Newtrendsin theenergysector

WhatisGFA’sexpertise?

GFAC onsultingGroupisoneof theleadin gE uropea nc onsulting firmsinthede ve lopmentcooperationsector.For ove r40y ear s,we ha ve pr ov idedconsultingservices in ove r1 30countriesfromour headquarter sinG ermany.A frica hasalw ay sb ee nak ey re gio nf or us. We conductcomple xs tudies andprojectsonbehalfofleading de ve lopmentagencies,ministries, andgo ve rnmenta la gen cies .O ur ex pertise co ve rs manyareasthat ar ec rucial fo rs ustainable de ve lopmentin Af rica.

WhatisGFA’s

Contributiontotheenergy Sectortransformation

in Africa?

Un derourClimate &E ne rg y Cluster,wei mplementsustainabl ee ner gy pr oject sa lon gt he va luechain –f ro mg eneratio nt o consumption .W eh ave gathered ex pertise,knowledge,andskill s todealwithcomple xc hallenges inth ee ner gy sectorthus helping Af ricancountriessupplytheir pe opl ew ithcleanan da ffordabl e electricity

Whatarethenewtrends intheenergysector?

Digita lisationha sl ongbecom e anessentialconsideratio nint he ene rg ys ector.C ur re ntl y, app ro ximat ely70 %o fo urprojectsha ve digitalcomponents .T heproductionanduseofgreen hy drogen wil lbea gamechange ri nt he ener gy se ctor(seeH2Globa lA dv isor y, ac ompanyofGFAG ro up: www.h2-global.d e) .AtG FA ,w ea re buildingcompetenciesinthistopic,whichhasbecomeaninte gr al partofourportfolio.

Theuerkauf, Director,Energy Depar tment, GFA Consulting Group

chairman. “We hopeInvestin AfricanEnergywill foster a newera of improved cooperation.”

Meanwhile, the corridorsof politicalpower are also wakingup tothecontinent’s strategic importance, withseveral ministries in ChancellorOlaf Scholz’s administrationupdating theirAfrica strategies to align with the shifting international dynamics.

Delegationsgetbusy

InMay 2022,Chancellor Scholz visited Senegal,Niger and South Africa,accompanied by a German business delegation keen to deepen trade, investmentandenergy cooperation. Vice-Chancellor Robert Habeck(who is alsothe minister for economic affairsand climate action) followed suit in December withvisitstoNamibia andSouthAfrica.

“African countries are gaining inimportance for the German administration,” Kannengiesser says. “Germanpoliticiansare also becomingincreasingly aware that the German privatesector isan importantpartnerincooperation with Africancountries,” headds

Kannengiesserpointsto reforms totheinstrumentsof foreign tradepromotionputinmotion by Habeck’s ministry.TheMinistry forEconomic Cooperation andDevelopment’snew ‘Africa Strategy’isanother exampleof how GermanthinkingaboutAfrica is evolving(seepage88).

Germany isalso leadingthe charge inengagingwithAfrica atthemultilateral level,says Kannengiesser. TheG20 Compact with Africa was initiated under the German presidency in2017 topromoteprivateinvestmenton thecontinent Along with the 2021 GlobalGateway initiative that provides theframework for the EuropeanUnion’s externalinvestment, these effortssignal a new normalwiththecontinent.

LastJune, ChancellorScholz invited President Cyril Ramaphosa ofSouthAfricatoattendthe G7 SummitinMunichashisguest. He said thatheconsidered SouthAfrica a key partnercountry.

Despite all therhetorical overtures, Kannengiessersays the German government needs to do more tomeetthe demands for private-sectorcooperationthat Afrika-Vereinhearsabout from its Africanpartners: “Unfortunately, we stillsee far too few concrete approaches by the German administrationtosupport German companies inAfricaeffectively.”

Greenopportunities

Inothersectors, Kannengiesser notes that EastAfricais experiencing a strongdrive fora circular economy, while SouthAfricais becominganattractive market for Germanelectric cars.

Bienesays sheasked the German Association ofthe Automotive Industrypresident,Hildegard Müller, tosupport the push for cleaner fuel quality duringMüller’s recent visittothe region.

Poorfuel quality“limits us, to a certain extent, intermsofmodels we cansupply”, Bienesays. Cleaner fuel would also helpaddress climate change on the continent.

Despitethechallenges,Biene says Africa’s economic potential is “huge” and Germancompanies such as VW want in.

“Ithink Europe has realised this istheone and onlygrowing region it wouldbe goodtobepartofwhen itkicks off,” shesays “Everybody wantstotapintoit. And we want to be in thefirst wave.”

Germancars,African supplychains

VolkswagenGroupSouthAfrica (VWSA)operates thebiggest car factoryonthe continentinKariega, in the coastal provinceofEastern Cape. There,thecompanybuilds several models fromitsPololineof cars, employing about4,000people.

MartinaBiene, managing director and chairpersonforVWSA,saysVW believesinthe region’s potential. “Everywhere I go, Itelleverybody thatwewanttoventure intoAfrica – andthatwe’vestartedthatjourney already,” shesays.

TheVWSAbosshas a laundry listof itemsthattheGerman governmentand African states can assistwith to boost the auto industryonthe continent.

“Weneedsupportinvehicle production,”saysBiene.“Wewould wantGermanytoencouragesuppliers tocometoAfricatogetherwith usasanOEM[originalequipment manufacturer],tobeinaposition tomanufactureordomorethan vehicleassembly.”

“Howcanyougrowanindustry tothelevelandstandardsthatweas aEuropeanheritagemanufacturer wouldbehappywith?[With]skills transfer,education[andby]encouragingsuppliers.”

Biene addsthatAfricacan help lay the groundwork forfuture investment bytightening up its regionalauto policy, looking into the development ofcleanerfuelsandcurtailing a sizeablesecond-handcar market

“We need automotive policiesto increase new-cardemand andto come to a thresholdofvehicles.The same applies to South Africa,” saysBiene. “What limitsinvestment onlocal content isthatwe need morevolume.”

TheKariegafacility ison the smallersideforVWand is comparable totheOsnabrückandPune plants inGermanyandIndia.“The higherthe productionnumbers,thebetterthe localisation,andthe moreattractive forsuppliers,”saysBiene.