Volume 10, June 2016
2016 OPINION PIECES
INDUSTRY LEADER ARTICLES
Africa Energy Yearbook 2016
from the Ministry of Energy & Water Mali, ONEE in Morocco and Fieldstone Africa
from Reykjavik Geothermal, Aggreko & Standard Bank
A special chapter dedicated to OFF GRID ENERGY SOLUTIONS
Power projects from across the continent www.energynet.co.uk
THE POTENTIAL OF GAS IN AFRICA Sponsored by
In association with
CONTENTS ROADMAPS FOR SUCCESS
YEARBOOK PROFILE PIECE TAS ANVARIPOUR, GLOBAL PARTNER FOR ENERGY INFRASTRUCTURE, THE ABRAAJ GROUP 21
SUB-SAHARAN AFRICA:
Implications of Market-Based Principles on Grid Operations and Infrastructure Investment Decisions BART TSALA, PRESIDENT, THE KIDIAGA GROUP
23
YEARBOOK PROFILE PIECE
YEARBOOK PROFILE PIECE JASON HARLAN, CHIEF EXECUTIVE OFFICER, FIELDSTONE AFRICA 9
‘POWER’ TO THE PEOPLE OF AFRICA –
THE POWER OF PARTNERSHIPS
social risk management and its returns
JÓN ÖRN JÓNSSON, COUNTRY MANAGER ETHIOPIA, REYKJAVIK GEOTHERMAL 31
STUART HEATHER-CLARK, PARTNER AND POWER SECTOR LEAD, ERM SUB-SAHARAN AFRICA DEON WESSELS, SOCIAL PRACTICE LEAD, ERM SOUTHERN AFRICA
YEARBOOK PROFILE PIECE
TUNDE MORAKINYO, PARTNER, ERM 11
YEARBOOK PROFILE PIECE H.E. HON MAMADOU FRANKALY KEITA, MINISTER OF ENERGY AND WATER OF THE REPUBLIC OF MALI
OLUSOLA LAWSON, INVESTMENT DIRECTOR AND HEAD OF WEST AFRICA, AFRICA INFRASTRUCTURE 27 INVESTMENT MANAGERS (AIIM)
TARIK HAMANE, DIRECTOR, POWER GENERATION PROJECTS AND PROGRAMS, ONEE, MOROCCO 35
A SNAPSHOT OF MOROCCO’S POWER SECTOR 15
TARIK HAMANE, DIRECTOR, POWER GENERATION PROJECTS AND PROGRAMS, ONEE, MOROCCO
39
TO MEET ITS BIG ENERGY CHALLENGES,
THE PARIS AGREEMENT:
Africa needs to think differently
the future of renewables in East Africa
MIKE PEO, HEAD OF INFRASTRUCTURE, ENERGY AND TELECOMMUNICATIONS: NEDBANK CORPORATE AND INVESTMENT BANKING 17
ADAM LOVETT, PARTNER, NORTON ROSE FULBRIGHT LAURA KIWELU, SENIOR ASSOCIATE, NORTON ROSE FULBRIGHT 43
AFRICA ENERGY YEARBOOK – Volume 10, June 2016 Published by: EnergyNet Limited Fulham Green Bedford House 69-79 Fulham High Street London SW6 3JW
Editor: Articles, Interviews & Project lists Amy Offord Amy.offord@EnergyNet.co.uk +44 (0) 20 7384 8068 Artwork & Design: Catherine van Dyk Clear Impressions Publishing & Print Media Design clearimpressions@outlook.com +27 79 344 1649
Copyright c 2016 EnergyNet Limited ISBN 978-0-9551943-7-5 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of EnergyNet Limited.
www.energynet.co.uk 2016 Africa Energy Yearbook
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CONTENTS
THE OUTLOOK FOR IPPS HOW CAN IPP INVESTMENTS BE ACCELERATED
on the African continent?
GARY RADEMEYER, DIRECTOR, NORTON ROSE FULBRIGHT
49
YEARBOOK PROFILE PIECE JEROME RINGO, CHIEF EXECUTIVE OFFICER AND PRESIDENT, ZOETIC GLOBAL 55
TO IPP… OR NOT TO IPP…
That is the question.
NIGEL WHITTAKER, MANAGING DIRECTOR, SONGAS LIMITED
57
YEARBOOK PROFILE PIECE REDA EL CHAAR, CHAIRMAN, ACCESS POWER
61
YEARBOOK PROFILE PIECE
YEARBOOK PROFILE PIECE
DR DAVID LADIPO, DIRECTOR, AMAYA CAPITAL & MANAGING DIRECTOR, AZURA POWER WEST AFRICA LIMITED
YOUSUF HAFFEJEE, VICE PRESIDENT AND HEAD OF BUSINESS DEVELOPMENT, MARUBENI MIDDLE-EAST & AFRICA POWER LIMITED 63
47
OFF THE GRID – PLUGGING THE POWER GAP PAY-AS-YOU-GO POWER IS FAST EMERGING
as a viable off-grid solution
DAVID HUMPHREY, GLOBAL HEAD: POWER & INFRASTRUCTURE, STANDARD BANK 87
DEVELOPING COUNTRIES UNPLUGGED SERDAR KUMBASAR, BUSINESS DEVELOPMENT EXPERT, KARPOWERSHIP 89
AN OFFGRID SUCCESS STORY TWO-TONE ENERGY STRATEGIES
to keep pace with change
JAMES SHEPHERD, MANAGING DIRECTOR, AFRICA, AGGREKO 81
for a South African School THE ENERGYNET TEAM
93
MOBILIZING PRIVATE INVESTMENTS IN RENEWABLE ENERGY:
How can we make it work? YEARBOOK PROFILE PIECE AKON, SAMBA BATHILY AND THIONE NIANG, COFOUNDERS OF SOLEKTRA INTERNATIONAL, THE COMPANY THAT LAUNCHED THE AKON LIGHTING AFRICA PROGRAMME 85
4
JAN MARTIN WITTE, HEAD OF DIVISION, INFRASTRUCTURE SOUTHERN AFRICA, KFW DEVELOPMENT BANK AMELIE D’SOUZA, PRINCIPAL PROJECT MANAGER, KFW DEVELOPMENT BANK 97
2016 Africa Energy Yearbook
CONTENTS
THE POTENTIAL OF GAS GAS TO POWER PROJECTS IN AFRICA:
A tale of two scales
JAMES ALLPRESS, MANAGING EDITOR, GAS STRATEGIES 103
YEARBOOK PROFILE PIECE WILLEM THERON, GENERAL MANAGER, SOUTHERN AFRICAN ENERGY UNIT, ESKOM 109
BRIDGING AFRICA’S ENERGY GAP
– LNG to power as a catalyst for unlocking host country value and raising large scale investment? DR. KATAN HIRACHAND, MANAGING DIRECTOR, ADVISORY AND PROJECT FINANCE – ENERGY, EMEA, SOCIETE GENERALE CORPORATE & INVESTMENT BANKING
YEARBOOK PROFILE PIECE
JOHN SMELCER, DIRECTOR: HEAD OF OIL & GAS SECTOR GROUP, WEBBER WENTZEL 111
MARTIN KALTER, VICE PRESIDENT, MAN DIESEL & TURBO 121
ENHANCING FLEXIBLE GENERATION ACROSS AFRICA
THE POTENTIAL IMPACT OF LNG
on Gas to Power in Africa
through LNG-to-power
CHRIS DOWN, PARTNER, NORTON ROSE FULBRIGHT
PAUL EARDLEY-TAYLOR, HEAD OF OIL & GAS COVERAGE SOUTHERN AFRICA, STANDARD BANK
CLAIRE WILBY, ASSOCIATE, NORTON ROSE FULBRIGHT 117
KUMBIRAI GUNDANI, ANALYST: OIL & GAS, STANDARD BANK 123
Advertisers AFRICAN BUSINESS
96
AFRICA OUTLOOK
130
AFRICAN REVIEW
102
ANDRITZ HYDRO
inSIDE BACK COVER
ESI AFRICA
128
GLOBELEQ
56
MANITOBA HYDRO
CONSTRUCTION REVIEW
50
DBSA
38
2016 Africa Energy Yearbook
MIZUHO
2
inSIDE FRONT COVER, INSIDE BACK COVER
WORLD FUEL SERVICES
30
5
CONTENTS
Projects ANGOLA
65
MOROCCO
71
BOTSWANA
65
MOZAMBIQUE
72
BURKINA FASO
66
NAMIBIA
73
CONGO (KINSHASA)
66
NIGERIA
74
EGYPT
66
RWANDA
75
ETHIOPIA
67
SOUTH AFRICA
76
GHANA
68
TANZANIA
77
KENYA
69
UGANDA
78
MALAWI
71
ZAMBIA
78
MALI
71
With Special Thanks To Energynet’s Arts: Energy Partner NAOMI WANJIKU GAKUNGA NDUMO- THE GIRLS’ DANCE 20
RUEBEN UGBINE MASKED FACE 80
SAM OVRAITI
FRANCIS UDUH
PRIDE REGAINED
28
HIDDEN TREASURES 84
FIDELIS ODOGWU ELEMENTS OF BEAUTY 32/42
WIZ KUDOWOR
DISEYE TANTUA LOOK AND LAUGH 64
BEN IBEBE
SAM EBOHON REACH OUT 4 136
OWUSU ANKOMAH
6
NUNYA TEFE – WISDOM PLACE 106
AWE OF A CITY
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MICROCRON BEGINS NO. 16 128
2016 Africa Energy Yearbook
Through our six infrastructure Funds, African Infrastructure Investment Managers (AIIM) participates in the financing of infrastructure projects, and also invests in companies in the infrastructure sector.�
ROADMAPS FOR SUCCESS
YEARBOOK PROFILE PIECE OLUSOLA LAWSON, INVESTMENT DIRECTOR AND HEAD OF WEST AFRICA, AFRICA INFRASTRUCTURE INVESTMENT MANAGERS (AIIM)
Olusola Lawson is the Investment Director for AIIM’s activities in West Africa and is based in Lagos where he is responsible for AIIM’s infrastructure investment activities and business development in the region. Sola led the AIIM funds’ investment into IHS Towers and Nigeria’s Azura-Edo IPP, and played a key role in the investment into Cenpower Generation Company in Ghana. Previously Sola was an Investment Manager in Macquarie Group’s European Infrastructure Funds team in London where he worked on a number of European infrastructure transactions in a principal capacity, and played a key role in portfolio company management, primarily in the petrochemical storage and transportation space. Sola has a BSc in Economics from University College, London.
What are the main challenges associated with managing and investing private equity infrastructure funds in Africa? Through our six infrastructure Funds, African Infrastructure Investment Managers (AIIM) participates in the financing of infrastructure projects, and also invests in companies in the infrastructure sector. AIIM has experience as both a project developer and an equity investor across eleven jurisdictions in Africa and has gained substantial onthe-ground experience and tackled many challenges since its inception in 2000. Historically, infrastructure projects in Africa have been characterised by delays and cost overruns. Through the participation of the private sector, investors are able to bring experience in assessing the risks and the appropriate allocation of these risks to the various counterparties – developers, contractors, lenders, governments and investors, which supports the realisation of a successful infrastructure project. Alignment of interests across stakeholders – from state entities and local communities to construction and financing parties – is key. In an environment such as Africa, where the private participation in infrastructure is still at a nascent stage, it is critical to ensure that all parties fully understand their obligations and rights in the development of these projects. The successful management of infrastructure assets requires private investors to be cognisant of the needs and priorities of all stakeholders, particularly members of the communities that the investments serve. From a project developer point of view, 2016 Africa Energy Yearbook
one of the main challenges is the length of time required to develop large-scale, capital-intensive infrastructure projects as they are both time consuming and resource intensive. Persistence is key in this regard. Some projects can take up to eight to ten years to achieve financial close due in part to the requirements of numerous permits, licences, exemptions and approvals from a range of government institutions. Focusing on the long term sustainability of projects where there is a significant supply / demand gap supports alignment between developers and the governments and ultimately the success of the project. What advice would you give to new investors on the continent? AIIM believes that Africa offers a compelling infrastructure investment opportunity despite the current headwinds. Strong fundamentals underpinned by the GDP growth trajectory, favourable demographics and an enabling environment for private investment continue to support an increase in both the number of infrastructure consumers and the projects required to address this increased demand. The most compelling argument for investing in African infrastructure is that it focuses on the region’s fundamental needs. Underpinned by a significant deficit in infrastructure spending required to address the quality of existing infrastructure, and the strong fundamentals supporting further growth of industry, infrastructure investment on the continent provides investors with a strategy which is largely insulated from certain externalities and macro-economic headwinds that may dislocate other sectors.
The African continent is diverse with its countries differing significantly in terms of growth rates, economy size, political stability and levels of financial sophistication. In addition, the infrastructure investment spectrum has a broad range of risk/return profiles and characteristics. There is therefore no onesize-fits all approach. Local knowledge and experience is critical to developing a portfolio through which strong riskadjusted returns can be delivered. As with any investment opportunity, success is determined by the quality of the manager of these assets – their track record, investment philosophy and process and the investment resources available to them.
Africa offers a compelling infrastructure investment opportunity despite the current headwinds.” 27
Morocco is the most ambitious country in the entire MENA region regarding the penetration of renewables into its energy mix. This is a testimony that Morocco is not just a visionary in the region, but also a successful pioneer in the global transition to renewables.�
ROADMAPS FOR SUCCESS
YEARBOOK PROFILE PIECE TARIK HAMANE, DIRECTOR, POWER GENERATION PROJECTS AND PROGRAMS, ONEE, MOROCCO
Tarik HAMANE is the Director of Power Generation Projects and Programs of the Office National of Electricity and Potable Water “ONEE” (the Moroccan Electricity and Drinking Water Utility). Tarik HAMANE has more than 10 years managerial experience in leading the development of large scale power generation projects in Morocco, including IPPs and PPP projects and for different fuel and technologies (Thermal Power Plants “Clean Coal and Gas”) and (Renewables “Wind and Solar”). Tarik has also been involved in securing the ancillary power infrastructure (Port and Storage) as well as successfully managing land acquisition processes. Key projects include landmark ventures that served as a guiding platforms for a wider implementation of energy projects in Morocco: Tarfaya wind farm 301MW, the Integrated Wind Project 850MW, Taza wind farm 150MW, Safi Coal Fired Power Plant 1400MW, Jorf Lasfar Coal Fired Power Plant 700MW, Extension of Jorf Lasfar Port. Before joining ONEE, Tarik has served as a R&D Engineer at CNRS in France and CERN in Geneva. Mr. HAMANE has an MBA from Ecole des Ponts et Chaussées Paris, France, a Master’s Degree in Information Systems from Ecole Centrale and INSA Lyon, France, and a MSc degree in Electrical Engineering and in Automatic from Ecole Centrale-Supelec (Ecole Supérieure d’Electricité) Paris and from INSA Lyon.
How important is the role of international investment in helping Morocco to accelerate the delivery of affordable and reliable power?
that the trend will continue in the future with a growth of electricity demand around 6%, and electricity demand in the country is projected to quadruple by 2030.
Over the last 18 years, Morocco had taken giant strides to achieve universal energy access for the Moroccan population (compare this to the estimated 25 per cent energy access in sub-Saharan Africa).
Implementing new power generation plants requires a huge amount of investment. In 1994 we launched our first IPP project, Jorf Lasfar- a coal-based power plant (the first IPP project to be developed in Africa). From that date, the Moroccan state and ONEE elected to develop large-scale power generation projects under IPP framework with a clear positioning of the private sector in power generation. From the mid-90s onwards, Morocco has set the pace for IPPs development in the region.
These everlasting efforts along with a growing economy and population growth are now fueling domestic demand for electricity (which has grown around 6.5 per cent per annum during the last years). This steady high growth requires a roll out of new generation capacities. It is expected
Moroccan banks are quite strong and sophisticated. They have hence contributed very significantly to the financing of many IPPs ventures recently.” 2016 Africa Energy Yearbook
Project finance is a cornerstone for success when it comes to developing IPPs in any country. I can mention for instance the last projects that we have developed: • the 850 MW integrated wind project (the largest onshore tender worldwide) which was awarded a couple of weeks ago with 1.2 billion dollars in financing, and a worldwide record-shattering wind tariff; • the Safi project which, a clean coalfired power plant of 1386MW requiring more than 2.6 billion dollars; • Tarfaya Wind farm, 301MW, the largest wind farm in Africa, under operation from 2014 with an associated investment around USD 600 million; • Noor Ouarzazate I, a Solar CSP Power Plant of 160MW, the largest one in the World, under operation from end of 2015; • Jorf Lasfar expansions, a clean coalfired power plant of 700MW, under operation from 2014; this project required 1.5 billion dollars: • Other projects under construction or financial close (Noor Ouarzazate II& III “CSP Power Plants 200MW+ 150MW”, Taza Wind Farm 150 MW, …). 35
OFF THE GRID – PLUGGING THE POWER GAP
PAY-AS-YOU-GO POWER IS FAST EMERGING as a viable off-grid solution
David Humphrey, Global Head: Power & Infrastructure at Standard Bank As global sector head, Power and Infrastructure, David is responsible for developing Standard Bank’s involvement in the growth of this core sector in Africa, and helping clients expand their activities into or within Africa. David has had a career in asset based deals in Europe and Africa, and has specialised in rail and telecoms. As global head, David oversees industries such as conventional power, renewable energy, construction and cement, as well as transport. He was formerly employed at the Strategic Rail Authority and then Babcock & Brown (B&B) in the UK, specialising in rail finance. He was involved in many of the major projects in the late 1990’s and 2000’s, including the West and East Coast Main Line developments in the UK, and investment in the rolling stock market in Europe, including the purchase of Angel Trains from RBS in 2008.
With power shortages hampering economic and social development across much of sub-Saharan Africa, new and existing technologies are coming together to allow alternative off grid solutions to complement the conventional grid system in getting power to the largest number of people quickly.
B
uilding a fully fit for purpose electrified grid in Africa has become increasingly challenging and the downturn in the commodity cycle in the last two years has added to the challenge. Capital outflows from Africa have resulted in the continent having significantly weaker balance sheets to fund capital expenditure, and this has been further exacerbated by the expectation that a stronger US economy will cause an increase in dollar interest rates, and the increase in repayments will further weaken emerging economies saddled with dollar debt. We now have a vicious circle – the ‘African emerging market problem’, weakening currencies, capital outflows and reduced investment capacity, each spurring the other on in an unfortunate way. The hard choices about infrastructure delivery that emerging market economies need to take have now arrived at Africa’s doorstep. Governments do not have the balance sheet to fund all necessary investment. What needs to be done? The private sector needs to take on most of the investment, but
2016 Africa Energy Yearbook
against sound and reliable regulatory and legal frameworks that investors can trust. Most importantly, infrastructure investment needs to be in local currency. This means multilaterals (IFC, EIB, AfDB etc) and DFIs must decrease the amount of dollar lending and increase the amount of local currency lending in African countries. However this will take some time. Government to government loans should not be discounted either, but here again local currency funding by the developed market Government (e.g. China, US, EU) should become the norm, not the exception. Certainly the successes achieved in South Africa’s renewable programme can be replicated across Africa, where opportunities abound for solar, wind, hydro and gas projects, but where only 20% of people are connected to power grids. Innovative models for project finance are going to be needed to help fast track energy projects in Africa and bridge gaps that existed previously. 87
PROJECTS
BURKINA FASO Project Name: Zagtouli Plant Type of project: Renewable Power Description: Burkina Faso will start the construction of the Zagtouli solar plant, one of the largest photovoltaic solar power plants in sub-Saharan Africa, with an investment of about 46 billion CFA francs, APA learns Wednesday from the Department of energy.The now completed overall funding is provided by the European Investment Bank (CFAF 15 billion), the French Development Agency (FCFA 14.7 billion) and the EU (16.3 billion FCFA). Situated on a site of about 60 hectares located in Zagtouli, near the capital, the power plant (with a capacity of 33 MW) “will, at completion, bring viable and realistic solutions to the challenges in the field of energy, especially in the electricity sub-sector, and will help reduce costs and increase the reliability of electricity supply and further open the way for other solar energy projects in the countryâ€, according to the Burkina Faso authorities. As a landlocked country with few financial resources to invest in energy infrastructure, Burkina Faso is characterized by heavy dependence on energy. Source: http://en.starafrica.com/news/bfaso-secures-46bn-fcfa-for-to-build-solar-plant.html Budget Size (USD): 26m | Fuel Source: Solar | Generation Capacity (MGW): 33 | Investors & Development Partners: European Investment Bank (CFAF), the French Development Agency | Offtaker: Utility | Project Status: Under Construction Project Name: Burkina Scatec Solar PV Park Type of project: Renewable Power Description: Burkina Faso is commencing construction work on a 33-MW solar photovoltaic (PV) power facility in the northern part of the West African nation, news agency APA reported on Wednesday, quoting the Department of Energy. The XOF-46-billion (USD 78.2m/EUR 70m) project will be implemented with XOF 15 million in financing from the European Investment Bank (EIB), XOF 14.7 million from the French Development Agency and XOF 16.3 million from the European Union (EU). EIB announced it would lend the above-mentioned sum in September 2014. The plant will be built at Zagtouli on the outskirts of Ouagadougou, the African country’s capital city. National electric utility SONABEL will operate the solar park once it is completed. Nearly half of Burkina Faso’s current power needs are met with imports from Ivory Coast and Ghana, the report mentions. Source: http://renewables.seenews.com/news/solar-park-of-33-mw-in-burkina-faso-enters-construction-phase-report-518383 Budget Size (USD): 78m | Fuel Source: Solar | Generation Capacity (MGW): 33 | Investors & Development Partners: Scatec Solar | Offtaker: Utility Project Status: Under Construction
CONGO (KINSHASA) Project Name: Inga 3 Type of project: Renewable Power Description: With support from the World Bank, the Democratic Republic of Congo (DRC) has proposed to develop Inga 3 on the Congo River. The project will consist of a dam and a 4,500MW hydroelectric plant at Inga Falls. Inga 3 comes as the first phase of the construction of the Grand Inga hydropower project, located 225 km from Kinshasa, and 60 km upstream of the mouth of the Congo into the Atlantic Ocean. Once completed, the final project would have a generation capacity of 40,000 MW. Source: http://www.internationalrivers.org/campaigns/the-inga-3-hydropower-project Budget Size (USD): 1Bn+ | Fuel Source: Hydro | Generation Capacity (MGW): 40 000 | Investors & Development Partners: World Bank Offtaker: Utility | Project Status: Out to Tender
EGYPT Project Name: Helwan South Power Project Type of project: Conventional Power Description: South Helwan project is designed to include 3x650 MW supercritical steam thermal power plant for interconnection to the National Unified Power System (NUPS) through the new 500 KV GIS Switchyard facility. The power block comprises three identical Rankine cycle turbine generator units, each with a nominal rated capacity of 650 MW. The units are capable of generating rated capacity using natural gas, residual (mazout) oil, or a combination of both. The three-unit plant arrangement includes an enclosed turbine building, an open boiler structure, a common control room, and all associated structures and facilities. Source: http://www.pgesco.com/south-helwan-supercritical-power-plant-3x650-mw/ Budget Size (USD): 500 – 1Bn | Fuel Source: Gas | Generation Capacity (MGW): 1 950 | Investors & Development Partners: AfDB Offtaker: Utility | Project Status: Under Construction Project Name: Philadelphia Solar 50 MW PV project Type of project: Renewable Power Description: Jordanian PV developer and manufacturer Philadelphia Solar has signed a memorandum of understanting with Egypt’s New and Renewable Energy Authority (NREA) to build a 50 MW-ac PV plant as part of the first wave of projects offered by the Egyptian government under its feed-in tariff (FiT) program. Source: http://www.pv-magazine.com/news/details/beitrag/egypt--philadelphia-signs-50-mw-agreement-_100018667/#axzz3YcBarhXo Fuel Source: Solar | Generation Capacity (MGW): 50 | Investors & Development Partners: Philadelphia Solar, Egypt’s New and Renewable Energy Authority (NREA), Egyptian Electricity Transmission Company (EETC) | Offtaker: Utility | Project Status: Feasability
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I was privileged to mentor numerous young talents and it makes me so proud to see how they excel in the industry operating at full capacity.�
THE POTENTIAL OF GAS
YEARBOOK PROFILE PIECE WILLEM THERON, GENERAL MANAGER, SOUTHERN AFRICAN ENERGY UNIT, ESKOM
Mr Willem JC Theron is employed by Eskom, South Africa, as a General Manager in the Southern African Energy Unit. Mr Theron played a pro-active role in the development of energy trading in the Southern African Power Pool and the implementation of Eskom’s strategic direction in Southern Africa and beyond. Mr Theron has been with Eskom for 36 years and holds various tertiary qualifications in engineering and commerce. Prior to him establishing the Eskom’s International Energy Trading function in 1995, he focussed on system operations at Eskom’s National Control Centre. Mr Theron is currently accountable for all new business development opportunities in the SADC Region which include MPNK, STE and other Hydro and Gas projects in Mozambique. He also serves as a member and official on various SAPP governance committees and is passionate about the socio economic empowerment of our people and the industrialisation of the Africa as a whole.
Willem, firstly congratulations on a career that has truly turned the lights on. You have worked tirelessly with your colleagues in the service of the public in a career spanning 36 years – was it worth it? Unequivocally yes – reflecting on what has been achieved during this period, it is huge! Being so close to the day-today business operations sometimes we don’t appreciate what has been done. Most notably was the evolution and transformation of the electricity market in the SADC, which was a massive step for the region. I am so proud of the whole SADC ESI who embrace challenges, search for opportunities and make ends meet with minimal resources. African utilities are so noble in their achievements, which is only understood when we return from yet another “capacity building” trip abroad only to realise that our experience and knowledge are deep, yet taken for granted as normal by ourselves. With such a long history of working with great people, both at home in South Africa and regionally, what has given you most pride? Through the years I have learnt that growth is impossible without trust relationships that have been forged between people over years. This culminates in respect that provides comfort and peace of mind that we as a community can learn from each other, and can learn to depend on one another 2016 Africa Energy Yearbook
to survive any challenge emanating from the changes in the industry. And through this, I was privileged to mentor numerous young talents and it makes me so proud to see how they excel in the industry operating at full capacity. I am also taking pride in that these strong foundations that have been laid will support the growth and industrialisation of Africa, making us a continent to contend with. Blue Ocean Strategy is to some a business leader’s bible – what kind of thinking does it take to survive in the electricity sector of Africa and other growing economies?
I see a future where the market space becomes increasingly less defined.”
The concept played a determining role in my decision to detach myself from the traditional electricity utility corporate world that is normally operated by defined rules, procedures, lengthy decision-making processes and market boundaries. The normal day-to-day utility conversations centre around competition, price wars, market share, loss of revenue, commoditisation, benchmarking, strategic positioning and value addition. The business environment which most business strategy and management has been based on is evolving or disappearing. Some of this change may be due to changes in culture, increasing globalisation, the rapid rate of availability of new information, the role of changing demographics and the mere size of the infrastructure development challenges. I see a future where the market space becomes increasingly less defined, driven greater by innovation, supported by trust relationships and establishing and growing personal networks. If we are serious about the industrialisation of Africa and providing universal access to electricity, companies must stop competing with each other and live by the old adage, “the only way to beat the competition is to stop trying to beat the competition”. The focus should move to value innovation, pooling of resources and efforts, knowing full well that we are creating new opportunities for all in the ESI.
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Ben Ibebe | Awe of a City | 2014 | Oil on canvas | 128 x 102cm For price contact Aabru Art / art@aabru.co.uk/ +44 7847 244 217
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