies, furniture & fittings, Household/toilet articles, tableware and kitchenware, packing goods, builders’ ware of plastics, boxes, crates and similar articles of plastics, Feeding bottles, Decorative Laminated sheets, Plastic buckles, plastic medical equipment, reservoirs and similar containers, shutters, binds and similar articles and other articles of plastics.

There is a continued increasing trend in Indian export of plastic products to Ethiopia.  While in 2004, Indian export was US$4.10 million, it increased to US$7.94 million in 2005 showing an increase of 93.6%. In the year 2006, India imports increased to US$9.30 million and accounted 7.01% of the total Plastic products imports into the country.  

According to information obtained from the Directorate General of Commercial Intelligence and Statistics, following are the figures of Indian exports of plastic products to Ethiopia. 

                                                                                    FOB VALUE IN LAKH RUPEES

Analyzing the above figures, it is noted that Indian exports of plastic products to Ethiopia have an increasing trend for the last three years.  In 2006-07, plastic products are the 7^th largest export item from India to Ethiopia. 

India’s presence in Plastic Sector

Since 2002, The Plastic Export Promotion Council has been organizing participation of Indian companies in the Addis Chamber International Trade Fair. Several Indian companies participated through PLEXCONCILI in the 6^th, 7^th, 8^th, 9^th and 11^th Addis International Trade Fair held in Addis Ababa.  The Indian companies received many serious business enquiries and did good business through participation in the Addis International Trade Fair. 9 Indian companies will also be participating in the 12^th International Trade Fair to be held in Addis Ababa from 21-27 February 2008 through PLEXCONCIL.

Custom Duties:

Industrial Association:

The name, address with other details of the Industrial Association dealing with Plastic products is given below:-

1. Mr. Teshome Beyene,

Secretary General,

Addis Ababa Chambers of Commerce &

Sectorial Associations (AACCSA)

P.O. Box 2458,

Addis Ababa

Telephone No.00251-11-5518055/513814       

Fax No.00251-11-5511479

E-mail: aachamber1@ethionet.et

Website: www.addischamber.com

(This is the most important and active chamber of commerce in Ethiopia)

2. Mr. Yoseph Tesfaye,

Secretary General,

Ethiopian Chamber of Commerce and

Sectorial Associations (AACCSA)

P.O. Box 517,

Addis Ababa

3. Mr. Mohammed Nursaney,

President,

Ethiopian Manufacturing Industries Association

P.O. Box 2218,

Addis Ababa

Comments and Market Situation

1. In the last three years, Ethiopian imports are increasing.   In 2005,  it increased by 68.8 per cent over 2004 and in the year 2006, it increased by 0.84 per cent over 2005.  About 7.01% of the total import into Ethiopia is made from India. 

2. The major exporters of plastic products to Ethiopia are China, Saudi Arabia, United Arab Emirates, Germany and Belgium.  These five countries have a share of about 48.4% in the total Ethiopian imports of plastic products.  China’s share was  about 15.09%, whereas India’s share is 7.01 per cent in 2006.

3. Indian products are well accepted for its quality and price competitiveness however other factors like marketing, delivery schedules and packaging are important for the Indian companies to enter this market in a big way. 

4. Indian companies should further explore the Ethiopian market, including through participating in the Addis Chamber International Trade Fair held in Addis Ababa.  The presence of the companies in the fair should be based on good companies.

ADDIS ABABA (Ethiopia): February, 2008

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