Where is Africa’s Lead Acid Battery Market Headed?

Published Date : Feb 18, 2016

In the next few years, the lead acid battery market in Africa is anticipated to witness considerable growth, according to recent research studies. Here’s a look at some of the major drivers and restraints of the market. 

Growing Demand for UPS Systems: The lead acid battery market in Africa is fueled by the increasing demand for lead acid batteries in inverters and UPS systems, which find application in a number of industries. The demand for UPS systems in this region is mainly high in small and medium businesses that are aiming to address the rising problem of unreliable power supply. 

Benefit of Long-term Contracts: The prevalent trend of long term contracts between manufacturers of lead acid batteries and suppliers of raw material is anticipated to propel the lead acid battery market in Africa. This growth driver on the supply side has benefitted both parties, wherein planning for the future becomes much easier and the manufacturer can get a much better deal in exchange for long term commitment. Contracts like these also help minimize the need for negotiating purchase orders. This in turn facilitates a formula of pre-agreed pricing. 

Increasing Environmental Concerns: One of the most important challenges that the lead acid battery market in Africa faces is environmental restrictions related to these batteries. Being an extremely toxic metal, if lead is not disposed in the right manner in a proper solid waste management system it can result in hazardous contamination and also hinder the recovery of organic materials within the waste. In addition to this, the government in Africa has tightened restrictions regarding the use of lead batteries, thereby hampering the market. 

Hoping to overcome this challenge, players within the lead acid battery market in Africa are focusing on research and development to come up with low cost, innovative, and environment friendly batteries.