Journal of African Business Issue 5

AFRICAN BUSINESS

AFRICAN MINING IN THE ESG ERA

Investing in the Energy Transition, ESG and the Economies

A NEW ENERGY BANK FOR AFRICAN OIL AND GAS

WHAT DOES THE AFCFTA

MEAN FOR IP?

COUNTRY PROFILES: ANGOLA & MAURITIUS

MITIGATING THE GLOBAL LOGISTICS CRUNCH

Diversification is the way to go for African business

THE WINDS OF ENERGY CHANGE ARE BLOWING IN AFRICA

THE CASE FOR CAPTIVE POWER

Aggreko’s MAX SCHIFF lays out the argument for captive power as an energy solution in many and varied African contexts

Future Fit –The year to be acknowledged

The Gateway to learning is infinite… Get ahead of the curve and stand out from amongst the crowd through Executive Education at Wits Business School. Develop cutting-edge skills for revolutionary leaders.

FOREWORD

Journal of African Business

A unique guide to business and investment in Africa.

Welcome to T he Journal of African Business. The first issue of the journal was published in 2020 as an annual publication. Since then, the quarterly format has been adopted, giving our team more opportunities to bring readers up-to-date information and opinions and offer our clients increased exposure at specific times of the year, either related to events and conferences or in conjunction with feature articles on specific topics.

Every edition carries editorial copy covering the following general topics, with a wide range of subjects within each broader economic sector: energy; mining and exploration; trade; finance; technology and tourism.

In addition to this, special features on topical matters will be published periodically, along with country profiles.

The positive reception accorded the first issues of The Journal of African Business was encouraging and we are optimistic that this publication and future issues will continue to meet the need for timely and relevant information in an exciting time for African business.

In this edition, the in-depth interview with Aggreko Head of Sales, Southern East Africa, Max Schiff, makes clear how important captive power is for the future viability of a wide variety of projects in Africa. As Schiff points out, the extractives industry has long been a leader in the application of captive power, given the remote location of many mining operations, but the flexibility and ESG advantages that captive power using renewables offers is making it an ever-more attractive option for many different sectors.

The two profiled countries in this issue are Angola and Mauritius.

FTI Consulting has done a deep-dive into the challenges facing the African mining sector in the era of enhanced environmental, social and governance reporting (ESG), the report on which is published here.

Another article notes that Afreximbank and the African Petroleum Producers Organization (APPO) have signed a memorandum of understanding (MoU) for the creation of a multi-billion-dollar energy bank while renewable energy is the topic of an International Finance Corporation (IFC) study on Africa’s immense onshore wind potential is immense.

Two partners at Spoor & Fisher interrogate the Intellectual Property considerations of the African Continental Free Trade Area, while Philip Myburgh, Head of Trade and Africa-China, Business and Commercial Clients for Standard Bank, comments on multiple factors which have caused turmoil in trade and logistics.

Finally, two articles examine different aspects of tourism in Africa today. A brand initiative to find the “Best Places in Africa” has been announced and Zimbabwe has a smart new hotel on the banks of the Zambezi River.

Global Africa Network is a proudly African company which has been producing region-specific business and investment guides since 2004, including South African Business and  Nigerian Business, in addition to its online investment promotion platform www.globalafricanetwork.com

JOHN YOUNG

Editor, Journal of African Business

Email: john.young@gan.co.za

Editor: John Young

Publishing director: Chris Whales

Managing director: Clive During

Online editor: Christoff Scholtz

Design: Simon Lewis. Production: Yonella Ncaba

Ad sales: Venesia Fowler, Tennyson Naidoo, Sam Oliver, Tahlia Wyngaard, Gavin van der Merwe, Graeme February, Shiko Diala, Gabriel Venter and Vanessa Wallace

Administration & accounts: Charlene

Steynberg, Kathy Wootton

Distribution & circulation manager: Edward MacDonald

The Journal of African Business is published by Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07

Directors: Clive During, Chris Whales

Physical address: 28 Main Road, Rondebosch 7700 Postal: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Email: info@gan.co.za Website: www.globalafricanetwork.com

No portion of this book may be reproduced without written consent of the copyright owner. The opinions expressed are not necessarily those of The Journal of African Business magazine, nor the publisher, none of whom accept liability of any nature arising out of, or in connection with, the contents of this publication. The publishers would like to express thanks to those who support this publication by their submission of articles and with their advertising. All rights reserved.

FOREWORD

From the editor’s desk.

NEWS FROM THE CONTINENT

Recent investments, expansions and milestones.

THE CASE FOR CAPTIVE POWER IN AFRICA

Aggreko’s Max Schiff outlines how various captive power options can mitigate disruptions and how the company is investing heavily in battery-storage solutions.

AFRICAN MINING IN THE ESG ERA

FTI Consulting has done a deep-dive into the challenges facing the African mining sector in the era of enhanced environmental, social and governance reporting (ESG).

A NEW ENERGY BANK AIMS TO INCREASE PRIVATE INVESTMENT IN AFRICAN OIL AND GAS PROJECTS

Afreximbank and the African Petroleum Producers Organization (APPO) have signed a memorandum of understanding (MoU) for the creation of a multi-billion-dollar energy bank.

THE WINDS OF ENERGY CHANGE ARE BLOWING IN AFRICA

An International Finance Corporation (IFC) study has found that Africa’s onshore wind potential is immense. Green Energy Africa Summit records how that potential is being realised.

HOW SOUTH AFRICA CAN POWER GREEN INVESTMENTS AND END LOADSHEDDING

With South Africa’s energy crisis showing no sign of slowing down, Wesgro CEO Wrenelle Stander comments on the urgent need to accelerate green investments.

WHAT ARE THE INTELLECTUAL PROPERTY CONSIDERATIONS OF THE AFCFTA?

Two experts examine the intellectual property implications of the AfCFTA agreement.

AFRICAN BUSINESSES SHOULD DIVERSIFY SUPPLY CHAINS TO MITIGATE THE GLOBAL LOGISTICS CRUNCH Philip Myburgh comments on multiple factors which have caused turmoil in trade and logistics.

“BEST PLACES IN AFRICA” WILL SHINE A SPOTLIGHT ON AFRICAN BRANDS

A new initiative to promote African brands in tourism, investment and citizen mobilisation.

VICTORIA FALLS HAS A NEW LUXURY HOTEL

The Palm River Hotel has opened on the banks of the Zambezi River.

AFRICAN EVENTS

Upcoming business and trade events in South Africa.

COUNTRY PROFILE: ANGOLA

A major oil producer is trying to diversify its economy

COUNTRY PROFILE: MAURITIUS

The financial services sector is vibrant and growing

NEWS FROM ALL AROUND AFRICA

Recent investments, expansions and milestones.

SHELL ACQUIRES WEST AFRICAN HYBRID-SOLAR-POWER PROVIDER

Daystar Power, a West African provider of hybrid-solar-power solutions to commercial and industrial businesses, will become a wholly-owned subsidiary of Shell following its acquisition by Shell and the approval of regulatory authorities. The acquisition will allow Daystar to grow its operations in the region, while expanding across the African continent. The existing brand will operate within Shell’s Renewables & Energy Solutions business. Sub-Saharan Africa has abundant potential as a solar market, which is expected to grow due to the chronic energy gap. Daystar Power, which numbers among its projects the fitting of a solar system to the Brazilian Embassy in Lagos (pictured), aims to increase its installed solar capacity to 400MW by 2025 to become one of Africa’s leading providers of solar power

solutions for commercial and industrial businesses. Daystar Power’s co-founders and management team will continue to grow its operations in key West African markets, while expanding the company’s presence to other countries across the continent.

Daystar Power’s clients pay a flat monthly fee or a variable tariff (per kilowatt hour) for premium power services, which include a power audit and assessment of energy needs, a bespoke proposal, installation and full operation and maintenance. Clients do not incur any capital expenditure and do not pay up-front costs. By outsourcing the management of their power systems, Daystar Power clients can focus more on running their core businesses.

HEAD START FOR AFRICAN AIRLINES AFTER PANDEMIC

With no travel allowed during the worst months of the Covid-19 pandemic, some airlines switched to ferrying vital cargo. But most fleets were grounded. Rolls-Royce took the opportunity to complete an extensive maintenance programme on their AE3007 engines in the region, upgrading to the latest standards without charge. This allowed operators

to comply with an Airworthiness Directive (necessary for all grounded aircraft) before operations restarted, giving them an all-important head start.

Rolls-Royce has also signed an important extension of its TotalCare maintenanceservice agreement with South African airline, Airlink. The airline’s 28-aircraft Embraer ERJ fleet is powered by Rolls-Royce engines and the relationship has been going since 2001. Airlink’s on-time performance is consistently above 97%. TotalCare is predicated on maintenance schedules running at a fixed cost per engine flying hour. The service is underpinned by predictive maintenance which relies on extensive gathering and analysis of performance data, which helps engineers to diagnose potential future faults and act on them to avoid downtime.

Rolls-Royce has stated that it intends to prove that all its aero engines will be able to run on 100% Sustainable Aviation Fuel by the end of 2023. Any sustainable fuel that meets the D1655 jet fuel standard and requirements is now approved for use in AE3007 engines. Currently, seven different blend varieties can be used, some being certified to blend up to 50% with conventional jet fuel, dramatically reducing carbon footprints.

Credit: Airlink

LOW-EARTH ORBIT SATELLITES HOLD POTENTIAL FOR RURAL CONNECTIVITY

World Mobile is expanding its network across the African continent following a series of successful pilot tests using low-earth orbit (LEO) satellites in the US and UK. Positive results have been found in ongoing tests of Starlink, one of the many LEO satellites.

The company, which was founded in 2018, aims to provide affordable connectivity to rural and remote areas worldwide.

The African continent currently sees less than a quarter the population having access to reliable Internet. Using innovative satellite and relay technology with stratospheric balloons, the first efforts of World Mobile are looking to provide connectivity in hard-to-reach areas within Tanzania, Kenya and Nigeria.

World Mobile’s pilot tested the use of Starlink’s satellite network as a backhaul option for providing internet to World Mobile’s AirNodes (the network’s Internet access points). The connection delivered impressive broadband speeds, latency and stable connectivity with download speeds of up to 400Mbps.

World Mobile’s dynamic network adapts its connectivity infrastructure to the needs of each region, allowing it to deliver efficient and affordable connectivity where other mobile operators cannot reach.

The pilot tests conducted by World Mobile and its partners demonstrated that remote connectivity with the LEO satellite, which serves as a constellation network connecting World Mobile’s AirNodes, can provide robust Wi-Fi services. In Zanzibar, World Mobile is targeting

areas where there is minimal or no connectivity. It is underway in deploying its hybridmesh network to deliver affordable mobile connectivity in the region through a network of AirNodes and aerostats with a coverage radius of up to 70km. In addition to rolling out in Tanzania and Kenya, World Mobile is in advanced talks about expanding its network to other African countries, such as Mozambique and Nigeria. The company’s unique offering provides low-cost connectivity in areas that traditional operators cannot reach, while also enabling entrepreneurs to own or operate a portion of the network and benefit from its adoption.

Orange Botswana became the first Orange affiliate in Africa to launch 5G commercially and the country’s first Orange Digital Center made it the company’s 12th such training centre in Africa and the Middle East

The Digital Centers are designed to train young people in digital technology and enhance their employability. Previous countries to host a Digital Center are Tunisia, Senegal, Ethiopia, Mali, Ivory Coast, Cameroon, Egypt, Jordan, Madagascar, Morocco and Liberia.

Spread over 390 square metres, it brings together several strategic programmes of the Orange group, namely, a coding school, a solidarity FabLab (one of the Orange Foundation’s digital manufacturing workshops) and an Orange Fab start-up accelerator, supported by Orange Ventures Middle East and Africa, the investment fund of Orange Group.

All the programmes are provided free-of charge and are

open to everyone. They range from digital training for young people, 90% of which are practical, guidance for project bearers, start-up acceleration and investment in these.

Working as a network, the Orange Digital Centers allow experiences and expertise to be shared between countries and offer a simple and inclusive approach to improve young people’s employability, encourage innovative entrepreneurship and promote the local digital ecosystem.

enabled in the country by the 5G technology. The 5G launch is aligned with the government’s ambition to leverage Fourth Industrial Revolution (4IR) innovation towards transforming Botswana into a knowledge-based economy.

5G, with its ultra-high speed and low latency, will support new disruptive services such as e-health, connected vehicles, connected cities, real-time gaming, smart homes and learning through VR and augmented reality. It offers a new world of possibilities to companies, innovators and society at large.

Orange Botswana has partnered with MRI Botswana to create a “Connected Ambulance” project that will allow doctors to guide paramedics through life-saving procedures on their way to hospitals. This telemedicine intervention will change lives and would not have been possible without 5G.

After this first commercial launch of its 5G services in Botswana, Orange Middle East and Africa intends to maintain its efforts in getting the latest and most advanced technologies in all its MEA countries, adding value to local economies and bridging the digital gap.

In addition, Orange Botswana, in partnership with universities, will train students for free and roll out Orange Digital Center Clubs, extensions of the Orange Digital Center within some universities in the regions. This will complement the education system to give as many people as possible access to new technologies and support them in using these technologies to their full extent.

The 5G network became available in greater Gaborone and Francistown, covering 30% of the population in November 2022. Other cities will follow in early 2023.

New healthcare, education and security services will be

Orange is present in a total of 18 countries in Africa and the Middle East and has 142-million customers as of 30 September 2022.

ORANGE BOTSWANA BLOSSOMED IN 2022 WITH TWO BIG LAUNCHES

THE CASE FOR CAPTIVE POWER IN AFRICA

Please define “captive power”.

There are numerous definitions and types of captive power. Most commonly, it is defined as “behind the meter” energy or power that is generated at the user site, rather than imported from a wider grid transmission system via an energy meter.

The scale, sources and applications of captive power differ significantly. While it could be at the household level, here we are talking about industrial and commercial applications. This may include processing plants with the onsite generation, such as sugar factories using thermal power from burning bagasse to generate steam to drive a turbine; industrial parks or farms with

rooftop or ground-mounted solar PV arrays; manufacturing plants with onsite gas power generation such as turbines or reciprocating engines running on piped gas, biogas or even associated petroleum gas (flare gas); or onsite wind turbines powering mine sites or other commercial/industrial facilities. The list goes on.

Is this something that is growing in the world?

As with the overall power demand, there is a growing demand for captive power globally. Depending on the circumstances, demand may be driven by environmental and social governance

Industry and mining require a stable supply of power to operate optimally, a requirement which cannot always be guaranteed in Africa. Aggreko’s Max Schiff outlines how various captive power options can mitigate disruptions and how the company is investing heavily in battery-storage solutions to assist in creating hybrid solutions which combine grid and renewable sources.

Remote mining destinations such as this one in the Democratic Republic of the Congo must use captive power to support their operations. Credit: Aggreko

(ESG) targets, high-cost peak utility tariffs, intermittency or fluctuations of grid supplies, or even a total absence of a grid in many areas of the world.

Where captive power can be cleaner, cheaper and/or more reliable than grid supply, then there is motivation to assess the return on investment (ROI) of supplementing or substituting the grid with a captive-power source.

The extractives industry, such as the mining of minerals or oil and gas, often takes place in unconnected regions. It also requires stable power to maintain production of high-value materials to cover the high operating and capital costs of such industries. In such cases, captive power is the only option. However, today’s question is primarily how to secure reliable power and avoid intermittency while achieving maximum renewable penetration and remaining cost-effective? This is a question driving significant investment in control system and battery storage development required to improve the trade-off between carbon reduction via renewable penetration and the reliability of thermal power. This is an endeavour that Aggreko

has invested in significantly in the past six years, particularly since it acquired the battery storage provider Younicos in 2017.

In much of the developing world grid stability and electrification lag behind the developed world. Here, the value drivers for captive power are more pronounced. Higher cost and less reliable power increase the ROI of captive power, even for industries that are less power intensive and produce lower-value goods and materials. In the developed world, net metering policies provide financial motivation for commercial and domestic entities to install captive power solutions as excess power is sold back to the grid via smart meters, allowing revenue from curtailed power, hence improving the ROI of the initial investment.

In other geographies, there are regulatory caps and barriers placed on captive power installations, especially for gridconnected industrial entities, as state-owned utilities attempt to prevent loss of market to captive solutions. South Africa experienced the opposite of this in 2021 when President Cyril Ramaphosa announced that the regulatory cap on selfgeneration in South Africa would increase from 10MW to 100MW, paving the way for increased competitors for the national grid from captive power installations. This was done in response to an ageing centralised generation infrastructure dependent on coal power assets that are not to be overhauled, for obvious environmental reasons.

And in other parts of Africa?

Africa presents an interesting scenario. As mentioned above, cost, instability and access metrics trail much of the world, thus encouraging investment in captive power due to a higher comparative ROI. This is not only driven by large off-grid extractive off-takers in the mining and oil and gas industry, but a broader range of actors.

The extractives industry has been a leader in the captive power space for decades due to its often-remote locations. Capital investment in transmission and distribution infrastructure to connect to a high-cost and unreliable grid supply often does not make sense. This is especially true when critical applications are considered, such as underground mining where power outages not only present significant health and safety risks, but

Max Schiff, Head of Sales, Southern East Africa, Aggreko

How to secure reliable power and avoid intermittency while achieving maximum renewable penetration and remaining cost-effective?

Battery storage systems are a vital component of any captive power solution, enabling hybridisation with grid or renewable sources. Getting batteries up to the scale where they can support large-scale industrial operations is the next technological challenge. Credit: Aggreko

the risk of production losses, especially if mine shafts are prone to flooding. In many locations, such as Tanzania and Zambia, where the national grids have extended successfully in recent years, mines still require onsite generation as a backup for these critical applications. In the case of oil and gas, where production values are high, and producers are held accountable for production targets by their shareholders and, often, regulators, captive power is necessary to ensure reliability. Even highercost diesel applications are preferable to losses resulting from grid instability causing failure or damage to equipment used for artificial lift. We see extensive examples of this in Egypt’s Western Desert, where government mandates are now driving producers to move away from diesel by using flared gas to power site operations, resulting in significant carbon off-sets without risking production.

Equally, across the African continent, we see an increase in the application of captive power technologies on agricultural and commercial sites, where solar is proliferating as evidenced by the growth of solar power providers offering industrial-scale solar PPAs. In many of them, PV is integrated with other local sources of power such as hydro or wind. In such cases, off-takers can benefit from gains in all drivers, environmental, reliability and cost, while reducing capital investments through executing PPAs with companies offering financed solutions. Kenya’s tea industry is a great example of this, despite the country’s competitive grid tariffs and high penetration of renewables in its national supply.

As South African utility Eskom continues to implement the reliability maintenance recovery programme to achieve operational sustainability, many electricity generating units are taken offline for planned maintenance which leaves the national power system constrained. The Embedded Generation Investment Programme (EGIP) is critical for South Africa to achieve its climate targets and reduce excess demand on Eskom.

What are the reasons for the increased interest in captive power?

There are several advantages. In the most basic example, captive solutions deliver power where the grid does not exist.

In grid-connected scenarios, captive solutions allow for the reduction of the cost of power, both economically and environmentally. Finally, reliability gains can have a significant knock-on effect on production, or assist in avoiding production losses, by overcoming intermittency and instability. Where grid voltage and frequency stability are a challenge, the same is true, and off-takers can also avoid damage to costly machinery. This last point is especially true of sensitive processes such as smelting, clinker production and high-value mineral extraction and processing, where equipment values and operational costs are high, and downtime is therefore very costly.

The ESG agenda is, of course, driving the captive power industry as corporates, financiers, regulators, households and individuals look for avenues to not only reduce their energy bills but also their environmental footprint. Household-level solar and battery walls that allow their stored energy to be returned to the grid if unused are a great example of this. We see growth in these applications in the US, albeit not at a significant scale yet.

Finally, in areas facing challenges of energy access, capital investment in large-scale transmission systems to connect remote areas presents a hurdle that more local captive power solutions can overcome. Mini-grids and captive solutions avoid large-scale transmission investment and the associated losses while ensuring that locally available resources, such as solar, wind, tidal, biogas , etc, can be used to meet local demand.

Is the regulatory (or legislative) environment ready for captive power in Africa?

Regulation in Africa varies from one jurisdiction to another. In Uganda, distributed energy is regulated as part of a broader isolated-grid system approach administered by the government. Nigeria’s focused captive power regulation offers clarity to consumers, operators and developers. In Kenya captive power systems are regulated through a number of separate regulations, arguably making a more complex environment for these actors.

South Africa has begun an intense programme of creating Special Economic Zones: is this something you are seeing in other African countries, and why is captive power so particularly suitable for such areas?

According to the United Nations Conference on Trade and Development (UNCTAD) 2021 report, there are over 200 Special E conomic Z ones (SEZ s) in Africa. Around 60 new SEZs are under construction, and others are being developed or planned. The report highlights Kenya, Nigeria, Ethiopia and Egypt as the locations with the highest number of SEZs. Morocco, Mauritius, South Africa, Zanzibar and Rwanda are all looking to further leverage SEZs to attain economic development.

Captive power offers power autonomy and reliability to SEZs that may not be available from the existing utility infrastructure. For SEZs are also designed to create job opportunities in remote locations, captive power remains the only viable source of electricity.

The extractives industry has been a leader in the captive power space for decades

Would mining be another sector that lends itself to captive power?

The key factor affecting the operation of mines in South Africa is the availability of a reliable, uninterrupted supply of power. South Africa’s well-publicised energy challenges mean that mines are not guaranteed to receive a reliable supply from the national power utility. In the recent months, loadshedding has reached a point where mining processes can no longer be organised to mitigate production losses due to power intermittency. Indeed, the current narrative is one that is characterised by such losses and pose a major challenge for the wider industry. Captive power options, particularly those with cos t- effective hybrid elements, present for mines a great opportunity, especially mines with longer li fe spans.

What are the cost implications of captive power?

The real question is what value can captive power solutions offer to businesses? This is to ask not only what the implications are for operating costs, but what benefits will be derived from a more reliable or a cleaner energy source? Where production and environmental gains outweigh operating costs, we can determine the value that underpins a return on investment. The parameters of this ROI vary significantly depending on the cost and quality of the existing supply, the fuel/energy available to be used to generate power onsite (be these from fossil or renewable sources), the cost of capital available to the investor and the duration of the power requirement, not to mention the value of the service, material or goods being produced.

What sort of solutions does Aggreko have within this market?

Aggreko’s capabilities speak directly to the captive power space, particularly for larger industries.

The energy transition is a global mandate for governments, companies and individuals alike. While the end goal is net zero, the process must be economically viable for stakeholders, including off - takers, investors and developers, for the transmission to progress and be successful.

Within this context, the key question of captive power is , “ H ow to maximise reliability while minimising cost and environmental impacts?” For now, the trade-off between these drivers remains a challenge. It will continue to do so until battery technologies can cost-effectively and seamlessly match large and

complex loads to renewable power sources such that the agility and reliability of fossil-based thermal solutions are no longer required to perform this function.

At present, it’s not possible to run a factory, mine, oil and gas site on intermittent class one renewable, such as wind and solar, without significantly curtailing production, in most cases to the point of the facility being economically unviable. Battery storage technologies are often not yet cost-effective enough to overcome this intermittency at such a scale. Historically, thermal power solutions, including diesel, gas and HFO, have been used due to two simple reasons: they are technically capable of powering complex industrial loads 24 hours a day, seven days a week, and fuels are widely available and easily transportable, especially in the case of diesel and increasingly gas. This is to say that the supply chains for the required technology and fuel are well developed and reliable.

Aggreko’s role in the transition is aligned with that of the off-takers in this regard. We recognise that fossil-based thermal power is necessary to ensure the economic and technical viability of captive solutions for many industries. This said, thermal generation must be as efficient as possible through investment in low-emission fuels and engines and application of load-sharing techniques that ensure efficient loading.

Beyond this, Aggreko continues to invest in battery storage solutions that sit alongside our gas, diesel and HFO offerings to enable hybridisation with grid or renewable sources. Our in-house control systems enable us to prioritise energy sources based on financial or environmental drivers specified by our customers and to match these to the relevant loads, ensuring continuity at the site. If the sun is shining or the wind is blowing, on-site renewable energy sources integrated by Aggreko can be employed and matched to the site loads. If the energy source drops, then stored energy can be deployed until a grid supply or onsite thermal generation is dispatched as a last resort. We see this as the essence of the transition as we continue our efforts and strive for greater and greater renewable energy penetration wherever possible. Aggreko will continue to invest in thermal, storage and controls solutions to enable this while working with renewable technology providers to ensure we offer customers the greatest inflexion point between reliability and environmental protection

Africa has more than 200 Special Economic Zones (SEZs), such as the Saldanha Bay Industrial Development Zone in South Africa’s Western Cape Province. Captive power can provide such important industrial and commercial areas with power autonomy and reliability. Credit: SBIDZ

losses

Mini-grids not only avoid large-scale transmission investment but also avoid the associated

AFRICAN MINING IN THE ESG ERA

FTI Consulting has done a deep-dive into the challenges facing the African mining sector in the era of enhanced environmental, social and governance reporting (ESG). What follows is a summary of the main points of the 14-page study, “Evolution in African Mining. Investing in the Energy transition, ESG, and the Economies”.

The demand

energy places immense pressure on the mining sector, which is perceived to make a significant contribution to CO2 emissions. Now, mining companies with extensive social and environmental footprints are coming under greater scrutiny by investors, civil society and governments. In Africa, the ESG challenge is the legacy of environmental damage

and irresponsible mining practices, therefore there is a need to create guidelines for the continent.

In “Evolution in African Mining: Investing in the Energy Transition, ESG and the Economies”, FTI Consulting addresses the questions and possible responses on growth, costs, risks, capabilities and licences to operate that confront the mining sector in Africa and globally today.

Based on research gathered through the FTI Consulting Resilience Barometer 2022™, the mining sector seems to be under the most pressure from the current focus on ESG concerns. In fact, nearly half of the companies polled reported that they are under increased pressure, and one-third said that they are falling short on ESG reporting. As a result, while recognising international decarbonisation goals, mining and metals companies understand that their own ESG goals are now under ever-closer scrutiny.

“The ESG shift does not mean discarding possible down-side risks. Instead, it is seen as having a business strategy that seeks new opportunities from the transition to sustainability that is underway, understanding that there will be disruptions and unknown risks to manage within this,” says Petrus Marais, Head of FTI Consulting South Africa practice.

These factors will impact the sector across four major areas of concern.

STAKEHOLDER ENGAGEMENT

While one in five companies in the extractives sector stated they were under pressure to strengthen external stakeholder relationships, one in two chief risk officers felt “extreme pressure” to improve external stakeholder relationships. Greater

Tside of global

Credit: Pixabay

Sara Powell, Managing Director, Sustainability and ESG at FTI Consulting United Kingdom

collaboration with external stakeholders, including customers and the supply chain, will be essential in embedding the demands of a circular economy in the mining lifecycle to reduce its carbon footprint and ensure improved materials footprints.

ESG

The mining sector finds itself at a complex juncture requiring transition management strategies that acknowledge the increased demand for raw materials driven by the mineralintensive clean energy technology and a more aggressive stance on curbing their environmental impact. The global strategy along the decarbonisation and ESG compliance route is complex and multifaceted and it will alter the mining sector, while also providing opportunities and challenges.

CIRCULAR ECONOMY

The mining sector is aware of the complex environmental risks –primarily from mining waste – that accompany its operations, and the option of displacing those from one environment to another is no longer tenable. Implementing circular economy thinking, such as focusing “on getting more from less” and adhering to waste-reducing principles – reduce, reuse, recycle – will improve

the sector’s sustainability and long-term profits. Such practices would go a long way towards satisfying stakeholder concerns around ESG compliance.

SOCIETAL IMPACT OF MINING

There is far more at stake in the mining sector than increasing exploration costs. The cost of ignoring the S in ESG can be massive. The complex ESG environment means businesses are under the scrutiny of social activists, shareholders, regulators, consumers and the media. Crucial to this success will be the management and monitoring of carbon and wider materials footprint by accurately quantifying, measuring and communicating the data collection. Research shows that 90% of the mining sector sees the need to align business strategy to social purposes. In addition, 90% also saw the transition to a more sustainable business model opening the doors to new opportunities. As Sara Powell, Managing Director, Sustainability and ESG at FTI Consulting United Kingdom, says, “Organisations – across every industry – that ignore the acceleration towards net-zero will not only be highly vulnerable to climate risks but will also be ill-prepared to capture far greater stakeholder value by acting on transition-led opportunities.” The full report can be seen at: www.fticonsulting.com

ESG IN MINING

About FTI Consulting

FTI Consulting, Inc. is a global business advisory firm dedicated to helping organisations manage change, mitigate risk and resolve disputes: financial, legal, operational, political and regulatory, reputational and transactional. With more than 6 900 employees located in 30 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The company generated $2.78-billion in revenues during fiscal year 2021. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalised and independently managed. For more information, visit www.fticonsulting.com and connect on Twitter (@FTIConsulting), Facebook and LinkedIn.

Reporting in the mining sector is becoming ever-more complex.

Credit: Thungela Resources

FUTURE FIT – 2023 YOUR YEAR TO STAND OUT!

Reshape your future with Wits Business School to remain relevant in the rapidly-changing business environment.

By Leoni Grobler, Director of Executive

Education at Wits Business School.

Digitisation and digitalisation have transformed our world of work and put many of us in challenging positions. Many are questioning: am I still relevant for this position? Is this role even going to be around much longer? At Wits Business School (WBS), we believe that there is no need to fear.

Not only do we aim to remain relevant but, as a leading research institution, we develop highly credible and relevant courses and programmes that enhance the relevance of our delegates in their job roles and assist them in leadership roles.

People are the new competitive edge in business. Products or services can be duplicated and emulated by competitors but nobody can copy and paste the rich, intangible assets of talented employees who perform in an exemplary manner. Future leaders must be agile in order to respond quickly to new problems and to imagine and pursue new solutions.

Executive Education is a division of WBS that designs and delivers educational interventions to business professionals as part of their continued professional development and life-long learning. Frequently, the courses are tailored to particular cohorts or organisations, ensuring that the courses meet the needs of the specific industry or organisation.

The Executive Education short course offerings include globally-recognised transformative learning methodologies, networking and skills-sharing opportunities, Action Learning Projects, expert coaching and workplace application. Our team of pracademics bring to the classroom first-hand and up-todate industry experience in order to maximise productivity, drive innovation and sustainability, and to develop a competitive advantage.

Executive Education’s aim is to develop leaders who can fashion the future of the African continent and raise the values-bar on how business is done on the continent. Learning is therefore relevant to the challenges and opportunities what we face, providing our delegates with a deep understanding of the complexities of doing business in Africa within a global context.

The vision of WBS is to be a leading African Business School firmly embedded amongst the best business schools internationally. Through quality and impactful programmes. WBS aims to become a leading African Business School by offering life-long access to Africa’s premier, globally-connected ecosystem in digital technology and innovation.

WBS stands at an exciting juncture: the world has undergone a seismic shift brought about by the Covid-19 pandemic; technology has connected us as never before. Moreover, climate change has forced us to rethink how we do business.

Operating from the heart of Africa’s financial and economic hub, Johannesburg, and as a leader in research in areas critical to sustainable growth, WBS has a powerful role to play in equipping young leaders with the skills they need to build the future they want.

WBS is preparing the business leaders of tomorrow to manage the continent’s economic transformation effectively. These leaders will facilitate the goal of our constitution for an inclusive developmental future for all of our people. This is the next leg on our journey as we consolidate our position as a leading African business school.

FLEXIBLE LEARNING IS CRITICAL IN PROFESSIONAL DEVELOPMENT

Due to the dynamic nature of a rapidly-changing business environment, WBS is positioned to adapt to new ways of work. The need to develop employees to adapt to this new way of work is becoming critical. It is time for individuals and companies to focus on honing, developing and upskilling their skillsets and knowledge bases.

The latest trend is to evolve dynamically through flexibility: flexible working hours, flexible places of work and flexible methods of working. Now there is flexible learning, a crucial element for professionals at all levels. This has prompted tertiary institutions to expand their offerings through affordable and accredited partners.

Flexible learning is more than just transferring a course to a digital platform. Flexible learning is flexible practices of formal education, increasing flexibility across the scope of requirements, payment options, time and location of study, assessments and certifications. Flexible learning can be delivered through blended (hybrid) or online modes.

Whether one opts for an online short course or attends a three-day workshop arranged by one’s employer, the participation skills learned in such professional development options tend to be versatile and transferable. Thus, flexible learning is the ideal solution for employers looking to upskill staff as well as for individuals seeking a career change or improvement in their professional skills for their current field of work.

For professionals and employees, flexible learning is definitely the way to go. With short course and microcredentials on offer, you can advance your career through further study, without having to give up the work that pays for these studies. Career advancement through additional qualifications is a feasible and affordable option.

F lexible learning also offers various perks and benefits to both employers and individuals, some of which are listed below:

• allows learners to learn where and when it suits them

• accommodates learners’ learning styles and preferences more effectively

• offers a more comfortable learning environment than a traditional classroom

• offers increased convenience and flexibility for learners

• is economically viable, with lower total costs

• provides training options that can accommodate business demands and needs for employers

• increases employee (and student) retention and attendance

• develops learners’ independence and confidence while improving achievement

• provides employees an opportunity to gain new knowledge and develop new skills.

Whether you’re an individual or an employee looking to explore flexible learning options, WBS is guaranteed to have a suitable course to meet your needs. WBS’s Executive Education series of courses is targeted not only at senior executives and executives, but managers of all levels who are looking to harness their skills and translate their knowledge into practical and e ffective business solutions. These course off ers greater insight into business leadership for the benefit of your individual growth as well as the growth of the organisation. Our innovative and impactful Executive Education courses have been developed by industry experts and academics to help you refresh and hone your leadership skills.

The Action Learning Project, the Personal Development Plan and the Business Cases allow you to test and apply what you’ve learnt in your work environment. As part of the Executive Education series, you will learn how to improve your effectiveness as a leader, how to apply strategic analysis to practical situations and how to effectively negotiate for what you want. Our programmes provide you with the best in knowledge, tools, research and practical exposure.

Wits Business School aims to play a clearly-defined role in the future of our country and continent!

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People are the new competitive edge in business

A NEW ENERGY BANK AIMS TO INCREASE PRIVATE INVESTMENT IN AFRICAN OIL AND GAS PROJECTS

Afreximbank and the African Petroleum Producers Organization (APPO) have signed a memorandum of understanding (MoU) for the creation of a multi-billion-dollar energy bank. Tackling energy poverty in Africa will be at the heart of the bank’s mission.

Global investors are shying away from hydrocarbons, leaving the continent without the investment it needs if it is to capitalise on its resources

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Pan-African multilateral trade finance institution, the African Export-Import Bank (Afreximbank), has signed a Memorandum of Understanding (MoU) with the African Petroleum Producers Organization (APPO) for the creation of a multi-billion-dollar energy bank. Aimed at scaling up private sector investment in African oil and gas projects, the bank will provide critical financing for new and existing oil and gas projects, as well as energy developments across the entire value chain. Following international oil company divestment and the shift in global investment trends, the bank comes at a particularly critical time for Africa’s energy sector.

The MoU was signed by Rene Awambeng, Director and Global Head, Client Relations, Afreximbank, and Dr Omar Farouk, Secretary General of APPO, in the presence of HE João Lourenço, President of the Republic of Angola, APPO ministers and African Energy Chamber (AEC) Executive Chairman NJ Ayuk.

While the developed world calls for the end of fossil fuels due to climate change, Africa continues to face the crisis of energy

poverty. Over 600-million people lack access to electricity and 900-million lack access to clean cooking solutions. This situation has led stakeholders to call for the rapid expansion of the oil and gas sector, recognising the role these resources play in making energy poverty history. Despite these calls, global investors are shying away from hydrocarbons, leaving the continent without the investment it needs if it is to capitalise on its resources.

According to the AEC’s Q1 2022 report, “The State of African Energy”, from the peak in 2014 at $60-billion, capital expenditure in Africa declined to $22.5-billion in 2020. Despite projected increases to $30-billion, significant levels of investment are still required and for this to happen, the role of African financial institutions is vital.

Catalyst for Africa-directed investment

Organisations such as Afreximbank have already made notable progress to drive oil and gas project developments. At the end of 2020, Afreximbank’s total assets and guarantees stood at

$21.5-billion, with shareholder funds amounting to $3.4-billion. Other institutions, including the African Development Bank with an active portfolio of projects upwards of $12-billion, also represent critical providers across the African energy landscape. However, more needs to be done, and if large-scale discoveries such as those made in Namibia and Ivory Coast are to be sufficiently developed, more capital needs to be made available.

Stepping into this picture, the AfreximbankAPPO MoU aims to alleviate these challenges, ensuring the provision of capital for Africa’s upcoming oil and gas projects. Based in Africa, the bank will operate as an independent entity, regulated and led by experienced professionals who know and understand Africa’s energy needs. The proposed bank will not be a substitute for private investment, however, but rather will serve as a catalyst for Africa-directed investment.

NJ Ayuk, Executive Chairman of the AEC, says: “The African Energy Chamber has been pushing for the creation of an African Energy Bank, one that is African-based and Africa-focused, and I am proud to announce that the Afreximbank and APPO have taken the first steps towards its creation. The bank will be critical for Africa’s energy sector, serving as a catalyst – not a substitute – for private investment in African energy. This is a practical strategy for prosperity and a pragmatic vision that must be embraced by all who want to make energy poverty history and fight climate change.

“Why should our pension funds go to European banks who say they will not finance Africans and call us risky? We need to use that money to finance oil and gas,” states Ayuk.

The proposed African Energy Bank will operate in the same way as the APPO-created Africa Energy Investment Corporation – a developmental financial institution created to channel resources towards the development of Africa’s energy sector. In addition to ensuring capital is made available for African oil and gas, the bank will serve as a vessel for mobilising African-sourced finance. Rather than utilising international banks for pension funds, the bank will serve as an investment corporation that will channel these funds into African projects. This will ensure high returns of investment as well as the development of Africa’s energy sector.

The benefits will be two-fold: the funds will help drive oil and gas development while the oil and gas projects will drive socio-economic growth through the increase in access to energy. Accordingly, the role this bank will play is pivotal

CREDIT: Emmaus Studio on Unsplash

The proposed African Energy Bank will operate in the same way as the APPO-created Africa Energy Investment Corporation – a developmental financial institution created to channel resources towards the development of Africa’s energy sector.

THE WINDS OF ENERGY CHANGE ARE BLOWING IN AFRICA

Diversification of the continent’s wind energy sector is expected in response to the rollout of new projects in new regions. An International Finance Corporation (IFC) study has found that Africa’s onshore wind potential is immense. The organisers of the annual Green Energy Africa Summit compiled this article to record how that potential is being realised.

Lake Turkana Wind Farm is not only one of Africa’s biggest wind projects, it also, at $650-million, represents the single-largestprivate investment in Kenya. Kenya Power buys power from the facility, which generates 310MW of energy. Credit: LTWP

Outside of a limited number of countries, wind turbines have remained a rare sight in Africa. But this is not for lack of potential.

In 2020, a study by the International Finance Corporation (IFC) found that continental Africa possesses an onshore wind potential of almost 180 000 TWh/annum, enough to satisfy the entire continent’s electricity needs 250 times over. As the continent continues to seek ways to expand energy access, the adoption of wind as a source of energy is expected to accelerate.

To date, only Morocco, Egypt and South Africa have been truly successful in harnessing their wind potential and attracting private capital to set up wind parks. Through its widely-acclaimed Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), South Africa has already commissioned 34 wind farms with an installed capacity of over 3.3GW, according to the country’s IPP Office.

And this is far from over. In 2021, the South African Ministry of Mineral Resources and Energy announced 25 successful bidders

under its REIPPPP Bid Window 5, including 12 wind farms with a total capacity of 1 600MW.

Bid Window 6, which was due to allocate a maximum capacity of 1 600MW of wind, with projects ranging from 50MW to 240MW, was doubled in capacity by President Cyril Ramaphosa very soon after its initial announcement, in response to the problems the country has been having with rolling blackouts.

Up north, Morocco and Egypt continue to drive wind-energy developments. The latter has an installed wind-generation capacity of almost 1.5GW across 13 wind farms, according to its Ministry of Energy. It now expects to commission another 2GW by 2025 with an additional 14 wind farms.

On the other side, Egypt has seen fewer but bigger projects. Its four wind farms have a current installed capacity of 1.6GW. The most recent one, West Bakr, was commissioned by Lekela Power in November 2021.

As the continent continues to seek ways to expand energy access, the adoption of wind as a source of energy is expected to accelerate.

DEVELOPMENT AND MULTILATERAL FINANCE

Across the rest of the continent, multilateral and development finance institutions (DFIs) have played a key role in supporting the emergence of the wind sector.

West Africa has increasingly harnessed its wind potential with facilities commissioned in Cabo Verde (Cabeólica, 2011), Senegal (Taiba Ndiaye, 2019) and Mauritania (Boulenouar, 2020). The projects received significant backing from the likes of the Africa Finance Corporation (AFC), the US International Development Finance Corporation (DFC) and the Arab Fund for Economic and Social Development (AFESD).

They have successfully laid the ground for more projects to follow. In December 2021, the DFC notably provided funding for a feasibility study to expand Senegal’s 158.7MW Taiba Ndiaye Wind Farm by another 100MW.

East Africa is also joining the game, led by Kenya. After the expansion of the Ngong facility in 2014, the country commissioned the 310MW Lake Turkana Wind Farm in 2017 and the 100MW Kipeto Wind Farm in 2021. The African Development Bank (AfDB) was the mandated lead arranger on Lake Turkana’s debt package and managed to attract several leading European DFIs to finance the project. The Kipeto project was mostly funded by the DFC.

After its success in Cabo Verde, the AFC has moved east where it is the lead developer on Djibouti’s Red Sea Wind Power Project in Ghoubet. The 60MW facility is nearing completion and is the country’s very first independent power producer (IPP).

AN IDEAL CHOICE TO CUT CARBON EMISSIONS

More recently, natural resources and extractive industries have provided an additional driver of wind-energy adoption in Africa. Publicly-listed oil and gas and mining companies seeking to decarbonise their portfolio and cut carbon emissions across their operations are looking at wind projects.

In March 2022, Savannah Energy executed an agreement with the Ministry of Petroleum, Energy and Renewable Energies of

the Republic of Niger to develop the country’s first wind farm. Savannah Energy, operator of some of the most prolific oil blocks in Niger, is planning to construct and operate the 250MW facility in the Tahoua Region. The wind farm will be structured as an IPP and is currently in feasibility study. It is expected to be sanctioned in 2023 for a potential commissioning in 2025.

In Zambia, First Quantum Minerals (FQM) entered into a new partnership with Chariot and Total Eren in 2022 to develop 430MW of solar and wind power for its mining operations. The company operates Africa’s biggest copper mine by production in Zambia and it seeks to reduce its carbon footprint by 30% by 2025.

In South Africa, Anglo American is embarking on an even bigger project with EDF Renewables. Both companies signed a Memorandum of Understanding in March 2022 to work together on the development of a new regional renewable energy

West Bakr Wind Farm, Egypt. Credit: Lekela

Akhfenir Wind Farm is owned by Nareva, a subsidiary of Morocco’s National Investment Company. Credit: Eurogrues Maroc.

Publicly-listed oil and gas and mining companies seeking to decarbonise their portfolio and cut carbon emissions across their operations are looking at wind projects

If green hydrogen is to be viable, many more wind and solar plants will have to be built. Credit: Hyphen Hydrogen Energy

ecosystem (RREE). The scheme is expected to be designed to meet Anglo American’s operational electricity requirements in South Africa through the supply of 100% renewable electricity by 2030. It seeks to develop a network of on-site and off-site solar and wind farms with storage up to 5GW to power Anglo American’s operations.

THE HYDROGEN OPPORTUNITY

Equally important, the emergence of Africa’s hydrogen industry will also be supporting the growth of its wind sector.

In 2021, the Chariot Energy Group signed a MoU with the Mauritanian Ministry of Petroleum, Mines and Energy to move forward on Project Nour, a potential green-hydrogen development of up to 10GW.

Under the MoU, Project Nour has been given exclusivity over 14 400km2 of onshore and offshore area in Mauritania where pre-feasibility and feasibility studies will be conducted to generate solar and wind power used in electrolysis to split water and produce green hydrogen and oxygen.

In Namibia, the government issued in late 2021 a notice of award to Hyphen Hydrogen Energy, the joint-venture of Nicholas Holdings Limited and ENERTRAG South Africa (Pty) Ltd, to develop Southern Africa’s first gigawatt-scale green-hydrogen project.

The $9.4-billion scheme will be located within the Tsau//Khaeb National Park, which is among the top five resource-rich locations in the world for co-located onshore wind and solar, according to Hyphen. The project’s full development targets 300 000 tons of green hydrogen production a year from 5GW of renewable generation capacity and 3GW electrolyser

Green Energy Africa Summit

Green Energy Africa Summit is the global platform for stimulating deals and transactions across the African energy sector. The event brings together governments, national regulator and utility companies, independent power players, investors, financial institutions and service providers. The summit drives deals and investment into energy projects, provides energy access and solutions for the continent and shapes the future of Africa. www.greenenergyafricasummit.com

Camels at the Lake Turkana Wind Farm. Credit: LTWP

HOW SOUTH AFRICA CAN POWER GREEN INVESTMENTS AND END LOADSHEDDING

Understandably, many bemoan loadshedding as it continues to be a massive drag on productivity and output in key sectors of the economy. But there is a silver lining; loadshedding presents the most opportune moment for South Africa to speed up the transition to renewables and decarbonise by creating an environment conducive for green investments.

With its abundant sun and wind, South Africa has the basic resources to attract investments in that space. But we should be doing more to lure green investors.

Ramping up targeted incentives to companies operating in the renewable energy space could be one of the most effective ways to spur green investments into the country, and thus keep the lights on – which is necessary to fire up the economy and to make a meaningful dent in unemployment, poverty and inequality.

While South Africa is considered the best area for investment in Africa by investors from various countries around the world

– topping the list of foreign direct investment with 31 projects in 2020 according to the Attractiveness Report Africa by global professional services firm Ernst & Young (EY) – the country hasn’t done enough to build on this advantage and scale up renewable energy investments.

WHAT SHOULD SOUTH AFRICA DO?

So, what should South Africa be doing to establish itself as a green investment hub? Huge tax benefits, which could effectively address green economy challenges and changes in consumer behaviour, are one of the most important factors influencing green investment decisions today. This can be seen in countries that top EY’s investment attractiveness index, including the US, the UK and Germany. Examples of sustainable activities that receive substantial tax credits in those countries are in energy-efficient renovations especially in residential buildings. There are also

Following the announcement by the City of Cape Town that residents could get cash for power, South African company Versofy Solar received 1 500 enquiries in the month of January. Credit: Versofy Solar

With SA’s energy crisis showing no sign of slowing down, the need to accelerate green investments is now more urgent than ever.

By Wesgro CEO, Wrenelle Stander. Wesgro is the official tourism, trade and investment promotion agency for Cape Town and the Western Cape.

credits for companies that invest in solar panels, wind and solar energy equipment. Companies that send waste from landfills for recycling or reuse also qualify for tax benefits.

A recent study conducted by global research firm Kantar on behalf of Wesgro, the official tourism, trade and investment promotion agency for Cape Town and the Western Cape, shows that there is a growing appetite to invest in the green economy globally and many governments are putting in place clear and

targeted measures to make it easier and more incentivised for players in that market.

The US, for example, recently promulgated the Inflation Reduction Act of 2022 which includes almost $400-billion in clean energy and climate-related spending. The law partly puts an emphasis on subsidies and tax credits to stimulate investment in clean-energy technologies rather than on a carbon price or penalties. In broad terms, it aims to ramp up investments in domestic manufacturing capacity, encourage domestic procurement and the diversification of supply chains, and incentivise research and development and commercialisation of clean technologies like carbon capture, storage and clean hydrogen.

A major portion of the funding under the new law is directed towards clean energy through a mix of tax incentives, grants and loan guarantees, with the ultimate goal of drastically lowering US carbon emissions. The largest amount of funding will support clean energy and transmission, followed by clean transportation, including a switch to electric vehicles (EVs).

Similarly, the UK provides generous tax breaks for companies that operate in a sustainable manner. A Climate Change Levy (CCL) is paid by businesses in key sectors, including industrial, commercial and agricultural or public services for electricity, gas and solid fuels.

But if the firm uses small amounts of energy (for example, when energy is not used as fuel), or uses domestic energy, it doesn’t need

South Africa has the potential to attract more green investments by implementing policies and initiatives that promote the use of clean energy and sustainable development

Solar panels are growing in popularity in domestic, commercial and rural settings. Marlenique Estate, Stellenbosch, South Africa.

Credit: New Southern Energy

From 2024, Cape Town bus company Golden Arrow will add 60 e-buses to its fleet every year.

Credit: Nick Fordyce/GreenCape

to pay the main rate of CCL on certain supplies. A company can also claim “enhanced capital allowances” when buying energyefficient, low or zero-emission technologies, such as electric vehicles or zero-emission trucks. This reduces the amount of tax to pay. A company can also obtain tax breaks if it sends waste from landfills to be recycled, incinerated or reused.

THE EUROPEAN GREEN DEAL

Meanwhile, in 2019 a law on climate protection was introduced in Germany. The law includes, among other measures, tax incentives for energy-efficient renovation measures in residential buildings or a mobility bonus for people who commute to work. The “European Green Deal” – with the aim of achieving climate-neutral business activity by 2050 – also gives the tax policy a decisive role in the transition to greener and more sustainable growth.

By 2030 Germany plans to produce at least 65% of all its electricity from renewable sources, and all electricity generated in the country should be greenhouse-gas neutral before 2050.

To secure the green transition, the German government plans to invest €1.5-billion in green hydrogen to help decarbonise the economy. Such measures send a clear message to investors that renewables will be supported and builds confidence.

Meticulously prepared top-down plans of a country on sustainable development give potential investors a defined road map and show investment opportunities in a clear way.

In South Africa, incentives to fast-track the transition to a green economy have hardly moved the needle, amid lack of clarity on key government policies. The political will is there, for the most part. What is needed is urgent and decisive action.

COLLABORATION IN THE WESTERN CAPE

The energy crisis will not be fixed by any one stakeholder and the collaboration of the public and private sectors will be the catalyst for getting this right. The Western Cape is taking the lead on that front with Premier Alan Winde recently stating that the province is looking into ways in which private businesses can be provided with the necessary support to ramp up more investment

into alternatives. The province has always emphasised the importance of intensifying and expanding the green energy drive by boosting relations with local and international partners.

South Africa has the potential to attract more green investments by implementing policies and initiatives that promote the use of clean energy and sustainable development. This could include setting clear renewable energy targets, providing lucrative financial incentives for clean energy development and creating a predictable regulatory environment.

By implementing policies and initiatives that promote clean energy and sustainable development, South Africa can accelerate the massive rollout of renewable energy, crucial to end the crippling loadshedding crisis. But this will require a comprehensive and coordinated approach that involves the government, private sector and civil society. Only then can SA build a much more attractive environment for green investors, accelerate the drive to a low-carbon economy, and end loadshedding which has become the biggest handbrake on the economy

For more information about Wesgro: www.wesgro.co.za

Wrenelle Stander, CEO of Wesgro

Credit: Versofy Solar

The green economy has many subsectors. Gestamp Renewable Industries is making wind towers in the Atlantis Special Economic Zone (ASEZ) near Cape Town. Credit: GRI/GreenCape

A recent study conducted on behalf of Wesgro shows that there is a growing appetite to invest in the green economy globally and many governments are putting in place clear and targeted measures to make it easier and more incentivised for players in that market.

WHAT ARE THE INTELLECTUAL PROPERTY CONSIDERATIONS OF THE AFRICAN CONTINENTAL FREE TRADE AREA?

IIt was decided at the Assembly of Heads of State and Government in Addis Ababa in January 2012 to fast-track the establishment of an African Continental Free Trade Area (AfCFTA) to boost intraAfrican Trade. As of May 2022, 43 countries within the African Union have ratified the agreement establishing AfCFTA and are now State Parties of AfCFTA. Only State Parties have rights and obligations under the AfCFTA agreement.

The success of AfCFTA is largely dependent on negotiations and the cooperation of member states of the African Union and subsequently State Parties of AfCFTA. The AfCFTA negotiations take place in three phases.

Phase I covers protocols on trade in goods and services, and rules and procedures on settlement of disputes. Regarding PhaseI, AfCFTA has reached about 87.7% agreement on the rules

The African Continental Free Trade Area (AfCFTA), which forms part of Agenda 2063, has the potential to integrate African countries, boost intra-African trade by eliminating tariffs and non-tariff barriers and reduce poverty in Africa. The agreement covers trade in goods and services, investment, intellectual property (IP) rights, competition policy and ecommerce. Chris Mhangwane, associate, and David Cochrane, partner, at law firm Spoor & Fisher, look at the intellectual property implications of the agreement.

Credit: Romain Dancre on Unsplash

of origin (RoO) on the protocol on goods. The outstanding RoO include some clothing and textile products, sugar and automotive products. This means that tariffs may be eliminated on 87.7% of goods so far.

Phase II covers protocol on intellectual property rights, investment and competition policy. Phase III covers ecommerce.

According to Wamkele Mene, Secretary-General of AfCFTA, the preliminary process has started for Phase II negotiations on competition policy, investment protection and intellectual property rights.

The negotiations are ongoing and there is a directive to conclude the negotiations on Phase II, including the rules that are required for intellectual property rights, by the end of 2022.

Article 4(c) of the Agreement provides that “State Parties shall cooperate on investment, intellectual property rights and competition policy.”

The aim behind AfCFTA Phase II Protocols appears to be limited to cooperation, rather than the replacement of, for example, intellectual property laws in the different African countries. This is not surprising given that Intellectual Property (IP) rights are generally territorial in nature.

WILL PRECEDENT BE FOLLOWED?

It will be interesting to see how AfCFTA will deal with IP rights in this regard and whether they will follow the African Regional Intellectual Property Organization (ARIPO), Organisation Africaine de la Propriété Intellectuelle (OAPI) regional model, or a hybrid-IP model that would be flexible enough to allow the different African countries to manage their IP legislation and cooperate with other African countries in terms of non-binding IP recommendations.

ARIPO provides for regional registration and administration of IP rights through a central office while permitting member states to guard their national IP law and IP offices, which simplifies IP rights protection for applicants who wish to invest in the region.

Unlike in ARIPO, IP registration in OAPI automatically extends to all member states of OAPI and there is a single law covering

all members states. It is not possible to have IP protection in only some of the member states but not others in OAPI. It is suggested that AfCFTA’s IP Protocol should include the following:

• create a common coordination and an operational cooperation mechanism that would enable the countries to share experience, stimulate linkage, diffuse knowledge, and collaborate in various matters such as the examination of patents and the enforcement of IP rights

• provide for regional exhaustion of IP rights

• oblige members to ensure the protection of geographical indications (GIs), either through a sui generis system or by certification and collective marks

• draw up a position on plant-variety protection (PVP) by determining the minimum standards on plant-variety protection or implementing a substantive law

• develop and implement regulations to enhance protection of traditional knowledge, cultural expressions and genetic resources.

Ideally, the chosen IP model should meet the objectives of AfCFTA and the specific needs of each country.

The creation of AfCFTA provides a unique opportunity to integrate African countries, boost intra-African trade by eliminating tariffs and non-tariff barriers and to reduce poverty in Africa. If the agreement is fully implemented by 2035, it is estimated that over 30-million Africans would be lifted from extreme poverty

About Spoor & Fisher

Spoor & Fisher is Africa’s largest specialised intellectual property law firm, with African roots and global reach. The firm specialises in all aspects of IP law, including trademarks, copyright, patents, registered designs, anti-counterfeiting, commercial/ transactional work involving IP, and litigation in these fields. Spoor & Fisher is ranked in the top band in the latest editions of leading legal directories, both local and international, and has a reputation for pioneering thought leadership and contributions to IP law and academia. Clients have trusted the firm to protect, manage and enforce their IP across Africa and the Caribbean for over 100 years. For more information: www.spoor.com

The aim behind AfCFTA Phase II Protocols appears to be limited to cooperation, rather than the replacement of, for example, intellectual property laws in the different African countries.

43 countries within the African Union have ratified the Agreement establishing AfCFTA and are now State Parties of AfCFTA. It is not possible to have IP protection in only some of the member states but not others in OAPI

Credit: Dominika Roseclay/Pexels

AFRICAN BUSINESSES SHOULD DIVERSIFY SUPPLY CHAINS TO MITIGATE THE GLOBAL LOGISTICS CRUNCH

Philip Myburh, Head of Trade and Africa-China, Business and Commercial Clients, Standard Bank, comments on turmoil in trade and logistics, a situation only made worse by Russia’s invasion of Ukraine.

TThe world of international trade is dealing with a perfect storm of challenges on multiple fronts. This is having adverse consequences for global supply chains, many of which rely on exports to and imports from China – where much of the friction is emanating from

With the rollout of global vaccination programmes continuing at a healthy pace, there has been cautious optimism that economic activity will continue to recover and return to a semblance of normality. However, as it stands, the trade ecosystem is anywhere but in a normal state of operation and in no shape to meet the uptick in demand for goods and supplies.

The Covid-19 pandemic had wide-reaching impact on international trade, disrupting long-established trade and travel routes while significantly shifting levels of supply and demand.

One of the key drivers of the misallocation of trade is the fact that when consumers were home-bound, spending on services was replaced by increased spending on goods. This was exacerbated by

increased spending power from stimulus programmes in places like the United States. Unfortunately, logistics service providers didn’t anticipate the extent of this demand impact on supply chains, which placed pressure on a system that is still trying to play catch up.

Additionally, supply chains continue to be disrupted by port closures, limited air freight capacity and factory shutdowns or restrictions, particularly on the China side. If any trace of Covid-19 is detected on a product, China will close the associated line down until it is deemed safe again (this could be for months at a time). Ships coming into that line might already be halfway there and are then forced to divert from their typical lines to other locations or countries to offload stock.

It has taken China multiple decades to get to an efficient, optimal flow of its shipping vessels and lines. It is an intricate system that determines which goods, container sizes and types of ships are used on which line. If that system is shut down. overnight and certain parts are activated sporadically, it results in inefficiencies

If any trace of Covid-19is detected on a product, China will close the associated line down until it is deemed safe again

China has taken decades to build up an efficient logistics chain.

Credit: Jason Yuen on Unsplash

with containers stuck in certain parts of the world because the system is out of kilter. This leads to a critical shortage of containers and causing shipping costs to skyrocket. Ultimately, it is the end consumer that will bear the brunt of increased costs.

While China is very much committed to enhancing relations and trade with African economies, it is focusing its energy on unlocking trade blockages on more profitable trade routes such as those with developed economies like the United States, Europe and Southeast Asia.

AFRICAN IMPACT

Unfortunately for the African continent, whose largest trade partner is China, this is having a significant impact. The continent is a net importer and relies heavily on imports from China. Without shipping vessels coming through to African harbours with containers to offload, it creates a multiplier effect as there is then a lack of containers to export goods out of the continent. While a significant percentage of global trade also happens in aviation, very few planes flew in and out of Africa during the various lockdowns, including the China corridor, which means the continent lost and is losing further capacity to send and receive goods.

China has also instituted additional measures on importing goods from the rest of the world. For example, it has a differentiated policy with regards to frozen goods compared with other countries. Its departure point is that Covid-19 can be

transmitted on frozen goods. So, for a business looking to export frozen seafood to China, it suddenly takes longer, costs more and becomes a more rigorous process as the product must go through Covid-19 checks at Chinese points of entry.

All these factors have left African businesses, who are feeling the brunt of shortages in stock and an increased cost of logistics, in a tight spot. With significant uncertainty over the short to medium term, the diversification of supply chains is therefore critical for businesses to weather challenges in the short term and to reduce reliance on a specific environment, geography or supplier. The more you can diversify, the better.

There are expectations that Africa’s trade challenges with China will resolve in the short term and China will undoubtedly remain a key supplier and trade partner to Africa. It is also important to remember that China is an exceptionally large country. By way of example, there are cities in China that are as far from each other as Johannesburg from Nairobi, so if there is a challenge or a Covid-19 outbreak in one area it still leaves multiple alternatives still within the country.

But there is also an opportunity to look for trade partners, suppliers or clients on the continent itself. Of course, Africa’s evident limitations in certain sectors and logistics capabilities hamper optionality. However, the African Continental Free Trade Area (AfCFTA) is aggressively driving opportunities among African countries and working to resolve challenges hindering inter-Africa trade.

SOLUTIONS AVAILABLE

With solutions such as Trade Club and our Africa China Trade solutions, Standard Bank is playing a key role in supporting businesses with all elements of trade including access to relevant information, connecting them to reputable suppliers and buyers.

Standard Bank also advises its clients on appropriate insurance solutions to help mitigate associated risks, with various financial solutions available that help to de-risk certain elements of the trade process.

Lastly, Standard Bank’s Trade Suite takes full ownership of our clients’ logistics needs so that all the challenges experienced throughout the process are managed by us on behalf of the customer.

In times of uncertainty, businesses want to make sure that they have the right partnerships. With Standard Bank’s diverse footprint, experience and solutions, it is the financial services partner to help businesses navigate these stormy seas whether the aim is to grow or fortify their businesses (or both)

The continent is a net importer and relies heavily on imports from China. Without shipping vessels coming through to African harbours with containers to offload, it creates a multiplier effect as there is then a lack of containers to export goods out of the continent.

AfCFTA is aggressively driving opportunities among African countries and working to resolve challenges hindering inter-Africa trade.

Container traffic keeps modern economies functioning. Credit: Fatih Turan/Pexels

Standard Bank’s Head of Trade and Africa-China, Business and Commercial Clients, Philip Myburgh

“BEST PLACES IN AFRICA” WILL SHINE A SPOTLIGHT ON AFRICAN BRANDSA BRANDS

Despite being rich in valued mineral resources, enviable indigenous fauna and flora, Africa attracts roughly only 5% of the world’s inbound tourism and FDI.

Brand Africa has launched “Brand Africa | Africa’s Best Places”, a pan-African initiative to recognise and rank the best places on the continent for tourism, investment and citizen mobilisation. The goal of the initiative is to inspire pride, raise standards and grow the competitiveness of African places – countries, cities and destinations. The inaugural awards and rankings of the “Brand Africa | Africa’s Best Places” will be celebrated and published in 2022.

The “Brand Africa | Africa’s Best Places” initiative builds on the inaugural Brand Africa Forum in 2010, which convened African and global place-branding decision-makers and thought leaders to reflect on how African nations individually and the continent collectively can develop a supranational competitive advantage.

Rwanda’s Volcanoes National Park, home to famous mountain gorillas, could be a contender for “Best Places in Africa”.

Credit: Visit Rwanda

Every year since then, Brand Africa has announced the “Brand Africa 100 | Africa’s Best Brands”, the widely referenced panAfrican survey and ranking of brands in Africa, which over the past 10 years has established that only 20% of the most admired brands in Africa are African.

The new initiative was announced by Brand Africa chairman, Thebe Ikalafeng, on the sidelines of the Intra-Africa Trade Fair 2021

(IATF 2021) which took place in Durban, KwaZulu-Natal, South Africa, in November 2021.

“Despite being rich in valued mineral resources, enviable indigenous fauna and flaura, a youthful population and being the second-most populous continent accounting for 17.5% of world population, Africa attracts roughly only 5% of the world’s inbound tourism and FDI,” says Ikalafeng. “Recognising Africa’s Best Places will inspire pride in African places, enhance their reputations and competitiveness, grow tourism and investment and ultimately contribute to the greater development and image of the continent,” he concludes.

The “Brand Africa | Africa’s Best Places” initiative is structured into two primary categories: (1) adjudicated awards and (2) rankings. In the adjudicated awards category, African private and public institutions, agencies and practitioners can submit entries for initiatives and campaigns for tourism, trade and investment, economic development and citizen mobilisation implemented internally in Africa or externally for Africa.

In the rankings category, an independent pan-African survey among citizens, visitors and investors will be undertaken to determine the best places for tourism, investment and to live. Reflecting on the pandemic and the context of the IAFT 2021 whose theme is focused on the African Continental Free Trade Area (AfCFTA) which aims to accelerate intra-Africa investment and trade from 18% to 50% in 2030 through a single market for goods and services across 55 countries, Ikalafeng, who has been to every country in Africa, believes that the highlighting of Africa’s Best Places and the championing of “Made in Africa Brands,” will

Thebe Ikalafeng, Brand Africa chairman

Credit: World Tourism Organization

The Intra-Africa Trade Fair 2021 was the backdrop for an announcement of a new initiative to promote African brands in tourism, investment and citizen mobilisation. Brand Africa is the body behind the idea, which aims to see participating African brands grow and flourish.

Best places categories

The “Brand Africa | Africa’s Best Places” will be awarded for effective strategy, implementation and return on investment for nation, city or destination branding initiatives across six categories:

inspire mobilise African entrepreneurs, grow tourism, trade and investment and accelerate industrialisation. This will Africa’s growth, competitiveness and in a post-pandemic world where nations are

advisory council for the initiative includes experts such as Dr Keith Dinnie, a global authority on city, region and country-brand management and author of a textbook on nation branding; Kwame Senou, VicePresident at Opinion and Public in Benin and Ivory Coast and Vice- Chairman for Brand Africa Francophone Africa and Central Africa; New York-based Eloine Barry, the CEO of Africa Media Agency; Kwakye Donkor, the CEO of Africa Tourism Partners and Masego Maponyane, broadcaster, actor, traveller, entrepreneur and philanthropist.

inspire and mobilise African entrepreneurs, grow tourism, trade and investment and accelerate industrialisation. This will ultimately contribute to Africa’s growth, competitiveness and distinctiveness in a post-pandemic world where nations are increasingly having to look internally for sustainability. The inaugural advisory council for the initiative includes experts such as Dr Keith Dinnie, a global authority on city, region and country-brand management and author of a textbook on nation branding; Kwame Senou, Vice-President at Opinion and Public in Benin and Ivory Coast and ViceChairman for Brand Africa Francophone Africa and Central Africa; New York-based Eloine Barry, the CEO of Africa Media Agency; Kwakye Donkor, the CEO of Africa Tourism Partners and Masego Maponyane, broadcaster, actor, traveller, entrepreneur and philanthropist.

The awards are open to global and African private and public institutions, agencies and practitioners. The adjudication will be done by a diverse and representative global African panel of eminent of place-branding experts, thought leaders, academia, policy and decision makers and practitioners For Information on other Brand Africa initiatives and the “Brand Africa | Africa’s Best Places” visit www.brand.africa/places

The awards are open to global and African private and public institutions, agencies and practitioners. The adjudication will be done by a diverse and representative global African panel of eminent of place-branding experts, thought leaders, academia, policy and decision makers and practitioners

For Information on other Brand Africa initiatives and the “Brand Africa | Africa’s Best Places” visit www.brand.africa/places

• Trade, Investment and Economic Development

• Tourism

• Private Public Partnerships

•Citizen Engagement

• Conservation and Sustainability

• Cross Border Collaborations

About Brand Africa

About Brand Africa

Established in 2010, Brand Africa is an inter-generational movement to inspire a brand-led African renaissance to drive Africa’s competitiveness, connect Africa and create a positive image of the continent.

Established in Brand is movement inspire a African drive Africa’s competitiveness, connect and a positive the continent.

The Royal Palaces World Heritage witness the of Dahomey in day Benin. Credit: UNESCO

The Royal Palaces of Abomey, a UNESCO World Heritage Site, bear witness to the historical Kingdom of Dahomey in modernday Benin. Credit: UNESCO

Brand Africa has announced the “Brand Africa 100 | Africa’s Best Brands”, the widely referenced pan-African survey and ranking of brands in Africa, which over the past 10 years has established that only 20% of the most admired brands in Africa are African.

Brand Africa has announced the “Brand Africa 100 | Africa’s Best Brands”, the widely referenced pan-African survey and ranking of brands in Africa, which over the past 10 years has established that only 20% of the most admired brands in Africa are African.

VICTORIA FALLS HAS A NEW LUXURY HOTEL

Covid-19 pandemic, which has only further demonstrated our confidence, and the confidence of our investment partners, to achieve this iconic architectural triumph.”

The Palm River Hotel opened to the public in December 2021, offering 31 rooms including 28 Deluxe Rooms, a Presidential Suite, an Executive Suite and an exclusive Villa. Phase two of the project will bring the number of rooms to 73 rooms and suites.

Brown acknowledged the hard work and resilience of the design and construction teams for their efforts to source materials, skills and labour from within the Zimbabwean borders. “During construction we have employed over 150 building labour and countless skilled senior staff from across the country. Furthermore, the opening of the hotel allows a further 200 employment opportunities for hospitality staff and personnel from within the local Victoria Falls region,” Brown added.

vision for the Palm River Hotel was a unique hotel offering luxury without compromising a sense of home comfort; unimpeded views which maintained shelter and privacy; the convenience of a central location preserved within a tranquil bubble.

The hotel is a joint investment by Old Mutual Zimbabwe and the Spencer’s Creek Group. Among the guests who attended the opening ceremony of Victoria Falls’ first 73-room hotel on the Zambezi River were the Mayor of the Municipality of Victoria Falls, Cllr Dhlamini, investment partner Old Mutual Zimbabwe, and members of the National Parks and Wildlife Authority.

Speaking at the ceremony, Jim Brown, CEO of Spencer’s Creek Group said, “Today we are surrounded by many establishments who have supported our vision of this impressive $24-million project.

The Spencer’s Creek Group has been in the tourism industry in Victoria Falls for 50 years and is renowned for its existing property, Ilala Lodge Hotel, located in the heart of Victoria Falls. We continue to participate, contribute and collaborate with all sectors of local government and the local business community.”

Brown noted the project’s duration: “The Palm River Hotel has been a substantial project, running over the course of two-anda-half years. We have endured dire circumstances through the

Brown credited the return of tourism confidence in Zimbabwe to the ongoing efforts of the government for their vaccine roll-out programme, the relaxation of the Covid-19 protocols and reopening of the land borders for tourism.

DESIGN AMBITIONS

The vision for the Palm River Hotel was simultaneously simple and complex: a unique hotel offering luxury without compromising a sense of home comfort; unimpeded views which maintained shelter and privacy; the convenience of a central location preserved within a tranquil bubble.

The Palm River Hotel has been inspired by the architectural style of the Queenslander, distinct in its savvy use of timber and corrugated iron and its consideration of climatic conditions. Highly-skilled and professional teams of Zimbabwean architects and interior designers have taken these principles and modified them to create a hotel that is at once aesthetic and functional, modern and timeless, cosmopolitan and perfectly suited to the local environment. The innovative blend of traditional East-Coast Australian design and the unique landscape of the upper Zambezi River has resulted in a brand new and distinctive landmark for Victoria Falls.

www.palmriverhotel.com

ABOUT SPENCER’S CREEK GROUP

Spencer’s Creek (Pvt) Ltd was founded in 1970, and completed its first establishment, Ilala Lodge Hotel, in 1991. The Palm River Hotel marks the group’s second hotel, both of which are located within minutes of Africa’s Natural World Wonder, Victoria Falls. The Palm River Hotel has been developed together with investment partner Old Mutual Zimbabwe Limited.

The opening of the new Palm River Hotel marked the completion of a project delayed by the Covid-19 pandemic and a new chapter for tourism at Victoria Falls.

The Palm River Hotel has opened on the banks of the Zambezi River.

The

AFRICAN EVENTS

Global Africa Network (GAN) is the media partner of the following upcoming events:

AFRICA ENERGY INDABA

Cape Town – 7 to 9 March 2023

The 15th Africa Energy Indaba Conference will discuss, debate and seek solutions to enable adequate energy generation across Africa. A diverse group of luminaries and high-profile speakers will share their real-world insights about the changing energy landscape in Africa. The 8th Annual Africa Gas Forum will be held. The Forum has been created to ensure a balance between country-specific opportunities as well as common issues that affect the whole region such as exploration activity, licensing rounds, development plans and the move to gas, new tax regimes, regional infrastructure projects, pipelines, LNG terminals, security, local content initiatives, investment requirements and other key upcoming projects. In addition to providing a platform for the most groundbreaking and diverse energy panels, the Africa Energy Indaba hosts a two-day energy exhibition where worldclass industry organisations demonstrate their commitment to provide the solutions Africa needs to meet its growing energy demands.

For more information: https://energyindaba.co.za/

WTM AFRICA 2023

CAPE TOWN – 3 TO 5 APRIL 2023

World Travel Market Africa is the only event where you can, according to the organisers, simultaneously generate sales leads, launch new products, enter new markets, raise brand awareness, size up your competition, conduct market research, command press attention and develop and maintain relationships.

World Travel Market Africa delivers the leading global events for the travel industry. One of six shows in the WTM portfolio, the Africa show was launched in 2014 under the Africa Travel Week  umbrella. Join over 6 000 travel industry professionals as they attend Africa’s leading and only business-to-business exhibition for both the inbound and outbound African travel and tourism markets. Mirrored on WTM flagship events like WTM London and the Arabian Travel Market in Dubai, WTM Africa delivers a proven mix of Hosted Buyers, Buyers’ Club members, media representatives, pre-schedule appointments, networking, evening functions and invited travel trade visitors.

For more information:

www.wtm.com/africa/en-gb.html

CAPE TOWN – 16 TO 18 MAY 2023

AFRICA’S TRAVEL INDABA 2023

DURBAN – 8 TO 11 MAY 2023

Africa’s Travel Indaba is an iconic African leisure trade show, owned by South African Tourism, with the specific objective of creating market access for a vast array of African leisure-tourism products.

Africa’s Travel Indaba is a three-day trade show preceded by a dedicated Business Opportunity Networking Day (BONDay) which seeks to create a platform for thought leadership, knowledge sharing and obtaining the latest in global trends and local insights. The BONDay programme is developed in close collaboration with global tourism organisations, continental experts as well as industry associations. The trade show exists to provide the ideal platform for African tourism exhibitors to showcase their offerings to international and local buyers, destination marketing companies and leisure tourism services partners. It is the most formidable platform on the continent to meet face-toface with the most influential buyers in the world, and to gain access to Africa’s excellence and its endless possibilities. These are the business opportunities and quality connections that will shape Africa’s tomorrow.

For more information:

www.indaba-southafrica.co.za/

Enlit Africa hosts Africa’s entire power and energy industry in this premier conference and exhibition space. As the leading platform, we gather Africa’s energy community for three days to meet and inspire each other in Cape Town. Enlit Africa includes live and digital events, exhibitions, and exclusive one-on-one interviews with leaders in the energy sector, together with product launches, innovative technology showcases and more. For more information: https://enlit-africa.com/

ENLIT AFRICA

ANGOLA

A major oil producer is trying to diversify its economy.

TThe death in 2022 of former president José Eduardo dos Santos brought to an end the era of a particular kind of anti-colonial politics in Angola. Although he gave up the presidency in 2017, the legacy of dos Santos and the influence of his children on national politics and economics sparked increasingly heated debate

His anointed successor, President João Lourenço, did not act as though he was beholden to dos Santos, despite the latter having held on to power for 38 years. Among the people fired by the new president were the former president’s daughter, Isabel dos Santos, who had been the chief of Sonangol, the state oil company. She moved to Spain.

MPLA won just 51% of the vote in the country’s fourth post-war elections held in 2022, with long-time rivals (and former civil war opponents) UNITA gaining 44%. The civil war started soon after Angola gained independence from Portugal in 1975 and lasted 27 years. The MPLA had the support of Cuba while UNITA were backed by South Africa, who eventually invaded Angola in an attempt to defeat MPLA and defend their occupation of Namibia (then known as South West Africa).

Capital: Luanda. Other towns/cities: Huambo, Lobito, Lubango. Population: 34.7-million (2022). Real GDP (PPP): $203.71-billion (2020). Real GDP per capita: $6 200 (2020). Currency: Kwanza. Regional Economic Community: Southern African Development Community (SADC), Community of Portuguese Language Countries (CPLP). Land mass: 1.25-million km2 Coastline: 1 600km. Resources: Bauxite, copper, diamonds, feldspar, gold, iron ore, petroleum, uranium, bananas, cassava, citrus, maize, pineapples, potatoes, sugar cane, sweet potatoes. Main economic sectors: Oil contributes 50% of GDP, more than 90% of the country’s exports and more than 70% of revenue collected by the government. Angola belongs to OPEC. Other sectors: Agriculture, mining, cement, basic metal products, fish and food processing, brewing, tobacco products, sugar, textiles. New sectors for investment: Fintech (laws relating to payments and telecommunications have been tightened), ICT. Key projects: The World Bank is supporting a Growth and Inclusion Development Policy Financing Project for Angola, with the aims of supporting the government of Angola to achieve more sustainable and inclusive growth, through a macro-financial and institutional environment that is conducive to private-sector-led growth and financial and social inclusion. Chief exports: Crude petroleum, diamonds, natural gas, refined petroleum, ships. Top export destinations: China, India, UAE, Portugal, Spain. Top import sources: China, Portugal, Nigeria, Belgium, US, South Africa, Brazil. Main imports: Refined petroleum, scrap vessels, meat, rice, palm oil.

Infrastructure: Airports 32 (paved); railways 2 852km (2014); roadways 26 000km, of which 13 600km paved (2018). Major seaports: Cabinda, Lobito, Luanda, Namibe. LNG export terminal: Angola Soyo. Merchant marine: 54 (cargo 13, oil tanker 8, other 33, (2021). Pipelines: 352km gas, 85km liquid petroleum gas, 1 065km oil, 5km oil/gas/water (2013). ICT: Mobile subscriptions per 100 inhabitants: 45 (2020). Internet percentage of population: 36% (2020). ICT Development Index 2017 (ITU) ranking: 160 in world. Climate: North varies between dry, cool season (May to October) and hot, rainy season (November to April). South is semi-arid along the coast north to Luanda, which is part of a narrow coastal plain. The country shares two major rivers with its neighbours, the Zambezi and the Okavango. The province of Cabinda, a major oil-producing area, is an enclave separated from the rest of the country by a part of the Democratic Republic of the Congo.

Religion: Mostly Christian with a small majority Roman Catholic.

Photo: Mustafa Omar on Unsplash

Photos: Pixabay

GLOBAL AFRICA NETWORK

Founded in 2004, Global Africa Network Media (Pty) Ltd (GAN) is a business-to-business print and digital media company based in Cape Town, South Africa.

AFRICAN BUSINESS

A proudly-African publisher of: Journal of African Business, a quarterly publication for the African market.

South African Business, an annual title, and nine regional publications profiling South Africa’s provinces as business and investment destinations.

OTHER QUARTERLY TITLES INCLUDE: Blue Chip , which reaches all Certified Financial Planners (CFPs) in South Africa, and Blue Chip Digital at www.bluechipdigital.co.za. Opportunity , a niche businessto-business publication and official publication of the South African Chamber of Commerce and Industry (SACCI).

TradeInvestAfrica , a monthly digital publication promoting business, trade and investment opportunities in Africa to potential investors around the world.

Service, Leadership in Government , which has an audience throughout the public sector: Local, Provincial and National Government, as well as government agencies and parastatals.

www.globalafricanetwork.com has an “ Africa Focus ” section and runs updated news and links to African investment projects and business news.

GAN has considerable experience in creating and publishing custom print and digital publications, including targeted Investment Prospectuses. See www.globalafricanetwork.com/e-books

MAURITIUS

The financial services sector is vibrant and growing.

MMauritius gained independence from the United Kingdom in 1968. English is the official language of the legislative body but Creole is the dominant language with Bhojpuri and French accounting for about 10% between them

Just two years before independence, Britain expelled about 2 000 residents of the Chagos archipelago and leased islands to the US for 50 years. A military base was built on the largest island, Diego Garcia. In 2019 the UN International Court of Justice gave a non-binding legal opinion that the islands had not been legally separated and that Britain should end its control.

Former President Sir Anerood Jugnauth became Prime Minister for the third time in 2014 but resigned in 2017 to make way for his son Pravind Kumar Jugnauth, the leader of the Militant Socialist Movement party. The president is head of state in a Westminster-type system and the role is largely symbolic.

Capital: Port Louis. Other towns/cities: Vacoas-Phoenix, Beau Bassin-Rose Hill, Curepipe, Quatre Bornes. Population: 1.3-million (2022). GDP: $14-billion (2019). Real GDP per capita: $19 500 (2020). Currency: Mauritian rupee. Regional Economic Community: Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), Indian Ocean Rim Association. Landmass: 2 040km 2 (all islands), Island of Mauritius 1 864km 2 Coastline: 177km. Resources: Sugar cane, tea, banana, pulses, potatoes, fish. Main economic sectors: Sugar milling, textiles, tourism, financial services. Other sectors: Mining, chemicals, metal products, transport equipment, machinery. New sectors for investment: Creative sector (film), higher education, ICT, retail, medical tourism. Key projects: Positioning as a hub for the rest of Africa for logistics, re-export and trade. Smart city projects. Chief exports: Clothing, sugar cane, processed fish, molasses, cut flowers. Top export destinations: France, US, UK, South Africa, Madagascar, Italy, Spain. Top import sources: India, China, France, South Africa. Main imports: Chemicals, equipment, foodstuffs, manufactured goods, petroleum products. Infrastructure: Export Processing Zone; Sir Seewoosagur Ramgoolam International Airport at Plaisance about 50km from Port Louis, an airstrip at Plaine Corail on Rodrigues; 2 150km of roads, 98% paved; Port Louis harbour has a container terminal and terminals for sugar, oil, wheat and cement.

ICT: Mobile subscriptions per 100 inhabitants: 150 (2020). Internet percentage of population: 65% (2020).

ICT Development Index 2017 (ITU) ranking: 1 in Africa, 72 in world. Climate: Maritime subtropical modified by south-east trade winds. Cyclones can occur. Warm, dry winter (May to November); hot, wet, humid summer. A fertile central plateau is surrounded by mountains and the island is ringed by coral reefs. Religion: Hindu, Christian about 30% (majority Roman Catholic), Muslim, other.

Photo: Mustafa Omar on Unsplash

Photos: Pixabay