Economists have long talked about Africa in terms of emerging markets and economies that mainly depended upon raw materials and agriculture. The question was how to improve African economies through diversification.

But the reality is that the region is vital for food and resource thirsty developed and developing nations. For this reason, we see increasing investment in Africa and Asia (mainly Mongolia and Afghanistan) by Western countries and China. If you spend one day in any city in Africa, you will feel it moving toward a mass manufacturing and mass consumption market.

Because of the increased investment in African economies, lubricant demand is growing at nearly the same pace as Asia. With heavy investment in infrastructure, demand is increasing in nearly every sector, including manufacturing, construction, agriculture and especially transportation.

The energy and mining sectors are also seeing significant growth in lubricant demand. The continent has 12 percent of the world’s oil reserves, 40 percent of gold deposits and about 90 percent of chromium and platinum deposits. Africa also has vast areas of arable land and timber. The table lists some economies that depend on natural resource development and basic industries.

Economic disparities in Africa are among the highest in the world, but the middle income population is growing rapidly and has tripled over the last 30 years to about 313 million, nearly 34 percent of the continents total population. Thus, the African middle class is almost the same size as that in India and China, and it is growing due to the spread of wealth.

This population has a tendency to shift from two-wheel vehicles and motorbikes to small cars. It also tends to use branded material, so packaging is important.

Engine oil quality is another issue in Africa. For the most part, consumers use similar criteria for choosing engine oil throughout Africa. But in some parts of the continent, notably in the north and in South Africa, this trend is changing rapidly, and consumers are becoming more discriminating. Other regions are also gradually shifting their selection criteria.

I remember 10 to 15 years ago in the Middle East, the major factors in choosing motor oil were thickness and color. Darker oil was perceived as being more viscous, and more tackiness meant better oil pressure and protection. As a result, people preferred monogrades and heavy oil. This was acceptable for older model cars operating in that harsh environment. But modern vehicles traveling on improved roads need high-quality engine oil.

Unfortunately, many unscrupulous manufacturers and traders have been pouring very low quality oil into the region. These oils are blended from poor-quality recycled base oils or blends of base oil and by-products with low flash points and no performance additives.

Local lubricant suppliers are increasingly educating consumers about selecting the proper oil for their vehicles. In addition, many countries, including Nigeria, Tanzania, Kenya and South Africa, have started campaigns to raise consumer awareness about low-quality oil.

A number of industries are also demanding higher quality oils, including mining, construction, metal processing, cement and agriculture. And, auto manufacturing is becoming an important driver for African lubricant demand and quality shift. About 900,000 vehicles are now manufactured annually in Africa, and several new players are joining the ranks of auto manufacturers. Also, a remarkable number of used cars are being sold in Africa. With about 29 million vehicles already in use and about one million entering the market annually, there will be heavy demand for quality lubricants.