Connect with us

Business

South Africa needs more wind power now to tackle its energy crisis (By Janek Winand)

Published

2 years ago

on

wind power

Investment in wind power is urgent and of strategic importance for the country’s sustainable present and future

JOHANNESBURG, South Africa, March 7, 2023/APO Group/ — 

By Janek Winand, Managing Director for South Africa, Siemens Gamesa (https://www.SiemensGamesa.com)

“…Persistent load shedding is impeding our recovery… We know that without a reliable supply of electricity, businesses cannot grow, assembly lines cannot run, crops cannot be irrigated, and basic services are interrupted”, said H.E. President Cyril Ramaphosa in his State of the Nation Address recently. “Without a reliable supply of electricity our efforts to grow an inclusive economy that creates jobs and reduces poverty will not succeed”, he added.

There is no doubt that the South African power generation crisis is a tremendous challenge for the country and is endangering the country’s economy as a whole. As President Ramaphosa expressed in his speech, the trickle-down consequences of a delayed response in addressing these challenges will be dire for businesses, jobs and livelihoods.

As the second biggest economy in Sub-Saharan Africa, South Africa has been restricted for years in its development by constant power cuts, lasting hours at a time, undermining people’s ability to develop their lives, businesses to grow and services to function. However, the worsening of this situation over the past 12 months has made the situation unsustainable.

This is a particularly challenging reality to accept taking into consideration how rich South Africa is in energy resources, particularly renewable clean resources, that can help the country expand its power generation capacity and, in doing so, supporting its move towards a growing and greener economy.

Wind currently represents the best response to address the blackouts that are crippling the nation and mitigate the risk of a grid collapse. With the right incentives and policies, renewable energy sources, particularly wind power, could rapidly help to resolve some of the country’s most challenging energy problems. By investing in dispatchable power, grid expansion, grid stabilizers, and energy storage, South Africa will create a resilient foundation for clean energy expansion. These efforts will contribute to faster development and integration of new power generation plants into the national grid while addressing issues with the integration of intermittent power sources like solar and wind, while contributing to a reduction of the country’s dependence on coal-fired power generation, representing today still more than 80%.

Wind currently represents the best response to address the blackouts that are crippling the nation and mitigate the risk of a grid collapse

South Africa is endowed with tremendous potential for wind power generation, which is now the most economically competitive form of generation in the country, alongside photovoltaic solar power. Furthermore, it is the fastest to deploy. A wind project today, takes, from contract signed to production, just 24 months, compared to several years or even decades that nuclear or fossil-fuel power plants take to plan and develop, and at a fraction of the cost, and with much more flexibility. This technology is also consistently becoming more competitive.

We, at Siemens Gamesa, have seen this evolution happening in real time. In recent years we have built 855 MW of onshore wind power in South Africa installing wind turbines with a maximum power output of 2,3 MW per unit. Today, we already offer turbines in-country with an output of 6,6 MW per unit. To put it into perspective, to produce 150 MW of power, a wind power plant now requires only 23 turbines, in contrast to 61 just a few years ago. The levelized cost of energy (LCoE) at the end of the day is being decreased dramatically.

The future of the energy mix will inevitably be one of combined sources of power, and in a just transition scenario, we must consider all options available to ensure access to power and economic development for all, with sustainability as a central strategic objective. As solar produces its maximum output throughout the day and wind more energy in the mornings and the evenings, both sources are complementary by nature, to have a seamless flow of power into the grid.

Also, to be noted, is that while coal and nuclear power generation might still be of strategic importance to South Africa, they use a very substantial amount of water to operate, which is a relevant concern in a country that battles regularly with water shortages.

In our experience, wind power projects in South Africa have had a tremendously positive impact not only in generating low-cost electricity to the grid, but also directly and indirectly on the communities around the projects themselves, many of them quite remote. These projects require a number of services during development, many sourced from the local communities, thereby stimulating the local economy, with a trickle-down effect. The growth of the industry has also stimulated interest in Science, Technology, Engineering, and Mathematics (STEM) fields by young professionals eager to work with and within a transition to a greener energy landscape. There are multiple opportunities for synergies and collaborations with the local communities in these developments, which we promote to a great extent in the development of our windfarms.

In terms of funding, the willingness to invest is already there. South African banks have sufficient funds to invest in renewable energies and are also very motivated to do so. All that is needed is the political will to move forward. The announcement of Bid Window 7 is very welcome news, as well as the private Power Purchase Agreement (PPA) market picking up after the licensing cap has been lifted, but more needs to be done. Auctions need to happen more regularly and with an established short-, mid- and long-term pipeline that can provide companies with predictability and opportunities to plan ahead. The timeframes for approval processes and evaluations need to be shortened and simplified in order to accelerate development of new capacity.

In sum, it is imperative that we implement all the possible means to tackle the energy crisis head on as well as, in the words of President Ramaphosa, “undertake our just transition in a way that opens up the possibility of new investments, new industrialisation and that, above all, creates new jobs”.

The answer is right there, blowing in the wind.

Distributed by APO Group on behalf of Siemens Gamesa.

Related Topics:
Continue Reading
Advertisement

Business

African Trade and Investment Development Insurance (ATIDI) Hosts Deep Dive Webinar on Development Insurance and Shapes the Future of Risk Mitigation in Africa

Published

59 minutes ago

on

February 5, 2025

By

ATIDI

The pan-African development insurer is set to host its 2025 Annual General Meeting and Investor Roundtable in Luanda, Angola, from 18 to 21 June

NAIROBI, Kenya, February 4, 2025/APO Group/ — 

In an effort to promote the growing need for effective risk management in Africa, ATIDI (www.ATIDI.Africa) hosted a webinar focused on the role of development insurance. The session brought together media stakeholders from across the continent – to understand how innovative insurance solutions are driving sustainable development, mitigating risks and fostering economic growth. With a special emphasis on the African market, the session provided a deep dive into strategies that are transforming the landscape of development insurance.

Download presentation: https://apo-opa.co/3ColzGY

Development insurance plays a pivotal role in fostering economic growth by providing investment, trade and political risk-mitigation covers designed to attract foreign direct investment (FDI) into development projects. Unlike traditional insurance, development insurance is a specialized field focused on creating a secure environment for investors by addressing unique risks.

ATIDI exemplifies this approach by offering tailored solutions that mitigate risks and provide investors with an added layer of security and confidence. This assurance enables them to engage in critical development projects, knowing their capital and interests are safeguarded against unforeseen challenges such as political instability, currency inconvertibility and default risks. Through its innovative and specialized products, ATIDI is not only facilitating FDI but also driving sustainable development across Africa, transforming perceived risks into opportunities for economic advancement.

ATIDI, legally known as the African Trade Insurance Agency, was founded in 2001 by African States and with technical and financial backing from COMESA and the World Bank, to cover trade and investment risks of companies doing business in Africa. At that time, the continent attracted a bleak USD47 billion dollars of FDI, due in part to perceived or actual risk for interested investors. Though this figure has improved, Africa’s financing gap remains abysmal, with USD200 billion in additional investment needed to achieve the SDGs by 2030 [1].

ATIDI has grown to 24 Member States (https://apo-opa.co/3CKjViM) and 13 institutional shareholders. The organization aspires to eventually have all African countries as members. In pursuit of this goal, ATIDI has established and strengthened strategic partnerships with leading development and financing institutions, including the African Union, the African Development Bank, the World Bank Group, the European Investment Bank, KfW and Norad. ATIDI has earned an A2 rating with a stable outlook from Moody’s and an A rating with a stable outlook from S&P, reflecting its financial strength and credibility.

ATIDI has demonstrated resilience amid challenging market conditions, achieving profit growth while strategically managing its risk and exposure. The organization continues to support trade and investment across Africa with a portfolio of over USD85 billion since inception. ATIDI is implementing an ambitious 2023-2027 corporate strategy, targeting capital of USD1 billion and membership increase by 25%, while optimizing it processes and systems.

By providing tailored risk solutions, we empower African economies, improve livelihoods, and contribute to long-term development, all while fostering greater trade and investment

ATIDI has supported several flagship projects across Africa, showcasing its commitment to sustainable economic growth and financial stability. The 20 MW Ituka West Nile Uganda Ltd solar project (https://apo-opa.co/42Ig94m) promotes renewable energy access. In Benin and Togo, ATIDI supported the refinancing and re-profiling of existing loans (https://apo-opa.co/4hzGBkK), underscoring ATIDI’s commitment to supporting financial stability and economic reforms. Furthermore, ATIDI has been supporting key infrastructure transactions, including road and irrigation projects in Côte d’Ivoire, Tanzania, and Senegal among others. In all these countries, ATIDI’s comprehensive credit risk insurance enabled access to longer debt tenures, and a reduced all-in interest rate. In collaboration with MDBs, ATIDI has provided cover for blended finance transactions such as in the BITA Water Project in Angola (World Bank), improving access to clean water and sanitation and an SDG loan in Benin (AfDB). Furthermore, ATIDI’s Regional Liquidity Support Facility (RLSF) (https://apo-opa.co/4hKkgRo) enhances bankability by providing risk mitigation for development initiatives in renewable energy.

The pan-African development insurer is set to host its 2025 Annual General Meeting and Investor Roundtable in Luanda, Angola, from 18 to 21 June.

Quote from Manuel Moses, CEO, ATIDI

“ATIDI is at the center of the solution to Africa’s development agenda. Our unique risk-mitigating solutions are essential to enable transformational projects benefiting African countries and their citizens. We are well on our journey to one day count each African country as a Member State and fully realize the noble vision of the African Continental Free Trade Area (AfCFTA). As we work towards this goal, we strive to preserve the support of our Member States in upholding our Preferred Creditor Status, to leverage collaboration with other actors in our industry and to strengthen our bond with our strategic partners”

Quote from Benjamin Mugisha, Chief Underwriting Officer, ATIDI

“Business trends are rapidly evolving, and at ATIDI, we are continuously adapting our product line-up to meet the changing needs of our clients. One key focus has been the development of innovative solutions tailored specifically for SMEs. These businesses play a crucial role in driving economic growth, particularly in Africa, and we are committed to providing them with risk management tools that they need to thrive. By providing tailored risk solutions, we empower African economies, improve livelihoods, and contribute to long-term development, all while fostering greater trade and investment opportunities across the continent.”

Quote from Dr. Anthony Ehimare, Chief Risk Officer, ATIDI

Investing in Africa comes with the risks, among which figure debt distress, political volatility, lingering insecurity or again persisting gaps in governance. But recent global crises demonstrate that volatility and uncertainty may be the new norm in international business. ATIDI’s track record has proven that our unique market insight, our solid partnerships, our risk assessment and adapted mitigation mechanisms provide investors with the comfort level they need to further engage in Africa. We remain committed to continue providing this superior quality to our partners and clients.

[1]: UNCTAD Global Investment Trends Monitor, No. 46 (https://apo-opa.co/3CCKNkQ)

Distributed by APO Group on behalf of African Trade and Investment Development Insurance (ATIDI).

Continue Reading

Business

The International Islamic Trade Finance Corporation (ITFC) Signs $1.5 Billion Annual Program with Egypt

Published

1 hour ago

on

February 5, 2025

By

ITFC

The initiative is designed to boost Egypt’s economic development, support exporters, and create job opportunities for youth and women

CAIRO, Egypt, February 4, 2025/APO Group/ — 

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), a member of the Islamic Development Bank (IsDB) Group, today announced the signing of its 2025 annual work program with the Arab Republic of Egypt, valued at $1.5 billion.

This agreement is part of a five-year framework, totaling $6 billion, aimed at enhancing Egypt’s growth across critical sectors including energy, food security, and small and medium-sized enterprises (SMEs). The initiative is designed to boost Egypt’s economic development, support exporters, and create job opportunities for youth and women. This agreement, worth $1.5 billion, is part of the broader framework agreement between the two parties, valued at $6 billion over five years. The program is designed to support key sectors of the Egyptian economy, including energy, food security, and the empowerment of small and medium enterprises (SMEs), in line with Egypt’s goals for sustainable economic development and growth.

The signing ceremony, held in Cairo, was attended by key officials including His Excellency Lieutenant General Engineer Kamel Al-Wazir, Deputy Prime Minister for Industrial Affairs and Minister of Industry and Transport; Her Excellency Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Governor of Egypt at the Islamic Development Bank; and His Excellency Dr. Sherif Farouk, Minister of Supply and Internal Trade. The agreement was signed by Eng. Hani Salem Sonbol, CEO of ITFC and Acting CEO of ICD; Mr. Hossam El-Garrahi, Vice Chairman of the General Authority for Supply Commodities; and Mrs. Amal Tantawy, Executive Vice President for Financial and Economic Affairs at the Egyptian General Petroleum Corporation. ITFC’s 2025 program for Egypt includes trade finance operations to support the energy and food security sectors, as well as SMEs, with a focus on projects benefiting the Egyptian General Petroleum Corporation and the General Authority for Supply Commodities. The program also encompasses a wide range of initiatives to promote trade and business development, including the Arab African Trade Bridges (AATB) Program, the second phase of the Aid for Trade Initiative for Arab Countries (AfTIAS 2.0), and a comprehensive suite of programs designed to support Egyptian exporters and SMEs. Additionally, ITFC will continue its efforts to support women and youth through specific empowerment initiatives and technical training programs.

Since 2008, ITFC has committed over $18.7 billion to Egypt, financing key sectors such as energy, food security, and supporting SMEs and women entrepreneurs. This agreement underscores ITFC’s ongoing role as a key partner in Egypt’s economic development, leveraging its expertise in trade finance to empower vital sectors and foster inclusive growth.

We are excited to expand our support for SMEs, women, and youth, while continuing to foster Egypt’s export capabilities

Engineer Kamel El-Wazir, the Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, said: “Today, through this partnership, we reaffirm our commitment to developing these vital sectors, ensuring the improvement of transportation infrastructure, updating the industrial sector, and enhancing its competitiveness. ITFC has proven, over the years, its vital role in supporting member countries of the Organization of Islamic Cooperation (OIC) by offering innovative financial solutions and supporting developmental projects that contribute to stimulating economic growth and creating job opportunities.” He added: “The signing of today’s annual work program represents a strategic step that strengthens our partnership and opens new horizons for cooperation in infrastructure projects, manufacturing, and logistics services.”

Dr. Sherif Farouk, Minister of Supply and Internal Trade, said: “The allocation of $700 million from the ITFC to the General Authority for Supply Commodities, within the framework of the institution’s annual program for 2025, reflects the institution’s commitment to supporting government efforts aimed at achieving food security and fulfilling the state’s obligations towards its citizens.” He added: “The cooperation with the ITFC has not only been a financial commitment, but also a main pillar in the state’s efforts to secure its strategic needs of basic goods, enhance the Ministry of Supply and Internal Trade’s capacity to face emergency challenges, and ensure market stability. This confirms that this partnership represents a true foundation for supporting food security and ensuring sustainability in the supply of basic goods, which positively impacts the life of the Egyptian citizen.”

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Egypt’s Governor at the Islamic Development Bank, stated that the signing of the annual work program with ITFC represents a new step in the successful development partnership with the Islamic Development Bank (IsDB) Group in general, and the International Islamic Trade Finance Corporation (ITFC) in particular, which has contributed over 17 years to supporting the provision of strategic goods in the Egyptian market. She explained that the institution’s work program for 2025 aims to support food security and provide petroleum to the Egyptian General Petroleum Corporation in a way that enhances the availability of petroleum products and energy in the Egyptian market. This partnership also strengthens ongoing programs to encourage exporters and enable them to access foreign markets, as well as enhance efforts in training and developing small and medium-sized enterprises.

The International Islamic Trade Finance Corporation (ITFC) is a member of the Islamic Development Bank (IsDB) Group, dedicated to facilitating trade in its member countries through the provision of financing solutions and technical support. ITFC’s mission is to support sustainable economic development by empowering businesses, particularly SMEs, women, and youth, through trade finance and capacity-building initiatives.

Eng. Hani Salem Sonbol, CEO of ITFC, expressed his pride in the longstanding partnership with Egypt, stating: “ITFC is committed to working with Egypt to drive sustainable economic growth. We are excited to expand our support for SMEs, women, and youth, while continuing to foster Egypt’s export capabilities. In 2025, we will introduce new initiatives that aim to empower these vital groups, creating lasting impact for Egypt’s economy.”

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

Continue Reading

Business

The Bench rebrands Africa Hospitality Investment Forum (AHIF) as Future Hospitality Summit Africa (FHS Africa) under unified Future Hospitality Summit portfolio

Published

20 hours ago

on

February 4, 2025

By

At AHIF 2024, over $365 million in deals were signed, further solidifying the event’s role as a catalyst for investment across the region

DUBAI, United Arab Emirates, February 4, 2025/APO Group/ — 

The Bench (TheBench.com), a global leader in hospitality investment events, is rebranding the Africa Hospitality Investment Forum (AHIF) as Future Hospitality Summit Africa (FHS Africa). Doing so brings AHIF, Africa’s most influential tourism investment conference, under The Bench’s flagship Future Hospitality Summit, or ‘FHS’ brand, aligning it with FHS Saudi Arabia and the Dubai-based FHS World. This evolution is a response to a growing appetite for hospitality investment spreading across the whole Middle East and Africa (MEA) region.

For over a decade, AHIF has shaped Africa’s hospitality industry, bringing together global investors, government leaders, and hotel developers to facilitate high-value deals and meaningful discussions, ranging from investment opportunities to government policy and infrastructure developments. The event has catalysed billions of dollars in investment, strengthened regional partnerships, and provided a dedicated space for investors to unlock opportunities in Africa’s rapidly expanding hospitality sector.

The appetite for hospitality investment in Africa has never been stronger. The continent has a record-breaking pipeline of hotel developments, with over 300,000 new ‘keys’ projected by 2030. Cities like Nairobi, Casablanca, Cape Town, and Addis Ababa are leading this transformation, with Nairobi’s Average Daily Rate (ADR) increasing by 164% and Casablanca’s ADR rising by 141% compared to 2019.

Africa’s post-pandemic recovery has outpaced global expectations, with demand exceeding 2019 levels for nine consecutive months. International arrivals are projected to grow by 6-7% annually, reinforcing Africa’s position as an attractive destinatione for hospitality and tourism investment. At AHIF 2024, over $365 million in deals were signed, further solidifying the event’s role as a catalyst for investment across the region.

With Africa’s investment potential gaining global attention, FHS Africa will provide a focused, high-impact platform

Set to take place from 17-19 June 2025 in Cape Town, FHS Africa will provide a highly curated environment where investors, developers, and industry leaders will engage in forward-looking discussions tailored to the region’s opportunities and challenges. Key themes for 2025 will include:

  • Financing Models: Structuring investments to drive sustainable growth in Africa’s evolving markets.
  • Sustainable Investment & ESG: Making environmental and social governance a profitable venture rather than a cost.
  • Cross-Border Collaboration: Exploring policies and infrastructure advancements that can boost intra-African trade and tourism.
  • Branded Residences & Mixed-Use Developments: Understanding the rise of alternative asset classes in hospitality.
  • Technology & Innovation: The role of AI, blockchain, and digital transformation in African hospitality.

While FHS Africa remains, the leading event dedicated to Africa’s hospitality sector, its integration into the FHS ecosystem ensures that African stakeholders benefit from increased exposure at FHS World—the largest hospitality investment gathering in the region. This closer connection allows African markets to be positioned within a broader investment context, attracting more international capital, expertise, and strategic collaboration.

With its status as a global hub, Dubai serves as the operational headquarters for many international corporations, including The Bench, and plays a pivotal role in fostering investment into African markets. The city offers over 50 daily flights to major African destinations, enhancing accessibility for investors and business leaders alike. Dubai’s position as a financial and innovation hub makes it an ideal launchpad for deeper engagement with Africa’s growing tourism economy.

The FHS portfolio unites the hospitality sector’s most influential meetings under one roof. By consolidating its flagship events, The Bench enhances the industry’s ability to connect major stakeholders, drive investment, and foster cross-market collaboration. The presence of the world’s leading hotel groups, investment firms, and policymakers at all FHS events underscores its role as the premier hospitality investment network in the region.

“This transformation marks a pivotal moment for The Bench and the African hospitality sector,” said Matthew Weihs, Managing Director of The Bench. “With Africa’s investment potential gaining global attention, FHS Africa will provide a focused, high-impact platform, while FHS World ensures that African markets are showcased on the biggest investment stage. The synergy between these events will accelerate deal-making, policy engagement, and long-term industry growth.”

He concluded: “With the launch of FHS Africa in 2025, The Bench is reaffirming its commitment to shaping Africa’s hospitality future through knowledge-sharing, investment facilitation, and strategic partnerships. As the industry continues to evolve, this rebranding ensures that stakeholders receive a more structured, globally integrated experience—designed to unlock Africa’s full potential as the next major frontier for hospitality investment.”

Distributed by APO Group on behalf of The Bench.

Continue Reading

Trending