Frost & Sullivan: Construction Recovery Supports the Southern African Paints and Coatings Market

CAPE TOWN, South Africa, July 19, 2010 - The paints and coatings market is primarily driven by the construction
sector. The South African construction industry slowed down drastically
during 2008 and 2009 due to the economic crisis, but started to recover
gradually in the third quarter of 2009. However, Namibia and Zambia, are now
witnessing a rise in construction activities.

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New analysis from Frost & Sullivan (www.chemicals.frost.com),
Southern African Paints and Coatings Market, finds that the market earned
revenues of US$603.0 million in 2009 and estimates this to reach US$765.3
million by 2016. The products covered in this analysis include decorative
coatings, automotive and refinish coatings, industrial protective coatings
and other coatings.

If you are interested in more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"The building industry and the growing automotive sector are stepping up
the demand for decorative paints and automotive coatings in Southern Africa,"
says Frost & Sullivan Research Analyst Dilshaad Booley. "The decorative
paints segment accounts for more than 50 per cent of the total paints and
coatings market in Southern Africa."

During the economic crisis, the construction industry saw very few
building projects being commissioned, while the automotive sector declined
dramatically. However, Southern Africa has many infrastructural opportunities
and governments have taken initiatives to provide enhanced and greater
infrastructure by commissioning building projects themselves.

However, the paints and coatings market in Southern Africa is highly
fragmented with low barriers to entry. Several small paint manufacturers are
establishing themselves in the market, thus increasing the competition and
range of brands available.

"For local manufacturers, having to import large amounts of raw materials
increases the manufacturing costs, making way for the import of cheaper
paints and coatings, creating added competition and price sensitivity," notes
Booley. "However, the starting capital to manufacture decorative paints is
low, easing market entry and increasing competition among local
manufacturers."

Local manufacturers should establish good customer relations and offer a
wide range of cost-effective products to successfully maintain and develop
their market share.

"In an attempt to widen the market demand, manufacturers and distributors
should educate consumers about the benefits of purchasing superior quality
paints," concludes Booley. "Although quality paints cost more, they save the
consumer from having to recoat more often."

Southern African Paints and Coatings Market is part of the Chemicals &
Materials Growth Partnership Services programme, which also includes research
in the following markets: South African Chemical Solvents Market and South
African Market for Agricultural Chemicals. All research services included in
subscriptions provide detailed market opportunities and industry trends that
have been evaluated following extensive interviews with market participants.

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    Southern African Paints and Coatings Market
    M56A

    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

www.frost.com

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com