Africa recycles less of its used lubricants into base oils than other regions, and several obstacles stand in the way of increasing that amount, industry officials said at a conference in Cape Town, South Africa, last month.
Half of Africas 54 countries have passed legislation regulating imports of used vehicles - either banning them completely or capping the age of units that can be brought in - and this is changing fleet mixes and gradually impacting base stock needs, an ExxonMobil official said at a conference here.
The African Continental Free Trade Agreement that went into force in May benefits Africas lubricants blenders by reducing tariffs and other barriers to doing business with other countries within the continent, industry insiders said Nov. 6 at a conference in Cape Town, South Africa.
Ola Energy urged the Kenyan government last week to lower its import duties on base oils and lubricant additives to allow lube blenders within the country to be more competitive in the regional market.
Authorities have approved Rubis proposed acquisition of KenolKobil, one of East Africas leading lubricant suppliers. Rubis, a France-based oil products supplier, already owned 24.99 percent of the Kenyan company when it announced the then $353 million takeover offer in October.
Tanzania waived its 25 percent duty last month on imported Kenyan lubricants. Some players in the Tanzanian and Kenyan lubricant markets said the move will bring about healthy competition; however, not all industry participants are confident it will benefit Tanzanias domestic market.
When most multinationals began moving out of Kenya, it opened the door to an influx of new lubricant market players, a Kenyan lubricants distributor official told Lube Report on the sidelines of a conference in Cape Town, South Africa last month.
Contrary to global trends, African demand for API Group I base oils will continue rising in coming years and the grade remain the dominant choice of the regions lubricant market, an industry insider said at the ICIS African Base Oils and Lubricants Conference last month.
The African lubricant markets lack of an adequate quality control mechanism - particularly for its engine oil segment - has led to ongoing challenges for industry players, speakers said during a panel at an industry conference last month in Cape Town, South Africa.
African rerefiners agree that overcoming skeptical public perception of their rerefined base oils is a significant hurdle to growth. However, they debated about other factors - such as working with multinational companies and choosing the best production process - during a panel discussion at an industry conference in Cape Town, South Africa.
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