South Africa is one of Africa’s largest economies, with a population of around sixty-one million people. As a mature market, the country has a strong and consistent demand for high-quality lubricants.
The demand for lubricants is driven by the automotive sector, agriculture, mining, construction, and industrial activity. Factors such as increasing vehicle ownership, the growth of the motorcycle market, and the expansion of mining and construction activities continue to attract entrepreneurs and investors into the lubricants distribution business in South Africa.
According to Mordor Intelligence, the country’s annual lubricants consumption stands at 419.90 million litres, with a projected annual growth rate of 4%. The market continues to experience significant growth and is becoming an attractive hub for leading industry players.
Despite the presence of major multinational brands, the market still presents opportunities for new and indigenous companies to partner, expand, and supply a wide range of lubricant products across the country. Opportunities exist in distribution, blending, and bulk supply to meet the growing needs for lubricant oils.
How Much Does a Lubricants Distribution Business Make in South Africa Per Month?
As stated earlier, the lubricants business is one of the most lucrative opportunities in South Africa.
The selling margin for lubricants in the country ranges between 15% and 37% per litre, with potential monthly revenue of approximately R150,000.00, depending on location, market penetration, and customer base.
Capital Requirements for Starting a Lubricants Distribution Business
The minimum working capital required for starting a lubricants distribution business in South Africa is approximately R3.5 million to R5.0 million. This level of capital is generally sufficient to build a state-of-the-art warehousing and distribution facility with the capacity to handle over one million litres of lubricants at a time.
Types of Lubricants You Can Supply.
The types of lubricants you supply will depend on the demand in your target area. However, a wide range of products is consistently needed across South Africa.
You can supply:
- Engine oils
- Industrial lubricants
- Hydraulic fluids
- Transmission oils
- Greases
- Other petrochemical-related products
Your customers may include automotive workshops, transport fleets, mining companies, agricultural operations, and general industrial users.
If you need a business plan or a feasibility study for a lubricants distribution business in South Africa, contact us at info@tanzaniapetroleum.com or +255 (0) 655 376 543.
