State rallies behind packaging sector as catalyst for growth

Analysts say manufacturers will only benefit fully from the expanded market if they embrace modern production technologies. [iStockphoto]

The government and private sector leaders have called for closer collaboration to unlock the full potential of Kenya‘s packaging, printing and graphics industry.

They said investment in technology, innovation and supportive policies will be critical in accelerating industrialisation, boosting exports and positioning Kenya as Africa‘s manufacturing hub.

The appeal was made during the launch of the Africa 4P Expo, an international exhibition focusing on plastics, packaging, printing and petrochemicals, where industry leaders said the sector remains one of the most overlooked yet indispensable pillars of manufacturing and trade.

Speaking on behalf of Principal Secretary for Industry Dr Juma Mukhwana, Director of Industries Joseph Mbeba said the government remains committed to creating an enabling environment for manufacturers by addressing policy and regulatory challenges that affect investment and competitiveness.

“Our role is facilitative. Whenever investors encounter challenges that require policy interventions, we engage the relevant regulatory agencies to ensure they are not adversely affected. We must ensure our manufacturers remain competitive because they are not only competing within East Africa but also with producers from other regions,” Mbeba said.

He acknowledged concerns raised by manufacturers over the cost of electricity, taxes on production inputs and packaging materials, saying government continues to engage stakeholders on measures aimed at lowering the cost of doing business.

“There are ongoing discussions on power costs because affordable energy is key to supporting manufacturers. The government appreciates that lowering production costs will improve competitiveness and increase exports,” he said. 

The calls come at a time when Africa is seeking to expand intra-African trade under the African Continental Free Trade Area, a market of more than 1.4 billion people with a combined GDP of over Sh387 trillion.

Analysts say manufacturers will only benefit fully from the expanded market if they embrace modern production technologies.

The exhibition seeks to bridge the technology gap by connecting African manufacturers with global suppliers of modern machinery and production systems.

Country Director of Global Exhibitions Edwin Masivo, who organised the expo, said many manufacturers continue to operate ageing equipment that consumes excessive electricity, limits production capacity and raises manufacturing costs.

“We want to bring the latest technologies to Africa so manufacturers can reduce production costs, improve efficiency and become more competitive. Better machines consume less power, increase productivity and ultimately improve profitability.” 

He said the exhibition will also provide opportunities for joint ventures, distributorships and knowledge transfer between African manufacturers and international companies from Asia, Europe and the Middle East that are seeking entry into African markets.

„Many international manufacturers are looking for African partners. Some are looking for distributors while others want to establish joint ventures or transfer technology to local companies. Those partnerships will help manufacturers scale up production, create jobs and expand exports.“

The organisers expect buyers and investors from countries including the Democratic Republic of Congo, Ethiopia, Rwanda and South Sudan, creating new market opportunities for Kenyan manufacturers. 

The Africa 4P Expo, to be held from January 18 to 20 in Nairobi, is expected to bring together manufacturers, technology providers, investors and policymakers from across Africa and beyond to explore opportunities in packaging, plastics, printing and petrochemicals.

Institute of Packaging Professionals Kenya Chief Executive Officer Joseph Nyongesa said packaging should no longer be viewed simply as a supporting activity but as a strategic investment that multiplies the value of products.

„We have spoken for many years about value addition, but packaging actually delivers value multiplication. It determines how products are presented, protected and accepted in the market. Without packaging, printing and plastics, products cannot compete locally, regionally or globally,“ he said.