26 Sep

The growing importance of renewable power in Africa

To fuel economic growth and support its growing population, Africa needs power. Renewable energy technologies and distributed infrastructure are playing an increasingly important role in the continent’s energy mix.

Around the world, 1.2 billion people live without access to electricity. Half of them are in sub-Saharan Africa. Africa trails the rest of the world in terms of access to electricity by a huge margin. In 2014, less than half the population of the continent had electrical power. Everywhere else, the equivalent figure has now passed 90%. If the region is to continue the strong pace of economic growth it has achieved since the end of the 1990s, better access to energy, especially electrical power, will be essential.

The International Energy Agency (IEA) expects demand for electricity in sub-Saharan Africa to rise considerably faster than the region’s GDP growth for at least the next 25 years. Fulfilling that demand will require electricity production in the region to increase by a factor of more than three by 2040 to 1,300 terawatt hours.

Africa’s energy challenge isn’t all about resources. The continent has plenty of coal, gas and oil, for example. What it lacks is generation capacity and, just as importantly, the transmission and distribution infrastructure to deliver that power to the homes and businesses where it is needed most. Progress in building that infrastructure has been painfully slow. Between 1990 and 2010, the fraction of the region’s population with access to electricity increased by only 0.2 percentage points a year, as new energy investments struggled to keep up with overall population growth.

A brighter outlook

Over the past seven years, Africa’s electrification rate has accelerated to around 1 percentage point a year. That’s a fivefold increase in the share of the population that gains access to electricity every year. But it still isn’t fast enough. Analysts at McKinsey & Company estimate that electrification rates on the continent will only reach 70 or 80% by 2040, noting that an electrification rate of less than 80% is almost universally associated with low per capita GDP and widespread poverty.

There’s growing consensus that, to make better progress toward full electrification, Africa will need a different approach. The continent’s phone systems provide a model. While older economies built centralised fixed line telephone networks first, Africa largely skipped that step with the rapid deployment of mobile telephone infrastructure, driven by entrepreneurial private sector companies. Africa’s energy networks may develop in a similar way, with renewable sources playing a leading role.

Energy infrastructure projects are often big, expensive and technically complex. Building them is usually the domain of large, international companies. In Africa, which has few local large-scale engineering companies, that is especially the case. Many of the world’s largest energy players have been involved in African energy investments over the years, but most recently it is contractors from China that have transformed the pattern of energy development on the continent.

China’s involvement in Africa is a core part of Beijing’s “Going Abroad” policy, which was first introduced in the country’s 10th Five-Year Plan in 2001. The motivation for the policy is simple and logical. Closer relationships with developing economies in Africa and elsewhere help develop new markets for Chinese goods and services overseas, and secure access to important commodities needed to fuel the economy at home.

IEA analysis suggests that Chinese firms were responsible for 30% of the utility-scale new power generation capacity built in sub-Saharan Africa between 2010 and 2015. Between 2010 and 2020 Chinese contractors are expected to install around 28,000 kilometres of new electricity transmission and distribution lines.

Chinese companies have been pragmatic in their choice of power technologies, building generation capacity to suit the fuel types available locally. The projects analysed by the IEA in its 2016 report include coal, gas, wind and hydroelectric power, as well as biomass and waste-to-energy facilities. Overall, however, the share of renewable energy technologies is significant, as engineering firms export technology and knowhow resulting from the huge investments in domestic renewable capacity that China has made in recent years.

Read more: How We Made It in Africa

29 Aug

Kwale titanium miner rebounds to Sh1.71bn full-year profit

titanium

Base Resources has rebounded to full-year profit of Sh1.71 billion (AU$21 million) for the period ended June 30 from $20.9 million (Sh1.70 billion) loss a year earlier, the Kwale-based miner announced on Monday.

The Australia-owned large-scale mining firm attributed the performance to increased sales volumes, rise in commodity prices and cost management measures.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 81 per cent to AU$109.7 million (Sh8.94 billion) from A$60.6 million (Sh4.94 billion) the year before.

The firm said sales revenue from the Kwale mine exports rose 28 per cent to AU$215 million (Sh17.53 billion) from AU$169 million (Sh13.78 billion) in June 2016, hitting a new record since it made first shipments in February 2014.

Ilmenite volumes rose by a marginal 4.4 per cent to 501,676 tonnes, rutile increased to 91,991 tonnes from 85,536 tonnes, while shipments of zircon climbed to 34,566 tonnes from 33,062 tonnes last year.

The company said it also sold 9,501 tonnes of low grade zircon, volumes which it did not ship last year. The minerals were sold at an average price of AU$338 per tonne (Sh27,560), a 19.86 per cent jump, it says.

In Summary

  • Base Resources attributed the performance to increased sales volumes, rise in commodity prices and cost management measures

source from Nation

29 Aug

‘Solar key to sustainable energy supply in Nigeria,’ says report

solar

In the oil-soaked West African nation of 187 million people, solar is slowly infiltrating every part of society in Nigeria. It is awakening entrepreneurial instincts, giving life to innovative payment models, and promising to restore at least some faith in the government’s ability to bring electricity to citizens used to frequent blackouts or no power at all.

A recent report produced by Power Nigeria, which is taking place from 5-7 September at the Landmark Centre in Lagos, highlighted the need for additional solar capacity in the country and what challenges the country faces to achieve this.

In 2017, financial closure is expected on at least some of the 14 solar plant projects announced in July 2016. If successful, they’ll bring a total of 1.2GW to Nigeria, largely in the north, far from most conventional generation capacity.

Nigeria is Africa’s most populous country and has power capacity of roughly 5GW (at peak in February 2016), but dropped to less than half that in January 2017.

Half of Nigerians have no access to grid-based electricity. About 40% of Nigerian grid-powered businesses use supplemental energy. The rule of thumb is 1GW is needed per million people, in a fully developed economy. That means Nigeria has a 181GW deficit. The 1.2GW of solar doesn’t make a dent.

Yet Nigeria aims for renewables to supply 30% of output by 2030. The social consideration is significant in a country suffering terrorist violence in the north, energy vandalism in the south, and poverty levels of 70%. One business solution is to initially provide smart metres only to those who pay bills, and use that revenue to build the infrastructure and subsidise other end-users. Instead, there is a push to get everyone a smart meter at once.

Despite the push for utility-scale solar, much of Nigeria’s solar power may start off-grid. As Nigeria’s growing community of solar PV entrepreneurs will tell you, anyone with a diesel or petrol generator is a potential solar client. In 2016, Nigeria imported US$23m worth of solar panels, not including integrated or plug-and-play solar kits. That makes Nigeria the world’s second largest solar panel importer among emerging economies, behind India, according to Bloomberg New Energy Finance.

Most of those panels weren’t meant for utility-scale projects. Nigerians have long sought out their own electricity sources, but for most, solar is not an obvious solution. It’s deemed expensive, they can be serviced poorly, and public awareness is low.

To help tackle these issues and bring the discussion of solar to the forefront, the Power Agenda conference at Power Nigeria will dedicate a day of discussion to different aspects of the solar chain. Verticals such as rural, urban and hybrid solar will be covered, as well as a session on supporting solar in Nigeria and how pay-as-you-go and mobile payment systems are changing the power business model.

Some of the key speakers on the day are: Olu Ogunlela, co-Founder, Gridless Africa; Tinyan Ogiehor, technical advisor (Solar PV), Solar Nigeria Programme (UK DFID programme); Suleiman Yusuf, CEO, Blue Camel Energy; Ifeanyi Odoh, regional sales manager – solar business, Schneider Electric; and Wale Rafael Yusuff, head of sales – Nigeria, Clarke Energy.

The 2017 edition of Power Nigeria will be the largest to date and is set to attract over 100 exhibitors from 11 countries, offering visitors a first look of some of the latest products available on the market covering a range of products relating to power generation, transmission and distribution. This year, there has also been a significant increase in country pavilions from one to three with representation from Turkey, China and India.

Some of the standout exhibitors this year include Cummins, Polycab, GWB Energy, Schneider Electric, Sterling & Wilson and Skipper Seil.

Power Nigeria draws on the strengths of Informa Industrial Group’s geographical foothold in the Middle East and Africa through its partner events Electricx and Solar-Tec in Cairo, and Middle East Electricity in Dubai, which holds the title of world’s largest power event.

Power Nigeria will take place at a new purpose built exhibition venue in Lagos – Landmark Centre, Nigeria from the 5-7 September 2017. Visitor pre-registration can be done online at www.power-nigeria.com

 

from how we made it in Africa

22 Aug

Nigeria: State Positioned for International Oil, Gas Dominance Despite Challenges

international oil

By embracing a digital revolution in its oil and gas facilities, Nigeria could propel itself from the shadows of persistent underperformance to become a global energy powerhouse. This will be a catalyst for industrialisation and growth in many other economic sectors too.

Digitalisation in the energy sector involves the better use of data to manage and control multiple operations. It drives efficiencies in energy management and automation systems. Importantly, workers in a digital industrial environment enjoy a massive increase in skills and productivity.

Digital development is not confined to new oil and gas facilities. Existing oil and gas infrastructure, from pipeline to refinery, can easily be upgraded to digital automation. This means that Nigeria’s ageing oil refineries in Port Harcourt, Warri, and Kaduna can be optimised with digitalisation.

These facilities were built as early as 1978 but could be made far more efficient and productive, thereby significantly reducing Nigeria’s dependency on imported petroleum products. The benefits of this investment would be measured in billions of dollars.

Effective integration of digital technologies could reduce capital expenditure in the oil and gas sector by up to 20 per cent, cut upstream operating costs by up to five per cent and downstream costs by up to 2.5 per cent.

Nigeria’s best approach will be a combination of local skills and knowledge, and the expertise and experience of a proven international partner able to deliver digital technologies and automation, together with traditional instrumentation and controls, across the entire energy value chain. This further supports backward integration of skills and technical competence in Nigeria’s limited skilled workforce.

A recent PricewaterhouseCoopers (PwC) report suggests that by end-2019 Nigeria could assume the status of the largest producer of refined petroleum products in Africa. The projection sees Nigerian exports exceed 300,000 bpd by 2019 – up 350 per cent from 2016 production of 65,000 bpd.

In this scenario, Nigeria becomes an international trading hub similar to Australia, Russia, Europe, and the U.S. Gulf Coast, while the entire West Africa region becomes energy self-sufficient by 2019, thus eliminating the need to source refined oil products from the U.S. and Europe.

Despite dwindling crude oil sales to the West, West African demand for Nigeria’s crude oil is set to rise dramatically. The region annually consumes 22 billion litres of petrol, and Nigeria’s domestic market accounts for 17 billion of those litres, yet the country still imports around 80 per cent of this energy.

With 37.2 billion barrels of proven oil reserves, Nigeria could easily meet this demand locally through modernisation and continued exploration. The country’s refining capabilities are currently underperforming and notoriously inefficient, due to lack of maintenance and underinvestment in technology.

Nigeria also struggles with ongoing vandalism of its oil and gas infrastructure. Pipeline insecurity has a devastating effect on oil production, with a staggering financial impact. Technology is a significant part of the solution to this challenge, as it enables real-time monitoring of infrastructure and quicker incident responses.

Port Harcourt refinery, for example, has capacity for 150,000 bpd of oil production but has been running at just 10 per cent capacity for the past three years. This is mainly due to its reliance on 1980s technology now regarded as obsolete in the global oil and gas sector.

The consequence is lack of preventative and reactive maintenance, inaccurate forecasts and allocations, and soaring energy costs. To boost productivity and returns, Nigeria’s energy operators should rapidly adopt and integrate digital technology that improves efficiencies and up skills staff.

Instead of being a threat to the workforce, digital technology redefines the role of the worker, and it has the potential to bridge the blue and white-collar worker, to create what is termed the ‘grey-collar’ worker. Humans and machines are therefore not competing for jobs, but working together to create a new type of talent, which is a vital component to sustained sector growth and maturity.

In the near future, Nigeria’s oil and gas operations will have real-time access to data at the click of a button, from any location on earth. This essentially connects a team of global experts collaborating in real-time to drive improvements in exploration and extraction, health & safety, pipeline security, distribution, refining and transportation of the finished products.

And with a potential $300billion added to the African economy by 2026 through the adoption of digitalisation, Africa’s largest economy will receive a significant portion of that figure to advance its burgeoning oil and gas market.

This in turn addresses the triple threat of unemployment, inequality and poverty – paving the way for a society where business success leads to socio-economic advancement, such as new business development and job creation, and essential new infrastructure projects that include schools, hospitals, transportation networks and housing.

To make this a reality, the Federal Government of Nigeria should include a robust digitalisation policy and supporting legislation in connection to its Economic and Recovery Growth Plan 2017-2020 (ERGP), which sets out the medium-term structural reforms to restore economic growth, invest in people and build a globally competitive economy.

One of its key priorities is to ensure power and petroleum product efficiency, which can only be achieved through a digital transition in the oil and gas sector.

Oil and gas operators in Nigeria should be early adopters of technology, their employees should be proactively trained in the application of the new technology, and the industry should be supported by an original equipment manufacturer (OEM) with proven global experience across the entire upstream, mid-stream and downstream value chain.

Tifase is the Chief Executive Officer, Siemens Nigeria, and a key player in the country’s push for investment and growth in the oil and gas sector

Source from allAfrica

14 Aug

Nigeria: Prepare for Life After Oil, Govt Advises Amnesty Beneficiaries

oil

Port Harcourt — As the world marked the United Nations 2017 International Youth Day saturday, the federal government has warned youth in the country, especially beneficiaries of the amnesty programme in the Niger Delta region to prepare for life after oil.

Speaking at a forum to mark the event in Port Harcourt, the Presidential Adviser on the Amnesty Programme, Gen Paul Boro, called on the Niger Delta youths to prepare for life after oil by making use of the skills, knowledge and experience they gained while undergoing training.

The forum was put in place by a non-governmental organisation (NGO), Nevido Media in collaboration with the NOA with the support of the Nigerian Youth Council and other bodies.

Boro called for paradigm shift in thinking and focus among the youths and beneficiaries of the amnesty, saying, “since it has become clear that oil will not last forever, there is need to prepare the youths for the future.”

He noted that the federal amnesty programme had the mandate to train 30,000 youths, out of which it had already trained 16,000.

Represented by the Head, monitoring and evaluation in the federal amnesty, Mr. Bestman Probel, Boro explained that this was why “the youths have been drawn into training in agriculture and skills while an exit programme whereby the youths after training are mobilised to start practicing the trade they learnt”.

In his remarks the Rivers state Director of NOA, Mr. Oliver Wolugbom, expressed concern that Nigerian youths have abandoned the old cherished value system and taken to kidnapping, cultism, armed robbery, thuggery and other odious practices that debase humanity.

“It is equally a source of concern that all the centrifugal forces such as separatist movements by ethnic bodies and their accompanying hate speeches are being bandied by the youths”, he said, adding that for peace to be built in the society, the youths must be properly positioned while the leadership re-strategise to plan

From allAfrica

14 Aug

Tanzania: Commonwealth Boss Extols Isles Development Plans

Zanzibar

THE Commonwealth has pledged its continued economic support to Zanzibar whilst commending the Isles government for good implementation of its development programmes.

The remarks were made by Commonwealth Secretary General, Ms Patricia Baroness Scotland when she paid a courtesy call on President Ali Mohamed Shein at the State House in Unguja yesterday.

Ms Scotland lauded the government of Zanzibar for the measures it has been taking to promote the Isles economy and for maintaining peace and tranquility, and vowed to support those efforts.

She thus assured President Shein of her organisation’s support to Zanzibar’s and Tanzania’s development initiatives, adding that the Commonwealth was focused on partnering with all its member countries in improving the lives of the people.

The Commonwealth Secretary General briefed Dr Shein about the works being implemented by Commonwealth in all its 52 member countries, including increasing opportunities in the key sectors of business and economy, women’s and youth empowerment, education and environment protection among others.

She mentioned the development of infrastructure and energy sectors as among areas of priority that will help activate economic growth.

Ms Scotland also expressed her delight on the positive trend of economic growth among Commonwealth member states across Africa and Asia, saying their economy was growing at a rate ranging between 5 and 8 per cent.

Dr Shein was grateful to the Commonwealth boss and welcomed the partnership and support, which he said would help his government to achieve its development targets.

The president said the government is implementing a number of development projects and is taking on board women and young people in its development endeavours and is also working hard to protect the rights of children and elders.

Dr Shein also talked of his government’s achievement in promoting good governance and democracy on the Islands.

From allAfrica

14 Aug

Nigeria Set to Benefit From Deep Sea Mining

seabed

The Director General of the Nigerian Maritime Administration and Safety Agency, Dakuku Peterside,  has stated that Nigeria is set to benefit from the deep sea mining through effective harnessing of the opportunities by working with the International Seabed Authority.

The NIMASA DG who made this known at the opening ceremony of the 23rd Assembly of the International Seabed Authority (ISBA) held in Kingston, Jamaica said that irrespective of the numerous resources in Nigeria, there was the need to work more closely with the ISBA in the area of seabed resources exploration.

Peterside, who led the Nigerian Delegation to the event commended ISBA on its role in the optimal utilisation of seabed resources among maritime stakeholders and solicited assistance in the area of capacity building to survey deep sea and establish data base of mineral resources available for the benefit of all mankind.

He stated further that the federal government is currently developing policies that will aid the harnessing of seabed resources and will be working closely with the ISBA.

According to Peterside, “The Nigerian Federal Ministry of Transportation is developing a country blue economy policy and strategy which will incorporate the sustainable development of the country’s deep seabed resources”.

Furthermore, he said at the moment the Nigerian Navy Hydrographic office has been undertaking hydrographic survey and charting of our maritime area, and adding that in the same vein NIMASA is working with Nigerian Navy to effectively enforce the United Nations Convention on the law of the sea and other relevant international maritime instruments to which we are a party around our continental shelf.

He also noted that, while seeking exploitation of the mineral resources within the Seabed off our national maritime jurisdiction, marine environment preservation and protection will continue to be given top priority.

The NIMASA boss used the opportunity to congratulate Mr. Michael Lodge of the United Kingdom on his appointment as Secretary General of ISBA Council and Eugenio Joao Muianga of Mozambique on his election as President of the Authority’s 23rd session.

He said that Africa is proud of the feat of Muianga and pledged that Nigeria is ready to cooperate with and support the work of the Authority while looking forward to benefiting from available opportunities.

The International Seabed Authority is an autonomous international organisation established under the 1982 United Nations Convention on the Law of the Sea and the 1994 Agreement relating to the Implementation of Part XI of the United Nations Convention on the Law of the Sea.

Source from allAfrica

08 Aug

Nigeria: Govt Announces 27 Industries to Enjoy Tax Break Under Pioneer Status (Full List)

The federal Nigerian government on Monday released the full list of the 27 key industries and products who will enjoy a tax break

The federal Nigerian government on Monday released the full list of the 27 key industries and products who will enjoy a tax break, being included in the revised list of ‘pioneer status’ incentives for prospective investors.

At the end of the meeting of the Executive Council of the Federation, FEC, last week, the Minister of Industry, Trade and Investment, Okechukwu Enelamah, disclosed the approval given to the 27 industries.

Mr. Enelamah did not, however, list the 27 industries.

The Minister of Information and Culture, Lai Mohammed, later confirmed that the creative industry was among the 27.

Earlier, the trade and investment ministry announced the lifting of the administrative suspension on processing pioneer status incentives, PSI, applications for prospective investors in the country.

Some of the benefits of the pioneer status include tax relief, mainly for corporate income tax.

Here is the full list of the 27 industries to enjoy the pioneer status.

Mining and processing of coal;

Processing and preservation of meat/poultry and production of meat/poultry products;

Manufacture of starches and starch products;

Processing of cocoa;

Manufacture of animal feeds;

Tanning and dressing of Leather;

Manufacture of leather footwear, luggage and handbags;

Manufacture of household and personal hygiene paper products;

Manufacture of paints, vanishes and printing ink;

Manufacture of plastic products (builders’ plastic ware) and moulds;

Manufacture of batteries and accumulators;

Manufacture of steam generators;

Manufacture of railway locomotives, wagons and rolling stock;

Manufacture of metal-forming machinery and machine tools;

Manufacture of machinery for metallurgy;

Manufacture of machinery for food and beverage processing;

Manufacture of machinery for textile, apparel and leather production;

Manufacture of machinery for paper and paperboard production;

Manufacture of plastics and rubber machinery;

Waste treatment, disposal and material recovery;

E-commerce services;

Software development and publishing;

Motion picture, video and television programme production, distribution, exhibition and photography;

Music production, publishing and distribution;

Real estate investment vehicles under the Investments and Securities Act;

Mortgage backed securities under the Investments and Securities Act; and

Business process outsourcing

Via AllAfrica 

17 Nov

Facebook outlines Plans to grow its African Ecosystem at AfricaCom 2016

Facebook (www.Facebook.com) had a strong presence at AfricaCom 2016 in Cape Town, in line with its commitment to fostering a strong relationship with its connectivity partners and application developers across Africa.

In addition to hosting its first-ever African FbStart workshop for developers, Facebook also shared how it is empowering local retailers and entrepreneurs with Internet.org’s Express Wifi programme.

Chris Daniels, VP of Internet.org at Facebook, said: “Our mission is to give people the power to share and to make the world more open and connected. Only half of the planet is on the internet – our aim with Internet.org is to connect the other half through initiatives such as Free Basics, solar-powered airplanes, satellites, and our exciting new programme, Express Wifi. According to the ITU, internet Penetration in Africa is now at 28%, but there is so much more do be done.”

Express Wifi empowering local entrepreneurs

Express Wifi by Facebook empowers local entrepreneurs to provide quality internet access to their communities and make a steady income. Working with local internet service providers or mobile operators, they’re able to use software provided by Facebook to connect their communities.

The programme is currently live at 150 locations in five countries across two continents.

In Africa, Facebook already has partners in Tanzania, Nigeria, and South Africa, with more deployments planned soon, including Ghana.

“This is a sustainable approach to bringing connectivity to underserved communities in countries across Africa – it is a business model that will grow itself because it empowers entrepreneurs to serve their communities,” says Daniels.

Express Wifi empowering local entrepreneurs

Express Wifi by Facebook empowers local entrepreneurs to provide quality internet access to their communities and make a steady income. Working with local internet service providers or mobile operators, they’re able to use software provided by Facebook to connect their communities.

The programme is currently live at 150 locations in five countries across two continents.

In Africa, Facebook already has partners in Tanzania, Nigeria, and South Africa, with more deployments planned soon, including Ghana.

“This is a sustainable approach to bringing connectivity to underserved communities in countries across Africa – it is a business model that will grow itself because it empowers entrepreneurs to serve their communities,” says Daniels.

This programme has also improved the skills of local entrepreneurs who work with Facebook and its ISP partners to build, install and maintain local wifi networks.

“We’re encouraged by the progress we’ve made – but also inspired by what we’ve seen in the community,” says Daniels. “It’s exciting to see local economies transformed by connectivity as people use the internet to enhance existing businesses or create new ones.”

First FbStart Meetup in Africa

More than 150 developers and entrepreneurs gathered for Facebook’s first FbStart event in Africa on 15 November. During this half-day event, attendees met the Facebook team, learned about Facebook platform tools for developers, and saw how Facebook works with mobile app start-ups through the FbStart programme.

“It would not be possible for us to accomplish our mission of making the world more open and connected without the help of developers and other partners in our community,” says Emeka Afigbo, Strategic Products Partnerships Manager, Facebook. “We were delighted by the excellent turnout for the workshop and excited by the possibilities of the great ideas we saw from the delegates at the FbStart event.”

Population Density Map data

Also this week, Facebook announced that it is now releasing its Population Density Map data(http://APO.af/HChwir) to the public.

Government policymakers, academics and local organisations will all benefit from access to this rich dataset, with potential applications such as socio-economic research, infrastructure planning, and risk assessment for natural disasters.

To start, Facebook has shared data sets for Malawi, South Africa, Ghana, Haiti, and Sri Lanka, and they can be found on the website of CIESIN at Columbia University. More countries will be added over the coming months.

Distributed by APO on behalf of Facebook.

10 Oct

The Development Bank of Southern Africa (DBSA) announces Financing of 21 Renewable Energy Projects

The Development Bank of Southern Africa (DBSA) has financed 21 renewable energy projects since the launch of the Renewable Energy Independent Power Producer Procurement Programme (REIPP). This was revealed today at the annual SA Gas Options conference in Cape Town and follows the announcement of South Africa’s Gas to Power Project Information Memorandum (PIM). Ms Lucy Chege, General Manager for Energy Financing at the DBSA, said “The DBSA’s achievements in the renewable energy space confirms our role as an instrumental partner in developing integrated solutions for and on behalf of the Department of Energy’s IPP office and  National Treasury.”

This announcement comes two weeks after the release of the DBSA’s financial results which revealed that the bank had delivered a net profit of R2.6bn and sustainable earnings of R1.4bn in the 2015/2016 financial year. In this 12 month period ending March 2016, the DBSA delivered R28bn across the total infrastructure value chain, with development assets now standing at R77bn and total assets at R82bn.

To date, the DBSA has contributed to 2512 megawatts of power being installed on the national grid through the funding of 21 projects across South Africa. This has significantly addressed the energy crisis challenges across South Africa and the region.  Approximately R14.9bn of commitments have been made by the DBSA to support government programmes in the energy space. Some of the successes include the construction of two IPP Peaking power plants in South Africa – Avon 670MW and Dedisa 335 MW.

The 21 projects funded by the DBSA with a total capacity of 2512MW are part of SA’s REIPP Programme and the Department of Energy’s s Peakers IPP Programme. All projects are currently operational and delivery power to the national grid. These projects include 5 Commercial Solar Panels, 9 Solar PV’s and 5 wind projects.

Approximately R2, 167 billion has been provided to enable the participation by BBBEEE players and local community trusts in various energy projects. Funding has been provided in the form of senior debt, mezzanine debt and BEE funding.

The bank has also financed numerous gas fired plants and infrastructure throughout the continent as part of regional integration efforts to address the power crisis. Regional projects include Cenpower, Ghana powership and funded the Bulk Oil Storage Terminal of Ghana.

“The energy portfolio accounts for the banks largest exposure and this signals our commitment to working with all partners and promoting the DBSA’s regional integration and infrastructure programme, says Ms. Chege.

Distributed by APO on behalf of The Development Bank of Southern Africa (DBSA).