3. Southern Africa
Diamondsgoodbasefor economics
Finland has special status
International mining investments as driver
Oil country start to develop
Developing with new gas and coal resources
Developed manufacturing country in BRICS.
4. AboutSouthern Africancountries
Country
Botswana
Namibia
Zambia
Angola
Mozambique
South Africa
Diamonds good based for economics
Finland has special status.
International mining investments as driver.
Oil countrystart to develop.
Developing withnew gas and coal resources
Developed manufacturingcountry in BRICS.
Population, million, 2013
2,0
2,3
14,5
21,5
25,8
53,0
GDP billionUSD
15 e
12
22
122
15
354
GDB(PPP) per CapitaUSD, 2013
8 200
1 800
6 000 e
1 200
11 500
GrossDomesticProduct (GDP) growthin 2013, %
5.9
4.4
6.4
6.8
7.1
1.9
Mobilecelluralsubscriptionsper 100 people, 2013
161
110
72
48
147
Source: World Bank
5. South Africa–Developedmanufacturingcountry
•Globally top finance and banking sector
•Good Infrastructure
•Distribution structures in place, competition exists
•Large middle class, also upper class consumer market
•Unequal –unemployment 25% -BBBEE
•Gate to Southern Africa
•EU most important partner in FDI -investments and trade
•One of leading investors in African Continent (top 5)
6. South Africa–somemarketcharacteristics
•Mining sector globally remarkable
–High quality research, machinery manufacturing
–Modernizationneededfromlabour and resourceintensivemode
•Car manufacturing: BMW, Mercedes Benz,…
•Large infrastructure investment program: rail, ports..
–Creates train manufacturing, component manufacturing
•Demand for cleantech: water treatment, waste management, energy efficiency
•Demands for local content , but remarkable importing
7. South Africa–somemarketcharacteristics
•Provides high quality private health care services for Southern Africa
•Export quality agriculture –strong food producing sector
•Large retail chains investing also to neighboring countries
•Variety of South African fast food franchising chains
•South Africahasabout20 millionsmartphoneusers, growthof users27% in 2014. Note: AfriComin November.
8. Infrastructure
•Economical growth, growth in import and export, growing investments specially in mining create great need for better infrastructure.
•South Africa has good infrastructure all over the country, but remarkable investments
•In Zambia and Mozambique strong role of China and mining companies
–Bringing investments, engineering, technology, local and foreign workforce in use
•Port investments in several countries:
–Luanda, Walvis Bay, Durban, Richards Bay …
–Differences in decision making and purchasing
•Walvis Bay Corridor group with Namibianauthorities makes one week benchmarking visit to Finland in November.
9. Mining sectoras driver
•Several countries have renewed the mining laws to attract new investments , but also to ensure the local income
•International mining companies have strong influence in development (e.g. Vale in Mozambique, Chinese companies )
•South Africa is one of leading mining countries globally
–Automation, underground mining, energy efficiency, water efficiency
–Targeting to create beneficiation of minerals in South Africa
•Zambiahas attracted several mining international mining investments
–Not only a mine with new technology , but building up infrastructure, mining villages , services etc.
•Botswanamoved diamond trade from UK to Botswana.
–Look for diversification with new mines specially large coal resources
•Namibiaopening new mines
•Small scale mining often for construction materials
•Illegal mining creates environmental and security challenges
11. Someenergysectordevelopmentin Southern Africa
•South Africa is close to energy crisis , but still importing to neighboring countries
–Two large coal power plants getting ready (10 GW)
–Planning to build more nuclear power
–Remarkable cleantechmarket:
–IPP programs for renewable energy production (up to 4000MW *2 by 2020 ), energy efficiency , smart grids
–Notice local manufacturing possibilities and incentives
•Botswana , Namibia remarkable electricity import from South Africa
–now high interest for own production: coal and gas power plants
•Zambia–large amount of hydropower projects in pipeline
•Mozambiqueis building up globally remarkable gas and coal production,
new power plans and transmission lines
12. EEP-SEA Energia ja ympäristöohjelma
Ohjelman nimiEnergy and Environment Partnership Programme, (EEP-SEA)
TavoiteVahvistaaenergiaturvaaja vähentää
energiaköyhyyttälisäämälläenergiansaantia, energiatehokkuutta ja uusiutuvan energian käyttöä
KohdealueEtelä-Afrikka, Lesotho, Swazimaa, Botswana, Mosambik, Namibia, Sambia, Tansania, Kenia, Uganda, Ruanda, Burundi & Seychellit
Kesto & Budjetti 12/2017 asti & 34 MEUR (II vaihe)
Lisäarvo yrityksilleOhjelma rahoittaa innovatiivisia projekteja uusiutuvan energian ja energiatehokkuuden sektoreilla. Rahoitusta voi hakea paikallispartnerin kanssa kahden rahoitusikkunan kautta
(Window1: innovation& Window2: marketcreation)
Lisätietoa www.eepafrica.org
12
13. Thankyou!
Contact about Southern Africa:
Heta Pyhälahti
Headof Trade Center Johannesburg
Mobile +27 72 66 11 287
Heta.pyhalahti@finpro.fi
