Connect with us

Business

African Energy Week (AEW) 2024 Panel Deliberates Path Towards Private Power Provision in Africa

Published

on

African Energy Week

South Africa sets the benchmark on how to successfully provide independent generation capacity through its renewable IPP model which can be replicated throughout Africa

CAPE TOWN, South Africa, November 7, 2024/APO Group/ — 

Private power and Independent Power Producer (IPP) investments are pivotal for Africa’s energy future if it is to improve energy access and end energy poverty on the continent. The procurement of new, often renewable sources of energy, is a way for countries to improve energy supply but also meet transition goals. 

During a panel discussion titled ‘Maintaining the Momentum for Private Power Provision’ that formed part of African Energy Week (AEW): Invest in African Energies 2024 ‘Powering Africa Summit’ South Africa’s IPP procurement program was highlighted as a benchmark on how to successfully develop private, independent power generation capacity in Africa, which is challenged by a lack of generation capacity, aging power plants and poorly run state-owned utilities and a lack of affordable capital. 

Bernard Magoro, Head of South Africa’s Independent Power Producers Office said that although the country has overcome the challenge of loadshedding, it needs to decommission 15-20 GW of coal-fired power by 2035, half of which will be replaced by renewables which requires between four and five times the baseload capacity that you are replacing. 

The IPP program, which has been running for 14 years, has delivered over 8 GW of capacity, 7.2 GW of renewable energy and 1 GW of open cycle gas turbine capacity, Magoro pointed out. This equates to about 10% of South Africa’s energy from IPPs on an annual basis, he added. 

Between now and 2032 we need to build 14,000 km of transmission lines

The enabling environment that Magoro referred to as “the IPP energy ecosystem” that was created in South Africa to support IPP integration is what has supported the success of the program, the learnings of which he said was being shared with the rest of the African continent. 

Panel moderator, Hasnayn Ebrahim, Managing Director of management consultancy Africa International Advisors noted the important aspect of cross-border collaboration, knowledge sharing and capacity support as a potential enabler to advance private power provision in Africa, a sentiment echoed by Mirlan Aldayarov, Infrastructure Program Leader at the World Bank who said the South African Power Pool (SAPP) exists as a good mechanism that can help to leapfrog some of the IPP development challenges in Africa. 

This idea was supported by Simphiwe Jantjies, Head of East, Central and West Africa at development finance institute the Development Bank of Southern Africa who said the existence of regional power pools, in addition to liberalizing the energy market can play an important role in extending the role of IPPS in providing power. 

“Development finance institutions can…play a meaningful role in the entire project development value chain…pulling the entire financing structure of a project together and ensuring it is bankable,” Jantjies said. 

Aldayarov highlighted the pace of reforms to support IPPs in South Africa as “phenomenal” noting that the Bank is involved in long term energy planning, policy and regulatory reforms, energy offtake and supporting the development of a pipeline of bankable projects to create an enabling environment going forward. 

In trying to maintain the momentum of the IPP program in South Africa, where there is over 100 GW worth of energy capcity at different readiness stages waiting to be developed, the country is faced with needing to expand the energy grid. “We have run out of grid capacity,” he said. 

“Between now and 2032 we need to build 14,000 km of transmission lines,” which Eskom cannot do alone, Mogoro said, noting that the private sector, like the role it is playing in the IPP space, would need to assist in expanding the strained transmission network. 

Distributed by APO Group on behalf of African Energy Chamber.

Business

Lekki Port, Lekki Freeport Terminal, Lagos Free Zone Launch COSCO Shipping, Ocean Network Express (ONE) & ZIM Lines Services

Published

on

COSCO Shipping

The launch of the services was signaled by the arrival of the E A Centaurus at Lekki Deep Sea Port on Friday, November 8, 2024

LAGOS, Nigeria, November 11, 2024/APO Group/ — 

In what could be described as a major boost to the Nigerian maritime sector and international trade, the management of Lekki Port LFTZ Enterprise Limited (LPLEL), Lekki Freeport Terminal, and the Lagos Free Zone (https://LagosFreeZone.com) have launched the COSCO, ONE (Ocean Network Express), and ZIM alliance services at Lekki Deep Sea Port.

The launch of the services was signaled by the arrival of the E A Centaurus at Lekki Deep Sea Port on Friday, November 8, 2024. The E A Centaurus, with an overall length of 277m and a container handling capacity of 7,000 TEU, is also the largest COSCO vessel to call Nigeria. It docked at the port at about 10:30 a.m.

The Chief Executive Officer of Lekki Freeport Terminal, Christophe Cassang, explained that the launch of the service marks a crucial milestone in the terminal’s development and capacity expansion. He added that the launch of the service demonstrates the company’s commitment to becoming a leading maritime hub in West Africa.

We are realizing our vision of driving significant cargo volumes and further positioning Lekki Port to enhance the Nigerian maritime sector and improve business efficiency

“Through the strategic partnership with global shipping leaders such as COSCO, ONE, and ZIM, we are strengthening our position on the international stage and opening new opportunities for trade and industry in Nigeria and the region. Lekki Freeport Terminal is run by a well-trained workforce, passionate about meeting challenges of the future, and is equipped with the most advanced technology and state-of-the-art infrastructure designed to meet the growing needs of the shipping lines and of our customers,” said Cassang.

In his remarks during the ceremony, the Managing Director of Lekki Port, Du Ruogang, described the launch of the new shipping line services as a true testament to the company’s commitment to Nigeria’s maritime future. Ruogang noted that the berthing of the E A Centaurus marked the first of bi-weekly calls to Lekki Deep Sea Port by COSCO, ONE, and ZIM shipping lines. He described the launch of the COSCO, ONE, and ZIM shipping lines as a symbol of the company’s unwavering dedication to positioning Lekki Port as a transformative force in the Nigerian maritime Industry.

“After 18 months of commencement of commercial operations and continued efforts, we are proud to welcome COSCO, ONE, and ZIM shipping lines to Lekki Port. With the bi-weekly calls of the consortium, we are realizing our vision of driving significant cargo volumes and further positioning Lekki Port to enhance the Nigerian maritime sector and improve business efficiency across the country. The achievement is not the end but rather the beginning,” he said.

In her statement, the Chief Executive Officer of Lagos Free Zone, Adesuwa Ladoja, described the launch of COSCO, ONE, and ZIM shipping lines services at Lekki Port as a momentous occasion and significant achievement not only for Lekki Port and Lekki Freeport Terminal but also for Lagos Free Zone as it is bound to attract more foreign direct investment (FDI) to the zone.

“From one shipping line, we now have four shipping lines calling at the Lekki Deep Sea Port; it is significant because we now have more options that allow more customers access to the state-of-the-art facilities at the Lekki Port. It also allows the growth of enterprises in the Lagos Free Zone and, in fact, the entire Lekki economic axis. The companies can bring their raw materials through any of the four shipping lines and move them straight into the factories for production. They can also export finished goods to other parts of Africa and, indeed, the world. This is the economic rejuvenation we are all looking for, and Lekki Port and Lagos Free Zone are happy to be doing our part”, she said.

In their reaction, the COSCO, ONE, and ZIM shipping line representatives expressed their excitement about partnering with Lekki Port and Lekki Freeport Terminal. They expressed satisfaction with the world-class infrastructure and facilities available at the port. The companies were represented by the Deputy Managing Director of COSCO Shipping Lines Nigeria Limited, Rex Wang, Director, Ocean Network Express (Nigeria) Limited, Stefan Pedersen, and Managing Director, Lansal, Todd Rives.

Distributed by APO Group on behalf of Lagos Free Zone (LFZ).

Continue Reading

Business

Afreximbank approves US$200 million Facility to support BUA Industries Limited (BIL) expansion plans

Published

on

Afreximbank

The first tranche of $150 million was disbursed on October 16, 2024

CAIRO, Egypt, November 11, 2024/APO Group/ — 

African Export-Import Bank (Afreximbank) (www.Afreximbank.com) has approved a US$200 million Corporate Finance Facility in favour of BUA Industries Limited (BIL) to support its expansion plans.

With Afreximbank’s support, BUA can increase investments to strengthen industrial capacity and meet regional demand

BIL is a Nigerian conglomerate with diversified business interest spanning across, sugar and cement manufacturing, flour milling, oil milling, port logistics, real estate development, oil and gas, and shipping. The first tranche of $150 million was disbursed on October 16, 2024.

Commenting on the transaction, Mrs. Kanayo Awani, Executive Vice President, Intra Africa Trade and Export Development, Afreximbank, said that the facility will provide critical financial support to a leading Nigerian conglomerate as it pursues its expansion plans, thereby boosting its industrial base and Nigeria’s export manufacturing capacity.

“We are delighted at this partnership which promises to deliver significant impact through job creation, import substitution and export diversification – thereby boosting Nigeria’s Gross Domestic Product (GDP).”

On his part, Alhaji Abdul Samad Rabiu, CFR, CON, Chairman of BUA Industries Limited, said that the $200 million corporate finance facility marks a crucial step in BUA’s commitment to industrializing Nigeria’s manufacturing, infrastructure and energy sector for local use and export. “With Afreximbank’s support, BUA can increase investments to strengthen industrial capacity and meet regional demand. Our goal is sustainable growth that boosts Nigeria’s self-sufficiency and Africa’s global trade presence, creating jobs and building economic resilience,” he said.

Distributed by APO Group on behalf of Afreximbank.

Continue Reading

Business

Ecobank Partners with Nium to Unlock Real-Time Cross-Border Payments Across 35 African Markets

Published

on

Ecobank

Nium announces its partnership with Ecobank, a pan-African financial solutions leader, bringing real-time cross-border payments to 35 markets on the continent

SINGAPORE, Singapore, November 11, 2024/APO Group/ — 

Nium (https://apo-opa.co/3Cl0CMy), the leading global infrastructure for real-time cross-border payments, announced a partnership with Ecobank Transnational Incorporated. (www.Ecobank.com), the leading independent pan-African financial services group, to enable seamless cross-border payments across 35 African markets for more than 32 million customers. This partnership is set to revolutionise the region’s payments landscape by enabling faster, more efficient international payments for businesses and consumers alike.

Nium’s real-time payments infrastructure will be integrated into Ecobank’s existing banking operations, empowering Ecobank to enhance its services for small and medium-sized enterprises (SMEs). Ecobank will connect its existing Swift workflows to Nium, gaining access to real-time transfers, updates, clearing, settlement, and payment tracking, without the need for complex API integrations. This will significantly reduce waiting times for cross-border payments, enabling businesses to make faster payments to over 220 markets, including over 100 countries with real-time capabilities.

Partnering with Nium allows us to enhance our service offerings and provide our customers with faster, more efficient cross-border payment solutions

Ecobank is a critical financial partner in sub-Saharan Africa. Through this partnership, Ecobank’s customers across the region will benefit from an enhanced payments experience that allows faster and more efficient cross-border transactions, unlocking new opportunities for SMEs to connect with global markets.

Anupam Pahuja, General Manager and Executive Vice President for APAC, Middle East and Africa at Nium, said, “We are thrilled to partner with Ecobank and introduce Nium’s cutting-edge real-time payment capabilities to Africa. This collaboration represents an important step forward in expanding our global payments network, and we are proud to support Ecobank in delivering faster, more efficient payments for its customers across the region.”

Partnering with Nium allows us to enhance our service offerings and provide our customers with faster, more efficient cross-border payment solutions. By leveraging our unique API-based payment platform, this collaboration is a significant step towards advancing financial inclusion and connectivity across Africa and enabling businesses to thrive in a global marketplace,” said Jeremy Awori, CEO of Ecobank Group.

Ecobank can exchange its existing SwiftMT & ISO20022 messages with Nium to initiate payments on the real-time platform, accelerating business growth and improving the speed and accuracy of cross-border payments for African businesses.

The partnership also aligns with Nium’s broader strategy to enhance global financial inclusion, enabling access to real-time payments in regions where traditional banking systems may be slow or unreliable. Through this collaboration, Ecobank is now better equipped to provide an unmatched cross-border payment experience for its customers, while Nium continues its mission to democratize access to the world’s largest real-time payments network.

Distributed by APO Group on behalf of Ecobank Transnational Incorporated.

Continue Reading

Trending