Diversifieds and Industrials

Diversifieds & Industrials is the heartbeat of local and regional economies. At Absa CIB, the Industrials sector encompasses listed diversified groups that operate predominately in logistics, capital equipment (serving the mining, construction and agriculture sectors), automotive and packaging. A common denominator of the entities in this arena is that each is inextricably linked to the other sectors of the economy.

The pandemic has impacted the sub-sectors in various ways. For instance, the automotive sector has been hit hard and will require a long-term view for recovery. The pace of disruption in logistics has accelerated as manufacturers and retailers de-risk their operations by diversifying their supply chains, logistics companies will have to adapt their business models accordingly.

Given the asset-intensive and cyclical nature of the capital equipment sub-sector, these companies will increasingly look to partnerships and creative solutions for financing. And finally, the alcohol and tobacco bans have significantly impacted the packaging sub-sector.

Over the coming months we expect to see mergers, acquisitions and consolidation across these various sectors as we recover from the pandemic.

Absa’s strong sector-focus across industries positions us well to support Diversifieds and Industrials, leveraging our macro view to understand how different sub-sectors interlink and impact each other.

We foresee exciting opportunities to partner with our clients on solutions beyond traditional corporate and investment banking products as we move toward a new normal in a rapidly evolving world.