Your SlideShare is downloading. ×
Team Finland Future Watch: Hello Africa Tell Me How You Are Doing
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Team Finland Future Watch: Hello Africa Tell Me How You Are Doing

771
views

Published on


0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
771
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
25
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Hello Africa Tell Me How You’re Doing 27.5.2014
  • 2. Africa Future Watch - Sense Making, 27.5.2014 klo 9-13 Minerva - sali 9.00 Tervetuloa: Pia Salokoski, Tekes UM:n puheenvuoro : Antti Loikas, UM Signaalien esittely ja ryhmätöiden ohjeistus: Heta Pyhälahti ja Anna Erkkilä , Finpro Ryhmätyöt 11.00 Työlounas 11.45 Ryhmätöiden purku Kommenttipuheenvuoro : Antti Loikas, UM 12.55 Yhteenveto & tilaisuuden päättäminen: Pia Salokoski, Tekes 2
  • 3. Future watch- Afrikka 2014 720 signaalia 17 teemaa 8 mahdollisuutta (=ryhmätyöt) Korkean potentiaalin markkinat- ohjelma 3
  • 4. Signals / themes1. Urbanization and cities drive economic growth 2. Advances in construction technology 3. ‘Mobile’ Africa 4. Africa (collabo)rising 5. Emergence of financial markets and access to financial services 6. Financial service innovation 7. For Africa by Africa 8. Dietary changes 9. Wellbeing services – Fitness & Gym 10. Health care services 11. Digimedicine 12. Demographics 13. Increasing energy production through fossil fuels and nuclear 14. Renewable energy 15. Regional transmission of electricity 16. Creating jobs in Africa 17. Education empowering 4
  • 5. Urbanization and cities drive economic growth – African Development bank economist argue that urbanization is the catalyst for economic growth as this will create demand for good and services by the rising middle-class – Ideas and businesses are developed in cities where information and knowledge spreads and multiplies – The demand created by the cities will support domestic industries that will drive future industrialization – Urbanization is expected to offer the much-needed catalyst for economic growth 5
  • 6. Urbanization and cities drive economic growth – New apartment blocks are coming with dizzying speed to match the demand by middle-class city dwellers Trendwatching.com 6
  • 7. Urbanization and cities drive economic growth – East Africa’s biggest development, the Garden City, will be LEED certified Trendwatching.com 7
  • 8. Advances in construction technology – New technologies will require modern design and planning, which is now beginning to grow domestically creating demand for import of know-how – Better building technologies will enable smarter design – New structures will need to be furnished and fitted with the latest design and technology creating local industry and opportunity for international imports – Dar Es Salaam and Nairobi ranked as the fastest growing cities in Africa – There is a growing demand for ‘Grade A’ commercial buildings by companies and high demand for residential houses due to the growing size of middle-class. – East Africa has seen the emergence of new building technologies, such as steel frame and pre-cast concrete, in order to meet the demand for commercial, retail and residential space in the new emerging cities 8
  • 9. Advances in construction technology – There is a growing demand for ‘Grade A’ commercial buildings by companies and public institutions – New technologies bring development of local industry and opportunities for international high tech import – Looking for modern design, new know how – Green branding – High demand for residential houses due to the growing size of middle-class. Mass markets for new appropriate technologies – East Africa has seen the emergence of new building technologies, such as steel frame and pre- cast concrete – Implementations of solar water heaters in social housing – ”A Closed City in a City ” can provide offices, residential areas, retail areas and services or only some 9
  • 10. Advances in construction technology Green building wave is already there: – South Africa is celebrating its fiftieth Green Star SA certification rated building . There are also 150 buildings registered for Green Star ratings in the pipeline. South African is also a chairperson of the World Green Building Council. – New Innovation HUB in Botswana will build up the imago with modern LEED certified multiuse building. 10
  • 11. Advances in construction technology – Pre- fabricated houses using galvanized steel and fiber cement coming to Kenya by a Turkish company- Elsek Construction. 11
  • 12. Advances in construction technology – Garden City- on going project, 50,000sqm retail mall, office space, 500 homes and central park scheduled for completion in June 2017 12
  • 13. Advances in construction technology – China’s Sichuan and China Railways sign a contract with Nairobi county government to builds 55,000 apartments in Nairobi from February 2015 13
  • 14. Advances in construction technology – Two 33-40 floor high rise commercial buildings are under construction in Nairobi 14
  • 15. ‘Mobile’ Africa – The emerging middle classes, who will travel more than ever, and often via new methods; and – The continent’s wealthier – and therefore more demanding – consumers, who will increasingly no longer feel the need to constantly make arduous journeys overseas when able to obtain similar experiences and to make and spend money, all locally. 15
  • 16. ‘Mobile’ Africa – Emerging middle classes, who will travel more than ever – Growing of amount of cars on the roads – Solutions for public transport – Smart cards for cities – Connectivity and services on the way – Investments for moving more goods on land and sea 16
  • 17. ’Mobile’ Africa – After a pilot program in Cape Town, in October 2013, FindMyWay launched its public transport information service across major South African cities including Johannesburg and Pretoria. The service enables public transport passengers to access information on the FindMyWay mobile site or free mobile app. Information on major transport providers such as arrival and departure times as well as pricing and maps are available via FindMyWay. 17
  • 18. ’Mobile’ Africa – In April 2013, Google partnered with Kenya’s Equity Bank to launch BebaPay; a range of pre-paid fare commuter cards for use on Citi Hoppa buses across Nairobi. To pay, users swipe the card when starting a journey and their fare is automatically deducted. The free BebaPay cards can be topped up at Equity Bank Service Agents or through the bank’s mobile banking platform, and passengers can also sign up to receive free SMS receipts and balance confirmations. 18
  • 19. ’Mobile’ Africa – In August 2013, South Africa-based Mellowcabs began production of its electric pedicabs, which will be used across Cape Town. Mellowcabs rides will be available free of charge, paid for by advertising on the interior and exterior of the vehicles. Via on-board tablets running geolocation software, passengers will be shown relevant ads and promotions when the cab is in proximity to specific stores or restaurants. Passengers can also connect to their social media profiles and use the tablet to take photos of their ride, while an AR facility enables them to view tourist information as they travel around Cape Town. Trendwatching.com 19
  • 20. ’Mobile’ Africa – July 2013 saw Rwanda-based Jaguar Executive Coaches equip its fleet of buses with wi-fi connections. Available across the company's 24 buses, passengers can access wi-fi with a speed of 21.6mb per second. Jaguar Executive Coaches offer a shuttle service between Kigali and Kampala in Uganda. Trendwatching.com 20
  • 21. ’Mobile’ Africa Transport improvements promote economic growth and social development by increasing mobility and improving accessibility to people, resources and markets. South African cities have been struggling with divided and fragmented city structures and poor public transport originated from the apartheid urban planning. MyCiTi Bus in Cape Town and Rea Vaya in Johannesburg are linking districts and people safely together by an affordable public transport system which can be used with a smartcard. Gautrain between Johannesburg, O.R. Tambo Airport and Tshwane (Pretoria) is connecting two cities more tightly together 21
  • 22. Africa (collabo)rising – Global brands seeking to connect with the hundreds of millions of eager African consumers are also cushioning their entry into local markets by teaming up with established domestic brands. – start dreaming up collaborations that bring something genuinely new, useful and of course needed to consumers. And think beyond just telecoms and financial services brands: from traditional offline organizations with online startups to quirky brands with prevailing incumbents. 22
  • 23. Africa (collabo)rising – August 2013 saw MTN Uganda partner with Kenya Airways to allow customers to pay for airline tickets using MTN’s Mobile Money platform. Customers can make reservations through the airline’s website or office in order to obtain a reference number, which allows them to then make payment via their mobile device. Trendwatching.com 23
  • 24. Africa (collabo)rising – In June 2013, Orange Horizons (a subsidiary of Orange) announced a partnership with South Africa-based telecommunications brand Nashua Mobile. Via the partnership, Nashua Mobile stores will offer Orange products at locations in Johannesburg, Pretoria and Cape Town. Trendwatching.com 24
  • 25. Africa (collabo)rising – In October 2013, Zambia-based mobile banking service Zoona launched a partnership with international telecommunications group Airtel. Via the partnership, Zambian Airtel customers can register for a free Airtel Money electronic wallet with any of Zoona's agents who are based across the country. Once registered, individuals can carry out transactions such as deposits, bill payments, transfers and withdrawals with a Zoona Agent. Trendwatching.com 25
  • 26. Africa (collabo)rising – July 2013 saw Kenya-based Bitcoin Wallet Kipochi partner with M-Pesa to launch a service enabling consumers to send the virtual currency (or convert it) to or from an M-Pesa balance. Via Kipochi’s service, customers can receive money transfers quickly and cheaply – even if they’re using a basic cellphone or located in a remote area. Trendwatching.com 26
  • 27. Africa (collabo)rising – In early 2013, Nigerian on-demand music platform iROKING partnered with 2go to offer the users of the mobile messaging service and social network free downloads. Whilst July 2013 saw MTN Nigeria launch a package designed to provide customers with affordable access to Eskimi, designed to facilitate cheaper access to the popular Nigeria-based mobile and social network. Through both collaborations, customers can enjoy a variety of data bundle options, free chat rooms, file sharing and social network browsing. Trendwatching.com 27
  • 28. Africa (collabo)rising – In July 2013, Red Bull Mobile partnered with South Africa-based telecommunications provider Cell C to offer customers a prepaid mobile data package. Consumers can access 200MB of data each month for a one-off fee of ZAR 99 (around USD 10), as well as receiving access to the ‘World of Red Bull’, a dedicated portal where customers can access perks (such as concert tickets), competitions and exclusive content. Trendwatching.com 28
  • 29. Emergence of financial markets and access to financial services 29 – Private capital flows to sub-Saharan Africa reached 67 billion USD in 2012 and overtook official development aid (42.5 billion USD). – In several countries financial markets are developing strongly attracting African and international private banks open their offices. – In countries with underdeveloped financial markets governments enact appropriate laws and regulations for financial services and set up payment systems in order to create markets and make them work. – Developing investment funds targeted to private sector are important players enabling the growth and change.
  • 30. Emergence of financial markets and access to financial services 30 – Financial markets (markets for financial assets such as stocks, bonds, currencies, commodities and derivatives) are underdeveloped in several African countries. In some countries formal financial markets are only in their infancy due to inadequate laws, regulations and supervision, weak stock exchanges, shortage of buyers and sellers of capital and simply due to lack of capital. – Situation has recently become better. Private capital flows (FDI, portfolio investments and loans) to sub-Saharan Africa reached 67 billion USD in 2012 and overtook official development aid (42.5 billion USD). Private local investors have managed to accumulate capital. Governments enact appropriate laws and regulations for financial services and set up payment systems in order to create markets and make them work.
  • 31. Emergence of financial markets and access to financial services – The uptake of insurance will create demand for improved health-care services and widen access to them. – Personal loans and mortgages will lead to an increase in demand in goods and services related household items and cars – Kenya has been ranked among the top three African markets in terms of profitability for insurance companies seeking expansion opportunities – Insurance uptake has doubled in the region – Bank lending increased by 5.6 % in the first three months of 2014 compared to last December and is expected to continue its growth 31
  • 32. Emergence of financial markets and access to financial services – Kenyans hold more financial assets than the rest of East Africa; diversification in the market for insurance products 32
  • 33. Emergence of financial markets and access to financial services – Kenya: FinAccess data shows a leap in the uptake of medical, life and education policies which provide social security in Kenya 33
  • 34. Emergence of financial markets and access to financial services – Developers are offering mortgage solutions with banks 34
  • 35. Emergence of financial markets and access to financial services – Mortgages are advertised by different banks all over Nairobi 35
  • 36. Financial service innovation – South Africa has globally top ranked financial services. Mobile banking services and applications are widely in use. – Also in Kenya financial service are using newest innovations on a global level like mobile applications. 36
  • 37. Financial service innovation – The Kenyan company BitPesa plans to use the virtual currency Bitcoins to enable money transfers in Eastern Africa at fair exchange rates. Senders can pay in an amount of money in Bitcoins that will then be paid out by BitPesa to a bank, a mobile phone or in cash. The fee charged is just 3% of the sum transferred. This will create some competition for the usual money transfer providers like Western Union and MoneyGram, who charge high fees and unfavourable exchange rates. BitPesa is currently waiting for approval from the Kenyan authorities to begin its service 37
  • 38. Financial service innovation – Kopo Kopo uses the M-pesa platform to ease mobile payments in East Africa – Kenya: an estimated 162 financial access points for every 100,000 persons’ mainly mobile money agents 38
  • 39. Financial service innovation – MasterCard and Visa go head to head in control of Kenya’s lucrative payments solutions market – South African middle class can live without cash weeks and use credit card basically everywhere: petrol stations, kiosks, restaurants , weekend markets. 39
  • 40. For Africa By Africa (FABA) African solutions to African challenges done the African way. – For more conscious consumers, not only are FABA innovations, products and services more suited to their needs, but in many cases, they are also closely linked to ethical and/or sustainable business practices. This is especially true when these offerings make use of local resources such as homegrown talents, workforces or materials. 40
  • 41. FABA – The ‘Made in Nigeria’ Android tablet Bamboo D700 produced by Debonair Devices and the South African-made Android smartphone by Seemahale Telecoms were both launched in Q4 2013. Both gadgets are completely manufactured in Africa and specifically designed with the African market in mind with features such as dual SIM slots and local pre-loaded apps. 41
  • 42. FABA – Early 2013 saw international brewer SABMiller introduce its second cassava beer on the continent with Eagle Lager in Ghana, in a bid to cater to local tastes. Instead of barley, the lager is made with indigenous cassava: a tuber, which is grown across Africa and is a traditional staple food in many African diets. 42
  • 43. FABA – Released in South Africa in October 2013, Khumba is the country's first ever movie to be produced in both Afrikaans and English. The second full-length movie from Cape Town's Triggerfish Animation Studios, Khumba is a 3D animated story for kids and families featuring a cast of colorful safari characters typical of South Africa's indigenous animals. 43
  • 44. FABA (also related to Urbanization and Dietary changes) – South African retail and fast food chains are bringing services over Sub-Saharan Africa mainly in new shiny shopping malls. – Just some examples of franchising restaurant chains are Spur, Steers, Nando’s , Chicken Licken and Ocean Basket. – Shoprite has currently 131 retail stores in 16 countries throughout Africa. Other big retail chains are Pick n Pay and Woolworths. 44
  • 45. FABA – Kenyan nonprofit Ushahidi successfully secured Kickstarter funding for BRCK, a portable, durable internet connection hub. Designed for use in African countries without constant electricity, BRCK automatically runs off its own eight-hour battery during power cuts and switches between Ethernet, wi-fi and 3G or 4G networks depending on which signal is available. 45
  • 46. Dietary changes – The consumption of food is changing especially in growing middle class – Fast foods have picked up in popularity as city life is becoming faster, e.g. KFC and Subway has opened shops – Concerns about healthy eating are starting to show in the offering of products and the consumption of low fat, low sugar and functional food products – New foods will be demanded by middle class urbanites as people change their eating habits: – The demand for pasta, instant noodles, energy drinks, cheese, wines, bakery products is growing – Now nations of the hungry and obese – Lacking of information about healthy nutrition 46
  • 47. Dietary changes – Hellofood feeds growing appetite for online meal deliveries in Kenya, operations also in Rwanda and Tanzania 47
  • 48. Dietary changes – Kenya: Online nutrition calculator aims to boost kids’ health as obesity rates are getting higher 48
  • 49. Dietary Changes Nations of the hungry and obese – South Africa is heading for a health disaster: more than half the population is living in hunger or at risk of it, while a large percentage of the rest are obese or at risk of developing poor lifestyle-related illnesses. Almost 80 percent of women had a waist circumference of more than the 80cm that is regarded as the cut-off point for obesity. – About one in every five Zambian women aged 15 to 49 years is overweight. In Zambia, reports show that obesity is more prevalent in Lusaka, where close to 33 percent of women are overweight. In Western province- the least obese, only 6 percent of women are overweight. There is also remarkable amount of malnourished children. 49
  • 50. Dietary changes – Taittinger Champagne launches evening of bubbly at Fairmont The Norfolk 50
  • 51. Dietary changes – On trend: Coffee Chains and franchises 51
  • 52. Dietary changes – Kenya: Increasing offering of low fat and health food products in supermarkets 52
  • 53. Wellbeing services - Fitness & Gym – Growing middle class – Growing health consciousness – New status symbols: gym membership, personal trainer, golf , jogging, cycling , (extreme sports in South Africa ) – South Africa is one of world leading countries in fitness industry. – South African large fitness chains are opening luxury studios in neighbouring countries. – Gym memberships have increased over the years. (Nigeria) – Corporate bodies are also acquiring corporate membership for their staff, or introducing some form of wellness program to their entities. (Nigeria) – Health Insurance companies give remarkable discounts for gyms. (South Africa) 53
  • 54. Wellbeing services - Fitness & Gym Nigeria Nigerians have taken more recognition of fitness and exercise. This is a new trend and gradually becoming a status symbol; from long walks, cycling, jogging amongst other forms of exercise. Gym memberships have increased over the years. more and more Nigerians are becoming regular members of gyms. Corporate bodies are also acquiring corporate membership for their staff, or introducing some form of wellness program to their entities. Studio classes are becoming popular. Instructors are becoming creative with classes. A week does not pass without an advertisement of fitness programs: boot camps, dance aerobics, Zumba, salsa etc. Diet Programs are also more popular than ever. There is higher demand for gym facilities and equipment, professional fitness trainers and various fitness programs. 54
  • 55. Wellbeing services - Fitness & Gym – South Africa is one of the leaders of the health-club industry across the world. South African top gym chains are Virgin Active with 105 clubs -and about 600,000 members as well as Planet Fitness with 23 clubs 160,000 members. – Both clubs are offering luxury options and normal high quality club options with modern gym equipment, classes, swimming pools, personal trainers eg. Now they are widening offering also to more simple and cheaper options for lower income classes. – Planet Fitness CEO Manny Rivera said: “We believe the African market can carry at least another 100 sites, throughout Africa.” Chains have already opened fitness centers also in the main cities in neighboring countries : Lusaka (Zambia), Luanda (Angola), Windhoek (Namibia). 55
  • 56. Health care services – Lacking facilities >> Building new hospitals – Upgrading medical equipment, also information systems – Dreaming about PPP , but e.g. Chinese building hospital(s) – Lacking services in rural areas >> e.g. Building new health posts in Zambia – Lacking educated people to provide services >> E.g. Education hospital in Botswana opening soon – Lacking laboratory services – High level private services available in South Africa. – Health tourism to South Africa , India, Germany etc. 56 “Sub-Saharan Africa, a region considered to have the worst healthcare in the world” (KPGM 10.12.2013)
  • 57. Health care services Nigeria’s health care sector does not have enough facilities for treating cancer, kidney and cardiovascular and neurological diseases which are increasing along with the population growth and ageing. According to the coordinator of the National Cancer Prevention Program (NCPP), no fewer than 80,000 Nigerians die from various forms of cancer annually, with an estimated 10 people dying from cancer every hour. Due to lack of hospitals, clinics, technology, doctors and nurses a good number of Nigerians spend millions of dollars on health care in India, Germany and other foreign countries. With the telecommunications boom, there is now the opportunity for Nigeria to upgrade outdated healthcare technology. There is also the need to replace and upgrade medical equipment and facilities. 57
  • 58. Digimedicine – Digitalization of services: mobile health solutions and telemedicine – Some drivers: growing population, long distances, lacking transport infrastructure, high use of mobile phones, availability of smart phones, lacking professionals. – Technology to support the public health systems e.g. advisory functions e.g. for pregnant women, baby help lines – Some trends: Adjusting to local needs, robust equipment, scale of services: from village up to 1 million people, education, FABA – Also hospital information solutions needed ! 58
  • 59. Digimedicine – The Virtual Doctor Project a telemedicine initiative is pioneered in Zambia linking rural clinics across the southern African country with volunteer doctors around the globe using the local broadband network. – The project, now running live in six Zambian sites, use eHealth Opinion software to submit patient files electronically. Clinical officers, trained to screen patients before they see a doctor, access this using Fizzbook laptops. The dust-proof, splash-proof, robust laptops can be easily transported and a battery backup means they can withstand Zambia’s power cuts. – The software allows the clinical officers to build a patient file which is compressed and sent to one of the VDP’s medical experts in Zambia, the UK, U.S., India, Pakistan, China, Nigeria, New Zealand or Malaysia. The file includes the patient’s basic details, medical history, prescription and the specific questions the Zambian clinical officers need answered. – http://africahealthitnews.com/blogs/telemedicine/virtual-doctor- project-telemedicine-project-zambia/ 59
  • 60. Digimedicine When mHealth becomes just health: Mainstreaming mobile technology into national health systems This year, the South African National Department of Health will launch the first coherent nationwide maternal mobile health system. South Africa already has extremely high levels of mobile phone use, increasing the potential of mobile technology to positively impact on maternal and child health. As part of the Campaign on Accelerated Reduction of Maternal and Child Mortality in Africa (CARMMA), one of the targets of this system will be to register 1 million pregnant mothers into a national public health database. The goal is to register all pregnant clients attending public health facilities as early in their pregnancy as possible, voluntarily subscribing them to receive health promotion messages that encourage early attendance at antenatal care visits. 60
  • 61. Digimedicine – Why telemedicine could be the answer to Africa healthcare - Medical education – http://africahealthitnews.com/blogs/current-news/africa- health/why-telemedicine-could-be-the-answer-to-ailing- africa-healthcare/ 61
  • 62. Digimedicine (also related to FABA) – CardioPad, an African invention that enables heart examinations like electrocardiograms (ECG) to be conducted at remote, rural locations on a touch screen tablet and wirelessly transfer the readings to heart specialist anywhere in the country to interpret and render a diagnosis is been used in Cameroon. – http://africahealthitnews.com/blogs/current-news/africa- health/why-telemedicine-could-be-the-answer-to-ailing- africa-healthcare/ 62
  • 63. Demographics – Drastic demographic changes expected in Africa as life expectancy increases – Sub-Saharan Africa's current population, at 856m, is little more than Europe's and a fifth of Asia's. By 2050 it could be almost three times Europe's and by 2100 might even be three-quarters of the size of Asia. By any measure, Africa is by far the fastest-growing continent. 63
  • 64. Demographics – Average Life Expectancy in Africa Increases from 50 to 54 64
  • 65. Demographics – Rwandan life expectancy doubles in last 20 years, study finds. 65
  • 66. Demographics – Africa's populations look set to soar by 2100 66
  • 67. Increasing energy production through fossil fuels and nuclear – Countries are building up their strategy for growing demand - lot of remarkable projects coming – South Africa – Lack of energy for growing demand – large scale need large solutions – coal and nuclear – Angola - Oil is the economy – Mozambique – new energy sources gas and oil game changers for the country – Botswana – how to turn new huge coal reserves to be ecologically accepted – Kenya - large scale coal and geothermal solutions – Tanzania – gas reserves will create new economic activities – Nigeria – privatization of electricity production is a posibility 67
  • 68. Increasing energy production through fossil fuels and nuclear South Africa Coal: Two mega coal power plants are under construction. The Medupi and Kusile stations will add about 10 GW to the electricity capacity in 2014 Oil: South Africa has planned to upgrade its oil refineries to produce cleaner fuels by 2017. The upgrade is estimated to cost R40 billion or USD 4 billion. Most of the technology will be imported. State oil company PetroSA has planned to build a new oil refinery which will be Africa’s biggest with a capacity of 400’ 000 barrels per day Gas: South Africa’s largest chemicals company Sasol is looking at importing more natural gas from Mozambique as gas production there increases. SA has large shale gas reserves and the environmental effects of extracting shale gas is being debated Nuclear: The final decision on 6-8 new nuclear units should be made during 2014 68
  • 69. Increasing energy production through fossil fuels and nuclear South Africa Some signals related to nuclear and fossil fuels: http://www.engineeringnews.co.za/article/nuclear-shale-gas- should-be-part-of-sas-future-power-mix-peters-2013-03-01 http://www.bdlive.co.za/business/energy/2013/09/27/nuclea r-project-going-ahead-bidders-to-be-invited Russian Rosatom is a strong candidate to build the new nuclear power plants: http://www.iol.co.za/business/international/nuclear-deal-not- done-1.1629776 Shale gas could change the energy game in South Africa in the future http://www.bdlive.co.za/business/energy/2014/03/24/shale- gas-can-be-a-game-changer 69
  • 70. Increasing energy production through fossil fuels and nuclear Mozambique Natural gas: Mozambique has an estimated 180 trillion cubic feet of natural gas reserves in the northern Rovuma basin and the coming production of gas will make it one of the biggest global producers of natural gas in the future. The biggest investors in the Mozambican offshore gas industry are American Anadarko and Italian ENI and plans for LNG plants are underway. A USD 10-15 billion LNG plant is planned to Palma, in the northern Mozambique. ENI has also planned a floating LNG rig to be located in its block. http://www.macauhub.com.mo/en/2014/05/09/eni-and-anadarko- may-carry-out-mozambican-natural-gas-liquefaction-project-in- partnership/ Oil: Mozambique is becoming an oil producer in 2014. Oil reserves may be significant. Coal: two large coal-fired power plants projects (Benga 2000 MW and Moatize 2400 MW) 70
  • 71. Increasing energy production through fossil fuels and nuclear Botswana Coal: Botswana has significant coal reserves and some coal power projects are going on or planned for the near future – http://www.engineeringnews.co.za/article/botswana-to- push-power-infrastructure-investment-as-power-imports- phased-out---frost-sullivan-2012-05-18 – http://www.engineeringnews.co.za/article/botswana-can- become-major-energy-corridor-kalahari-energy-2012-06-27 – The increased coal power generation could allow Botswana to export electricity in the future – There are several projects in planning for processing coal to liquid fuel – Botswana is believed to have underground gas in Central Kalahari and the exploration is starting http://www.theafricareport.com/Southern-Africa/botswana- grants-gas-exploration-rights-in-kalahari.html 71
  • 72. Increasing energy production through fossil fuels and nuclear Angola Oil: Angolan state-owned oil company Sonangol targets to increase Angolan oil production from 1.8 million barrels per day to 2.0 million barrels per day by 2015 with new deep- water oilfields coming online. Angolan government has planned to auction 10 onshore blocks during 2014. Sonangol is building a new oil refinery with a capacity of 200 000 bbl/d in Lobito, scheduled to be completed by 2018. There are several upcoming oil projects in Angola. Gas: there is a 700 MW power plant project called Soyo which will be operation in 2016-2017. 72
  • 73. Increasing energy production through fossil fuels and nuclear Kenya Kenya Electricity Generation Company to focus on capacity expansion in coal (and geothermal – see Renewable energy) Kenian tyre manufacturer will invest in a 6MW power plant of its own. Tanzania Tanzania has large natural gas reserves and will build gas-fired power plants. Zanzibar wants to have own power generation. 73
  • 74. Renewable energy – Large scale renewable projects in several countries: Hydro , Wind , Solar – Support in developing country strategy may pay back in project phase – Danish Windenergy Atlas in South Africa – South Africa as leading example : Nearly 4 000 MW of renewable energy capacity is being built and an additional 4 000 MW is to be procured by 2020. Roughly half of the first 4 000 MW is wind and another half solar. 74
  • 75. Renewable energy The Africa Clean Energy Corridor initiative, launched at the International Renewable Energy Agency (Irena) Assembly in January 2013, aims at accelerating expansion of renewable electricity production in Africa. The initiative will focus at first on the Eastern Africa Power Pool (EAPP) and Southern Africa Power Pool (SAPP), extending from Egypt to South Africa, but would have future prospects to be extended to other power pools on the continent. South Africa: Nearly 4 000 MW of renewable energy capacity is being built and an additional 4 000 MW is to be procured by 2020. Roughly half of the first 4 000 MW is wind and another half solar. Of the additional 4 000 MW to be procured by 2020, 800 MW has been allocated to co-generation projects, most of which is likely to be biomass. South Africa was one of the global top 10 receivers of investments into renewable energy in 2012 at USD 5.7 billion, ahead of Brazil and France 75
  • 76. Renewable energy Mozambique plans to increase its power generation capacity with new hydro power plants. There are 8 hydro projects. There is a lot of potential to develop generation by biomass, geothermal and solar, as well. A new renewable energy atlas indicates that projects could be planned: http://www.macauhub.com.mo/en/2014/04/08/mozambique- draws-up-renewable-energy-%E2%80%9Catlas%E2%80%9D Zambia has several hydro power projects. If all of them are realized, the capacity will increase by over 4000 MW. A biofuels industry could emerge in Zambia to help reduce its dependence on imported fuels. http://www.zambian- economist.com/2014/02/economics-of-biofuels.html Kenya is to start building 300MW wind park with partial funding form Finnfund. 76
  • 77. Renewable energy Nigeria has the following targets for renewable sources: – 18% of electricity from renewables by 2025 – 20% of electricity from renewables by 2030 – 100 MW of small hydropower by 2015 and 760 MW by 2025 – 300 MW of solar PV by 2015 and 4000MW by 2025 – 40 MW of wind Power by 2020 – 30 MW of biomass–fired capacity by 2020 77
  • 78. Regional transmission of electricity – There are numerous huge projects in transmission of electricity – The Africa Clean Energy Corridor would create a 5000-mile north-south electricity transmission network stretching from Egypt through Sudan, South Sudan, Ethiopia, Kenya, Malawi, Mozambique, Zambia and Zimbabwe to South Africa. Of particular importance is the Ethiopia - South Africa line to be completed by 2020. – Another priority project is the 2300-mile Central Africa Transmission Corridor linking the Democratic Republic of Congo to South Africa through Angola and Namibia, and north to Chad through Equatorial Guinea, Gabon and Cameroon. – New fossil and hydro power generation units need to be connected to transmission lines – New Renewable energy generation will change the structure inside countries . 78
  • 79. Regional transmission of electricity The Eastern Africa Power Pool (EAPP) will link member countries with HV transmission lines. One example is an 1100 km long 500 kV DC transmission line from Ethiopia to Kenya with a power transfer capacity of 2,000 MW. This is at an advanced stage of implementation. The line would enable these two countries to benefit from the respective advantages of their own power systems, which have strong complementarities: the bulk of Kenya's generation is expected to come from geothermal and fuel fired thermal plants, while Ethiopia possesses a large potential of hydro power. 79
  • 80. Jobs in Africa – Creating jobs is one of leading political targets in many African countries – Countries are on the way from resource based economies to be manufacturing countries. – There is high demand for vocational training to fill new jobs with skilled people 80
  • 81. Jobs in Africa – Creating jobs is one of leading political targets in many African countries – Countries are on the way from resource based economies to be manufacturing countries. – There is high demand for vocational training to fill new jobs with skilled people – Infrastructure investments, mining sector growth and developing agriculture and food production are on going jobs creators 81
  • 82. Jobs in Africa – Creating local business – South Africa is investing strongly in energy production and infrastructure to create jobs. – There is demand of local content in public project tenderings. Some new results: – Establishing solar panel manufacturing company – Train factory is under construction. – Botswana moved their diamond sales from London to Gaborone so that activity would create jobs in tourism and services in Botswana. 82
  • 83. Jobs in Africa – There is competition in attracting mining investments for creating jobs. Many of the African countries have made new mining laws to attract investments. – Countries like Botswana, Namibia and South Africa which have mining industry are putting their efforts now in creating beneficiation of minerals in their countries. – Global mining companies over Africa are activating and educating local suppliers. Drivers for this are social responsibility, laws and need for suppliers in new productions regions. – South African mining companies have to purchase high amount of their supplies from local companies and companies with 25 % of black ownership. If targets are not reached mining licenses are in danger. 83
  • 84. Jobs in Africa – Creating employment through green jobs – the Youth Jobs in Waste Programme, which will create 3577 jobs once it is fully operational in the provinces, and the Wastepreneur programme, which is being implemented through the department’s Green Fund and aims to create job opportunities for the youth and women. The Wastepreneur programme has created about 2 350 jobs to date, with a final target of creating 4400 jobs by the time the project is fully operational in KwaZulu-Natal and Gauteng in South Africa 84
  • 85. Jobs in Africa – Unemployed Portuguese find jobs in Africa – Many unemployed from Portugal move to Angola or Mozambique due to work opportunities. There used to be Africans coming to Europe to work, but now the stream seems to be shifting at least in the depression struck countries. Economies in Mozambique and Angola are growing strongly . Skilled workforce is needed to get new resources like gas and coal in to use. 85
  • 86. Education Empowering – Health care education turns towards mobile and social media – New value added manufacturing demands people with skills that not exist in the market – vocational training models are searched e.g. from Germany – Multi national companies provide basic and professional education as part of their corporate social responsibility programs 86
  • 87. Thank you! Finpro Eastern Africa: Esa Rantanen, Henrik Reuhkala, Velma Obuya Finpro Southern Africa: Heta Pyhälahti, Eetu Kielo, Valtteri Vuorenpää Finpro Western Africa: Olu Raheem Finpro Region Finland: Anna Erkkilä, Juha Wilen, Niko Herlin, Sonja Antell, Virpi Vaittinen 87

×