Mr. Peter Mwaniki Ngaruiya is the Executive Director of the Eastern and Southern Africa Dairy Association a position he has held for the last five years. Mr. Ngaruiya joined the association eight years ago as the overall ESADA program manager. Prior to joining ESADA, Mr. Ngaruiya worked for the Center for Corporate Governance where he helped establish the Institute of Directors (Kenya). Mr. Ngaruiya studied both his undergraduate degree (Bachelor of Commerce) and Master in Business Management (MBA – Strategic Management) in the University of Nairobi. Mr. Ngaruiya has led various National, regional and international programs in the African Dairy sector for the last five years. He is a board member of various organizations in Kenya and a committee member of several development programs and task forces in the dairy industry. He is married with one daughter.
African Dairy; The Grand Opportunity
Despite the tough economic times in Sub-Saharan Africa occasioned by dip in commodity prices, drought and tightening external financial conditions, the economic growth is much higher than the developed economies and even the global average. At approximately 3.4% developing economies growth is almost double that of developed economies. This is as a result of economic reforms and sound policies being implemented in developing countries.
The economic growth, coupled by urbanization and population growth in Sub-Saharan Africa continue to drive the demand for milk and milk products. Milk production is also growing albeit slower than the demand for milk.
These opportunities have elicited a lot of interest from Multinational who have invested in the region either by taking over existing businesses, merging with local companies or establishing operations from scratch.
Dairy production systems in Sub-Saharan Africa differs considerably from the developed countries. The policy environment is also different presenting a few challenges to foreign direct investment. There is however a lot of economic reforms happening since early 90’s including liberalization that is making it easier for Multinationals to invest in the dairy sector.
The leading retail outlets have also joined in the frail working with existing milk processors and producing in-house milk brands. With Multinational retail outlets opening up in Africa, we expect a lot of re-alignment in milk processing and marketing.
Needless to say, African Dairy Sector present grand opportunity than anywhere else in the world today to invest in dairy sector.