A continent full of opportunities: We continue to expand in West Africa!
Klingele continues expansion in West Africa.
The continent's potential is often less in focus when people talk about Africa. Yet Senegal, for example, has seen average economic growth of over six per cent in recent years – and packaging is in high demand there right now...
In 2015, we took our first steps on the African continent with two processing plants in Mauritania - and are more convinced than ever of the prospects that the region offers us. We now want to continue our African success story with a new processing plant in the Diamniadio industrial park in Rufisque near Dakar. The production hall has already been completed and production is scheduled to start in summer 2022. We will initially process corrugated cardboard sheets from our subsidiary Klingele Embalajes Canarias in Tenerife into finished packaging on two production lines. Demand comes primarily from the agricultural, fish and other food industries. The plant will start with a production capacity of 4,000 tonnes; however, there are already plans to expand the site as volumes grow. By establishing local production capacities in Senegal, we aim to tap into new West African markets in particular, including Côte d'Ivoire, Ghana, Cape Verde, Mali and Burkina Faso. In addition, the new commitment offers us the opportunity to optimally utilise KEC's Wellpappe plant in Tenerife.
"With our packaging, we improve the supply of food to the population and expand local value creation on site."
Dr Jan Klingele, Managing Partner of Klingele
Promotion by DEG
We receive financial support for our project from the "Africa Connect Programme" of the state-owned German Development Finance Institution (DEG). The prerequisite for such funding is sustainable entrepreneurial action, which is also aimed at achieving the 17 Sustainable Development Goals of the United Nations. The creation of local jobs with prospects played a particularly important role: in an initial phase, we will employ over 40 people at the plant in Senegal, including local workers without formal qualifications who find it particularly difficult to find work on the labour market. Apart from the plant manager Guillermo Boué from Tenerife, all jobs will be filled by local people. We aim to cover almost 100 per cent of our plant's energy requirements from renewable sources, in particular solar energy.
Investment-friendly climate - high demand for packaging
Economic growth in Senegal averaged more than six per cent in the years before coronavirus. The West African country is also characterised by an investment-friendly climate and a high degree of political stability and legal certainty. Above all, however, the government is endeavouring to reduce its dependence on food exports in particular. Its promotion of the sector is reflected in growing yields, for which packaging is then also required as a consequence. Senegal is also the gateway to the West African region with a population of around 116 million people and offers good logistical connections.
"We are delighted that DEG has placed its trust in us - and look forward to implementing our principle of sustainable business in Senegal," emphasises Dr Jan Klingele, Managing Director of Klingele. "With our packaging, we are improving the supply of food to the population and expanding local value creation on site. We also employ almost exclusively local people and thus support the improvement of living conditions in Senegal."
As a German SME, we are still one of the pioneers in Senegal. However, since our first involvement in Mauritania, Klingele's subsidiary Klingele Embalajes Canarias has already successfully acted as a bridgehead for us on the African continent and established valuable contacts that are now paying off. "Five years ago, we weren't even on site," confirms future plant manager Guillermo Boué. "Today, we have already built up a good reputation with the companies in our most important target industries, which we can continue to build on."