1. Hello Africa Tell Me How You’re Doing
27.5.2014

2. Africa Future Watch - Sense Making,
27.5.2014 klo 9-13 Minerva - sali
9.00 Tervetuloa: Pia Salokoski, Tekes
UM:n puheenvuoro : Antti Loikas, UM
Signaalien esittely ja ryhmätöiden ohjeistus:
Heta Pyhälahti ja Anna Erkkilä , Finpro
Ryhmätyöt
11.00 Työlounas
11.45 Ryhmätöiden purku
Kommenttipuheenvuoro : Antti Loikas, UM
12.55 Yhteenveto & tilaisuuden päättäminen:
Pia Salokoski, Tekes
2

3. Future watch- Afrikka 2014
720 signaalia
17 teemaa
8 mahdollisuutta (=ryhmätyöt)
Korkean potentiaalin markkinat- ohjelma
3

4. Signals / themes1. Urbanization and cities drive economic growth
2. Advances in construction technology
3. ‘Mobile’ Africa
4. Africa (collabo)rising
5. Emergence of financial markets and access to financial services
6. Financial service innovation
7. For Africa by Africa
8. Dietary changes
9. Wellbeing services – Fitness & Gym
10. Health care services
11. Digimedicine
12. Demographics
13. Increasing energy production through fossil fuels and nuclear
14. Renewable energy
15. Regional transmission of electricity
16. Creating jobs in Africa
17. Education empowering
4

5. Urbanization and cities drive
economic growth
– African Development bank economist
argue that urbanization is the catalyst
for economic growth as this will
create demand for good and services
by the rising middle-class
– Ideas and businesses are developed
in cities where information and
knowledge spreads and multiplies
– The demand created by the cities will
support domestic industries that will
drive future industrialization
– Urbanization is expected to offer the
much-needed catalyst for economic
growth
5

6. Urbanization and cities drive economic
growth
– New apartment blocks are coming with dizzying speed to match
the demand by middle-class city dwellers
Trendwatching.com
6

7. Urbanization and cities drive economic
growth
– East Africa’s biggest development, the Garden City, will be LEED
certified
Trendwatching.com
7

8. Advances in construction technology
– New technologies will require modern design and planning,
which is now beginning to grow domestically creating demand
for import of know-how
– Better building technologies will enable smarter design
– New structures will need to be furnished and fitted with the
latest design and technology creating local industry and
opportunity for international imports
– Dar Es Salaam and Nairobi ranked as the fastest growing cities in
Africa
– There is a growing demand for ‘Grade A’ commercial buildings
by companies and high demand for residential houses due to
the growing size of middle-class.
– East Africa has seen the emergence of new building
technologies, such as steel frame and pre-cast concrete, in order
to meet the demand for commercial, retail and residential space
in the new emerging cities
8

9. Advances in construction technology
– There is a growing demand for ‘Grade A’ commercial
buildings by companies and public institutions
– New technologies bring development of local
industry and opportunities for international high
tech import
– Looking for modern design, new know how
– Green branding
– High demand for residential houses due to the growing
size of middle-class. Mass markets for new appropriate
technologies
– East Africa has seen the emergence of new
building technologies, such as steel frame and pre-
cast concrete
– Implementations of solar water heaters in social
housing
– ”A Closed City in a City ” can provide offices,
residential areas, retail areas and services or only some
9

10. Advances in construction technology
Green building wave is already there:
– South Africa is celebrating its fiftieth Green Star SA certification
rated building . There are also 150 buildings registered for Green
Star ratings in the pipeline. South African is also a chairperson of the
World Green Building Council.
– New Innovation HUB in Botswana will build up the imago with
modern LEED certified multiuse building.
10

11. Advances in construction technology
– Pre- fabricated houses using galvanized steel and fiber
cement coming to Kenya by a Turkish company- Elsek
Construction.
11

12. Advances in construction technology
– Garden City- on going project, 50,000sqm retail mall,
office space, 500 homes and central park scheduled for
completion in June 2017
12

13. Advances in construction technology
– China’s Sichuan and China Railways sign a contract with
Nairobi county government to builds 55,000 apartments
in Nairobi from February 2015
13

14. Advances in construction technology
– Two 33-40 floor high rise commercial buildings are under
construction in Nairobi
14

15. ‘Mobile’ Africa
– The emerging middle classes,
who will travel more than ever,
and often via new methods;
and
– The continent’s wealthier –
and therefore more
demanding – consumers, who
will increasingly no longer feel
the need to constantly make
arduous journeys overseas
when able to obtain similar
experiences and to make and
spend money, all locally.
15

16. ‘Mobile’ Africa
– Emerging middle classes, who
will travel more than ever
– Growing of amount of cars on
the roads
– Solutions for public transport
– Smart cards for cities
– Connectivity and services on
the way
– Investments for moving more
goods on land and sea
16

17. ’Mobile’ Africa
– After a pilot program in Cape Town, in October 2013, FindMyWay launched
its public transport information service across major South African cities
including Johannesburg and Pretoria. The service enables public transport
passengers to access information on the FindMyWay mobile site or free
mobile app. Information on major transport providers such as arrival and
departure times as well as pricing and maps are available via FindMyWay.
17

18. ’Mobile’ Africa
– In April 2013, Google partnered with Kenya’s Equity Bank to launch
BebaPay; a range of pre-paid fare commuter cards for use on Citi
Hoppa buses across Nairobi. To pay, users swipe the card when
starting a journey and their fare is automatically deducted. The free
BebaPay cards can be topped up at Equity Bank Service Agents or
through the bank’s mobile banking platform, and passengers can also
sign up to receive free SMS receipts and balance confirmations.
18

19. ’Mobile’ Africa
– In August 2013, South Africa-based Mellowcabs began production of its electric
pedicabs, which will be used across Cape Town. Mellowcabs rides will be available
free of charge, paid for by advertising on the interior and exterior of the vehicles. Via
on-board tablets running geolocation software, passengers will be shown relevant
ads and promotions when the cab is in proximity to specific stores or restaurants.
Passengers can also connect to their social media profiles and use the tablet to take
photos of their ride, while an AR facility enables them to view tourist information as
they travel around Cape Town.
Trendwatching.com
19

20. ’Mobile’ Africa
– July 2013 saw Rwanda-based Jaguar Executive Coaches equip its
fleet of buses with wi-fi connections. Available across the
company's 24 buses, passengers can access wi-fi with a speed of
21.6mb per second. Jaguar Executive Coaches offer a shuttle
service between Kigali and Kampala in Uganda.
Trendwatching.com
20

21. ’Mobile’ Africa
Transport improvements promote economic growth and social development by
increasing mobility and improving accessibility to people, resources and markets.
South African cities have been struggling with divided and fragmented city
structures and poor public transport originated from the apartheid urban
planning. MyCiTi Bus in Cape Town and Rea Vaya in Johannesburg are linking
districts and people safely together by an affordable public transport system
which can be used with a smartcard. Gautrain between Johannesburg, O.R. Tambo
Airport and Tshwane (Pretoria) is connecting two cities more tightly together
21

22. Africa (collabo)rising
– Global brands seeking to connect
with the hundreds of millions of
eager African consumers are also
cushioning their entry into local
markets by teaming up with
established domestic brands.
– start dreaming up collaborations
that bring something genuinely
new, useful and of course needed
to consumers. And think beyond
just telecoms and financial
services brands: from traditional
offline organizations with online
startups to quirky brands with
prevailing incumbents.
22

23. Africa (collabo)rising
– August 2013 saw MTN Uganda partner with Kenya Airways to allow
customers to pay for airline tickets using MTN’s Mobile Money
platform. Customers can make reservations through the airline’s
website or office in order to obtain a reference number, which allows
them to then make payment via their mobile device.
Trendwatching.com
23

24. Africa (collabo)rising
– In June 2013, Orange Horizons (a subsidiary of Orange)
announced a partnership with South Africa-based
telecommunications brand Nashua Mobile. Via the partnership,
Nashua Mobile stores will offer Orange products at locations in
Johannesburg, Pretoria and Cape Town.
Trendwatching.com
24

25. Africa (collabo)rising
– In October 2013, Zambia-based mobile banking service Zoona launched a
partnership with international telecommunications group Airtel. Via the
partnership, Zambian Airtel customers can register for a free Airtel Money
electronic wallet with any of Zoona's agents who are based across the
country. Once registered, individuals can carry out transactions such as
deposits, bill payments, transfers and withdrawals with a Zoona Agent.
Trendwatching.com
25

26. Africa (collabo)rising
– July 2013 saw Kenya-based Bitcoin Wallet Kipochi partner with
M-Pesa to launch a service enabling consumers to send the
virtual currency (or convert it) to or from an M-Pesa balance.
Via Kipochi’s service, customers can receive money transfers
quickly and cheaply – even if they’re using a basic cellphone or
located in a remote area.
Trendwatching.com
26

27. Africa (collabo)rising
– In early 2013, Nigerian on-demand music platform iROKING partnered with 2go to
offer the users of the mobile messaging service and social network free downloads.
Whilst July 2013 saw MTN Nigeria launch a package designed to provide customers
with affordable access to Eskimi, designed to facilitate cheaper access to the popular
Nigeria-based mobile and social network. Through both collaborations, customers
can enjoy a variety of data bundle options, free chat rooms, file sharing and social
network browsing. Trendwatching.com
27

28. Africa (collabo)rising
– In July 2013, Red Bull Mobile partnered with South Africa-based
telecommunications provider Cell C to offer customers a prepaid mobile data
package. Consumers can access 200MB of data each month for a one-off fee
of ZAR 99 (around USD 10), as well as receiving access to the ‘World of Red
Bull’, a dedicated portal where customers can access perks (such as concert
tickets), competitions and exclusive content.
Trendwatching.com
28

29. Emergence of financial markets
and access to financial services
29
– Private capital flows to sub-Saharan
Africa reached 67 billion USD in 2012 and
overtook official development aid (42.5
billion USD).
– In several countries financial markets are
developing strongly attracting African
and international private banks open
their offices.
– In countries with underdeveloped
financial markets governments enact
appropriate laws and regulations for
financial services and set up payment
systems in order to create markets and
make them work.
– Developing investment funds targeted to
private sector are important players
enabling the growth and change.

30. Emergence of financial markets
and access to financial services
30
– Financial markets (markets for financial assets such as stocks,
bonds, currencies, commodities and derivatives) are
underdeveloped in several African countries. In some countries
formal financial markets are only in their infancy due to
inadequate laws, regulations and supervision, weak stock
exchanges, shortage of buyers and sellers of capital and simply
due to lack of capital.
– Situation has recently become better. Private capital flows (FDI,
portfolio investments and loans) to sub-Saharan Africa reached
67 billion USD in 2012 and overtook official development aid
(42.5 billion USD). Private local investors have managed to
accumulate capital. Governments enact appropriate laws and
regulations for financial services and set up payment systems in
order to create markets and make them work.

31. Emergence of financial markets and
access to financial services
– The uptake of insurance will create demand for
improved health-care services and widen access
to them.
– Personal loans and mortgages will lead to an
increase in demand in goods and services
related household items and cars
– Kenya has been ranked among the top three
African markets in terms of profitability for
insurance companies seeking expansion
opportunities
– Insurance uptake has doubled in the region
– Bank lending increased by 5.6 % in the first
three months of 2014 compared to last
December and is expected to continue its
growth
31

32. Emergence of financial markets and
access to financial services
– Kenyans hold more financial assets than the rest of East
Africa; diversification in the market for insurance
products
32

33. Emergence of financial markets and
access to financial services
– Kenya: FinAccess data shows a leap in the uptake of
medical, life and education policies which provide social
security in Kenya
33

34. Emergence of financial markets and
access to financial services
– Developers are offering mortgage solutions with banks
34

35. Emergence of financial markets and
access to financial services
– Mortgages are advertised by different banks all over
Nairobi
35

36. Financial service innovation
– South Africa has globally top
ranked financial services.
Mobile banking services and
applications are widely in
use.
– Also in Kenya financial
service are using newest
innovations on a global level
like mobile applications.
36

37. Financial service innovation
– The Kenyan company BitPesa plans to use the virtual currency Bitcoins to enable money
transfers in Eastern Africa at fair exchange rates. Senders can pay in an amount of money
in Bitcoins that will then be paid out by BitPesa to a bank, a mobile phone or in cash. The
fee charged is just 3% of the sum transferred. This will create some competition for the
usual money transfer providers like Western Union and MoneyGram, who charge high
fees and unfavourable exchange rates. BitPesa is currently waiting for approval from the
Kenyan authorities to begin its service
37

38. Financial service innovation
– Kopo Kopo uses the M-pesa platform to ease mobile
payments in East Africa
– Kenya: an estimated 162 financial access points for every
100,000 persons’ mainly mobile money agents
38

39. Financial service innovation
– MasterCard and Visa go head to head in control of Kenya’s
lucrative payments solutions market
– South African middle class can live without cash weeks and
use credit card basically everywhere: petrol stations, kiosks,
restaurants , weekend markets.
39

40. For Africa By Africa (FABA)
African solutions to African
challenges done the African way.
– For more conscious consumers, not only
are FABA innovations, products and
services more suited to their needs, but
in many cases, they are also closely
linked to ethical and/or sustainable
business practices. This is especially true
when these offerings make use of local
resources such as homegrown talents,
workforces or materials.
40

41. FABA
– The ‘Made in Nigeria’ Android tablet Bamboo D700 produced by Debonair
Devices and the South African-made Android smartphone by Seemahale
Telecoms were both launched in Q4 2013. Both gadgets are completely
manufactured in Africa and specifically designed with the African market in
mind with features such as dual SIM slots and local pre-loaded apps.
41

42. FABA
– Early 2013 saw international brewer SABMiller introduce its second
cassava beer on the continent with Eagle Lager in Ghana, in a bid to
cater to local tastes. Instead of barley, the lager is made with
indigenous cassava: a tuber, which is grown across Africa and is a
traditional staple food in many African diets.
42

43. FABA
– Released in South Africa in October 2013, Khumba is the country's first ever
movie to be produced in both Afrikaans and English. The second full-length
movie from Cape Town's Triggerfish Animation Studios, Khumba is a 3D
animated story for kids and families featuring a cast of colorful safari
characters typical of South Africa's indigenous animals.
43

44. FABA (also related to Urbanization and
Dietary changes)
– South African retail and fast food
chains are bringing services over
Sub-Saharan Africa mainly in new
shiny shopping malls.
– Just some examples of
franchising restaurant chains are
Spur, Steers, Nando’s , Chicken
Licken and Ocean Basket.
– Shoprite has currently 131 retail
stores in 16 countries throughout
Africa. Other big retail chains are
Pick n Pay and Woolworths.
44

45. FABA
– Kenyan nonprofit Ushahidi successfully secured Kickstarter funding for BRCK,
a portable, durable internet connection hub. Designed for use in African
countries without constant electricity, BRCK automatically runs off its own
eight-hour battery during power cuts and switches between Ethernet, wi-fi
and 3G or 4G networks depending on which signal is available.
45

46. Dietary changes
– The consumption of food is changing especially in
growing middle class
– Fast foods have picked up in popularity as city life
is becoming faster, e.g. KFC and Subway has
opened shops
– Concerns about healthy eating are starting to show
in the offering of products and the consumption of
low fat, low sugar and functional food products
– New foods will be demanded by middle class
urbanites as people change their eating habits:
– The demand for pasta, instant noodles, energy
drinks, cheese, wines, bakery products is growing
– Now nations of the hungry and obese
– Lacking of information about healthy nutrition
46

47. Dietary changes
– Hellofood feeds growing appetite for online meal
deliveries in Kenya, operations also in Rwanda and
Tanzania
47

48. Dietary changes
– Kenya: Online nutrition calculator aims to boost kids’
health as obesity rates are getting higher
48

49. Dietary Changes
Nations of the hungry and obese
– South Africa is heading for a health disaster: more than half
the population is living in hunger or at risk of it, while a large
percentage of the rest are obese or at risk of developing poor
lifestyle-related illnesses. Almost 80 percent of women had a
waist circumference of more than the 80cm that is regarded
as the cut-off point for obesity.
– About one in every five Zambian women aged 15 to 49 years
is overweight. In Zambia, reports show that obesity is more
prevalent in Lusaka, where close to 33 percent of women are
overweight. In Western province- the least obese, only 6
percent of women are overweight. There is also remarkable
amount of malnourished children.
49

50. Dietary changes
– Taittinger Champagne launches evening of bubbly at
Fairmont The Norfolk
50

51. Dietary changes
– On trend: Coffee Chains and franchises
51

52. Dietary changes
– Kenya: Increasing offering of low fat and health food
products in supermarkets
52

53. Wellbeing services - Fitness & Gym
– Growing middle class
– Growing health consciousness
– New status symbols:
gym membership, personal trainer, golf , jogging, cycling ,
(extreme sports in South Africa )
– South Africa is one of world leading countries in fitness
industry.
– South African large fitness chains are opening luxury studios in
neighbouring countries.
– Gym memberships have increased over the years. (Nigeria)
– Corporate bodies are also acquiring corporate membership for
their staff, or introducing some form of wellness program to
their entities. (Nigeria)
– Health Insurance companies give remarkable discounts for
gyms. (South Africa)
53

54. Wellbeing services - Fitness & Gym
Nigeria
Nigerians have taken more recognition of fitness and exercise.
This is a new trend and gradually becoming a status symbol;
from long walks, cycling, jogging amongst other forms of
exercise. Gym memberships have increased over the years.
more and more Nigerians are becoming regular members of
gyms. Corporate bodies are also acquiring corporate
membership for their staff, or introducing some form of
wellness program to their entities.
Studio classes are becoming popular. Instructors are becoming
creative with classes. A week does not pass without an
advertisement of fitness programs: boot camps, dance aerobics,
Zumba, salsa etc. Diet Programs are also more popular than
ever. There is higher demand for gym facilities and equipment,
professional fitness trainers and various fitness programs.
54

55. Wellbeing services - Fitness & Gym
– South Africa is one of the leaders of the health-club
industry across the world. South African top gym chains are
Virgin Active with 105 clubs -and about 600,000 members
as well as Planet Fitness with 23 clubs 160,000 members.
– Both clubs are offering luxury options and normal high
quality club options with modern gym equipment, classes,
swimming pools, personal trainers eg. Now they are
widening offering also to more simple and cheaper options
for lower income classes.
– Planet Fitness CEO Manny Rivera said: “We believe the
African market can carry at least another 100 sites,
throughout Africa.” Chains have already opened fitness
centers also in the main cities in neighboring countries :
Lusaka (Zambia), Luanda (Angola), Windhoek (Namibia).
55

56. Health care services
– Lacking facilities >> Building new hospitals
– Upgrading medical equipment, also information systems
– Dreaming about PPP , but e.g. Chinese building hospital(s)
– Lacking services in rural areas >> e.g. Building new health posts in Zambia
– Lacking educated people to provide services >> E.g. Education hospital in
Botswana opening soon
– Lacking laboratory services
– High level private services available in South Africa.
– Health tourism to South Africa , India, Germany etc.
56
“Sub-Saharan Africa, a
region considered to have
the worst healthcare in the
world” (KPGM 10.12.2013)

57. Health care services
Nigeria’s health care sector does not have enough facilities for
treating cancer, kidney and cardiovascular and neurological
diseases which are increasing along with the population growth
and ageing.
According to the coordinator of the National Cancer Prevention
Program (NCPP), no fewer than 80,000 Nigerians die from various
forms of cancer annually, with an estimated 10 people dying from
cancer every hour.
Due to lack of hospitals, clinics, technology, doctors and nurses a
good number of Nigerians spend millions of dollars on health care
in India, Germany and other foreign countries.
With the telecommunications boom, there is now the
opportunity for Nigeria to upgrade outdated healthcare
technology.
There is also the need to replace and upgrade medical equipment
and facilities.
57

58. Digimedicine
– Digitalization of services: mobile
health solutions and telemedicine
– Some drivers: growing
population, long distances, lacking
transport infrastructure, high use
of mobile phones, availability of
smart phones, lacking
professionals.
– Technology to support the public
health systems e.g. advisory
functions e.g. for pregnant
women, baby help lines
– Some trends: Adjusting to local
needs, robust equipment, scale of
services: from village up to 1
million people, education, FABA
– Also hospital information
solutions needed !
58

59. Digimedicine
– The Virtual Doctor Project a telemedicine initiative is pioneered in
Zambia linking rural clinics across the southern African country with
volunteer doctors around the globe using the local broadband network.
– The project, now running live in six Zambian sites, use eHealth Opinion
software to submit patient files electronically. Clinical officers, trained
to screen patients before they see a doctor, access this using Fizzbook
laptops. The dust-proof, splash-proof, robust laptops can be easily
transported and a battery backup means they can withstand Zambia’s
power cuts.
– The software allows the clinical officers to build a patient file which is
compressed and sent to one of the VDP’s medical experts in Zambia,
the UK, U.S., India, Pakistan, China, Nigeria, New Zealand or Malaysia.
The file includes the patient’s basic details, medical history, prescription
and the specific questions the Zambian clinical officers need answered.
– http://africahealthitnews.com/blogs/telemedicine/virtual-doctor-
project-telemedicine-project-zambia/
59

60. Digimedicine
When mHealth becomes just health: Mainstreaming mobile
technology into national health systems
This year, the South African National Department of Health will launch the
first coherent nationwide maternal mobile health system. South Africa
already has extremely high levels of mobile phone use, increasing the
potential of mobile technology to positively impact on maternal and child
health.
As part of the Campaign on Accelerated Reduction of Maternal and Child
Mortality in Africa (CARMMA), one of the targets of this system will be to
register 1 million pregnant mothers into a national public health database.
The goal is to register all pregnant clients attending public health facilities
as early in their pregnancy as possible, voluntarily subscribing them to
receive health promotion messages that encourage early attendance at
antenatal care visits.
60

61. Digimedicine
– Why telemedicine could be the answer to Africa healthcare
- Medical education
– http://africahealthitnews.com/blogs/current-news/africa-
health/why-telemedicine-could-be-the-answer-to-ailing-
africa-healthcare/
61

62. Digimedicine (also related to FABA)
– CardioPad, an African invention that enables heart
examinations like electrocardiograms (ECG) to be conducted
at remote, rural locations on a touch screen tablet and
wirelessly transfer the readings to heart specialist anywhere
in the country to interpret and render a diagnosis is been
used in Cameroon.
– http://africahealthitnews.com/blogs/current-news/africa-
health/why-telemedicine-could-be-the-answer-to-ailing-
africa-healthcare/
62

63. Demographics
– Drastic demographic
changes expected in Africa
as life expectancy increases
– Sub-Saharan Africa's current
population, at 856m, is little
more than Europe's and a
fifth of Asia's. By 2050 it
could be almost three times
Europe's and by 2100 might
even be three-quarters of
the size of Asia. By any
measure, Africa is by far the
fastest-growing continent.
63

64. Demographics
– Average Life Expectancy in Africa Increases from 50 to 54
64

65. Demographics
– Rwandan life expectancy doubles in last 20 years, study
finds.
65

66. Demographics
– Africa's populations look set to soar by 2100
66

67. Increasing energy production
through fossil fuels and nuclear
– Countries are building up their strategy for growing
demand - lot of remarkable projects coming
– South Africa – Lack of energy for growing demand –
large scale need large solutions – coal and nuclear
– Angola - Oil is the economy
– Mozambique – new energy sources gas and oil game
changers for the country
– Botswana – how to turn new huge coal reserves to be
ecologically accepted
– Kenya - large scale coal and geothermal solutions
– Tanzania – gas reserves will create new economic
activities
– Nigeria – privatization of electricity production is a
posibility
67

68. Increasing energy production
through fossil fuels and nuclear
South Africa
Coal: Two mega coal power plants are under construction. The
Medupi and Kusile stations will add about 10 GW to the electricity
capacity in 2014
Oil: South Africa has planned to upgrade its oil refineries to produce
cleaner fuels by 2017. The upgrade is estimated to cost R40 billion
or USD 4 billion. Most of the technology will be imported. State oil
company PetroSA has planned to build a new oil refinery which will
be Africa’s biggest with a capacity of 400’ 000 barrels per day
Gas: South Africa’s largest chemicals company Sasol is looking at
importing more natural gas from Mozambique as gas production
there increases. SA has large shale gas reserves and the
environmental effects of extracting shale gas is being debated
Nuclear: The final decision on 6-8 new nuclear units should be
made during 2014
68

69. Increasing energy production through
fossil fuels and nuclear
South Africa
Some signals related to nuclear and fossil fuels:
http://www.engineeringnews.co.za/article/nuclear-shale-gas-
should-be-part-of-sas-future-power-mix-peters-2013-03-01
http://www.bdlive.co.za/business/energy/2013/09/27/nuclea
r-project-going-ahead-bidders-to-be-invited
Russian Rosatom is a strong candidate to build the new
nuclear power plants:
http://www.iol.co.za/business/international/nuclear-deal-not-
done-1.1629776
Shale gas could change the energy game in South Africa in the
future
http://www.bdlive.co.za/business/energy/2014/03/24/shale-
gas-can-be-a-game-changer
69

70. Increasing energy production through
fossil fuels and nuclear
Mozambique
Natural gas: Mozambique has an estimated 180 trillion cubic feet of
natural gas reserves in the northern Rovuma basin and the coming
production of gas will make it one of the biggest global producers of
natural gas in the future.
The biggest investors in the Mozambican offshore gas industry are
American Anadarko and Italian ENI and plans for LNG plants are
underway. A USD 10-15 billion LNG plant is planned to Palma, in the
northern Mozambique. ENI has also planned a floating LNG rig to be
located in its block.
http://www.macauhub.com.mo/en/2014/05/09/eni-and-anadarko-
may-carry-out-mozambican-natural-gas-liquefaction-project-in-
partnership/
Oil: Mozambique is becoming an oil producer in 2014. Oil reserves
may be significant. Coal: two large coal-fired power plants projects
(Benga 2000 MW and Moatize 2400 MW)
70

71. Increasing energy production through
fossil fuels and nuclear
Botswana
Coal: Botswana has significant coal reserves and some coal power
projects are going on or planned for the near future
– http://www.engineeringnews.co.za/article/botswana-to-
push-power-infrastructure-investment-as-power-imports-
phased-out---frost-sullivan-2012-05-18
– http://www.engineeringnews.co.za/article/botswana-can-
become-major-energy-corridor-kalahari-energy-2012-06-27
– The increased coal power generation could allow Botswana
to export electricity in the future
– There are several projects in planning for processing coal to
liquid fuel
– Botswana is believed to have underground gas in Central
Kalahari and the exploration is starting
http://www.theafricareport.com/Southern-Africa/botswana-
grants-gas-exploration-rights-in-kalahari.html
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72. Increasing energy production through
fossil fuels and nuclear
Angola
Oil: Angolan state-owned oil company Sonangol targets to
increase Angolan oil production from 1.8 million barrels per
day to 2.0 million barrels per day by 2015 with new deep-
water oilfields coming online.
Angolan government has planned to auction 10 onshore
blocks during 2014.
Sonangol is building a new oil refinery with a capacity of 200
000 bbl/d in Lobito, scheduled to be completed by 2018.
There are several upcoming oil projects in Angola.
Gas: there is a 700 MW power plant project called Soyo which
will be operation in 2016-2017.
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73. Increasing energy production through
fossil fuels and nuclear
Kenya
Kenya Electricity Generation Company to focus on capacity
expansion in coal (and geothermal – see Renewable energy)
Kenian tyre manufacturer will invest in a 6MW power plant of its
own.
Tanzania
Tanzania has large natural gas reserves and will build gas-fired
power plants.
Zanzibar wants to have own power generation.
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74. Renewable energy – Large scale renewable projects
in several countries: Hydro ,
Wind , Solar
– Support in developing country
strategy may pay back in
project phase – Danish
Windenergy Atlas in South
Africa
– South Africa as leading
example : Nearly 4 000 MW of
renewable energy capacity is
being built and an additional
4 000 MW is to be procured by
2020. Roughly half of the first
4 000 MW is wind and another
half solar.
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75. Renewable energy
The Africa Clean Energy Corridor initiative, launched at the
International Renewable Energy Agency (Irena) Assembly in
January 2013, aims at accelerating expansion of renewable
electricity production in Africa. The initiative will focus at first on
the Eastern Africa Power Pool (EAPP) and Southern Africa Power
Pool (SAPP), extending from Egypt to South Africa, but would
have future prospects to be extended to other power pools on
the continent.
South Africa: Nearly 4 000 MW of renewable energy capacity is
being built and an additional 4 000 MW is to be procured by
2020. Roughly half of the first 4 000 MW is wind and another half
solar. Of the additional 4 000 MW to be procured by 2020, 800
MW has been allocated to co-generation projects, most of which
is likely to be biomass. South Africa was one of the global top 10
receivers of investments into renewable energy in 2012 at USD
5.7 billion, ahead of Brazil and France
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76. Renewable energy
Mozambique plans to increase its power generation capacity with
new hydro power plants. There are 8 hydro projects. There is a lot
of potential to develop generation by biomass, geothermal and
solar, as well. A new renewable energy atlas indicates that
projects could be planned:
http://www.macauhub.com.mo/en/2014/04/08/mozambique-
draws-up-renewable-energy-%E2%80%9Catlas%E2%80%9D
Zambia has several hydro power projects. If all of them are
realized, the capacity will increase by over 4000 MW.
A biofuels industry could emerge in Zambia to help reduce its
dependence on imported fuels. http://www.zambian-
economist.com/2014/02/economics-of-biofuels.html
Kenya is to start building 300MW wind park with partial funding
form Finnfund.
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77. Renewable energy
Nigeria has the following targets for renewable sources:
– 18% of electricity from renewables by 2025
– 20% of electricity from renewables by 2030
– 100 MW of small hydropower by 2015 and 760 MW by 2025
– 300 MW of solar PV by 2015 and 4000MW by 2025
– 40 MW of wind Power by 2020
– 30 MW of biomass–fired capacity by 2020
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78. Regional transmission of electricity
– There are numerous huge projects in transmission
of electricity
– The Africa Clean Energy Corridor would create a
5000-mile north-south electricity transmission
network stretching from Egypt through Sudan,
South Sudan, Ethiopia, Kenya, Malawi,
Mozambique, Zambia and Zimbabwe to South
Africa. Of particular importance is the Ethiopia -
South Africa line to be completed by 2020.
– Another priority project is the 2300-mile Central
Africa Transmission Corridor linking the Democratic
Republic of Congo to South Africa through Angola
and Namibia, and north to Chad through Equatorial
Guinea, Gabon and Cameroon.
– New fossil and hydro power generation units need
to be connected to transmission lines
– New Renewable energy generation will change the
structure inside countries .
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79. Regional transmission of electricity
The Eastern Africa Power Pool (EAPP) will link member
countries with HV transmission lines.
One example is an 1100 km long 500 kV DC transmission line
from Ethiopia to Kenya with a power transfer capacity of
2,000 MW. This is at an advanced stage of implementation.
The line would enable these two countries to benefit from the
respective advantages of their own power systems, which
have strong complementarities: the bulk of Kenya's
generation is expected to come from geothermal and fuel
fired thermal plants, while Ethiopia possesses a large
potential of hydro power.
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80. Jobs in Africa
– Creating jobs is one of
leading political targets in
many African countries
– Countries are on the way
from resource based
economies to be
manufacturing countries.
– There is high demand for
vocational training to fill
new jobs with skilled people
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81. Jobs in Africa – Creating jobs is one of
leading political targets in
many African countries
– Countries are on the way
from resource based
economies to be
manufacturing countries.
– There is high demand for
vocational training to fill
new jobs with skilled people
– Infrastructure investments,
mining sector growth and
developing agriculture and
food production are on
going jobs creators
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82. Jobs in Africa
– Creating local business
– South Africa is investing strongly in energy production and
infrastructure to create jobs.
– There is demand of local content in public project
tenderings. Some new results:
– Establishing solar panel manufacturing company
– Train factory is under construction.
– Botswana moved their diamond sales from London to
Gaborone so that activity would create jobs in tourism and
services in Botswana.
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83. Jobs in Africa
– There is competition in attracting mining investments for
creating jobs. Many of the African countries have made new
mining laws to attract investments.
– Countries like Botswana, Namibia and South Africa which
have mining industry are putting their efforts now in creating
beneficiation of minerals in their countries.
– Global mining companies over Africa are activating and
educating local suppliers. Drivers for this are social
responsibility, laws and need for suppliers in new
productions regions.
– South African mining companies have to purchase high
amount of their supplies from local companies and
companies with 25 % of black ownership. If targets are not
reached mining licenses are in danger.
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84. Jobs in Africa
– Creating employment through green jobs
– the Youth Jobs in Waste Programme, which will create 3577
jobs once it is fully operational in the provinces, and the
Wastepreneur programme, which is being implemented
through the department’s Green Fund and aims to create job
opportunities for the youth and women. The Wastepreneur
programme has created about 2 350 jobs to date, with a final
target of creating 4400 jobs by the time the project is fully
operational in KwaZulu-Natal and Gauteng in South Africa
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85. Jobs in Africa
– Unemployed Portuguese find jobs in Africa
– Many unemployed from Portugal move to Angola or
Mozambique due to work opportunities. There used to be
Africans coming to Europe to work, but now the stream
seems to be shifting at least in the depression struck
countries. Economies in Mozambique and Angola are
growing strongly . Skilled workforce is needed to get new
resources like gas and coal in to use.
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86. Education Empowering
– Health care education turns towards mobile and social
media
– New value added manufacturing demands people with
skills that not exist in the market – vocational training
models are searched e.g. from Germany
– Multi national companies provide basic and professional
education as part of their corporate social responsibility
programs
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87. Thank you!
Finpro Eastern Africa: Esa Rantanen, Henrik Reuhkala, Velma Obuya
Finpro Southern Africa: Heta Pyhälahti, Eetu Kielo, Valtteri Vuorenpää
Finpro Western Africa: Olu Raheem
Finpro Region Finland: Anna Erkkilä, Juha Wilen, Niko Herlin, Sonja Antell, Virpi
Vaittinen
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