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P36 Solar Expansion ATR June 2021 Cover_Layout 1 28/05/2021 16:30 Page 1 www.africanreview.com Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12 BUSINESS CONSTRUCTION POWER MINING How tech is helping entrepreneurs What’s new in the construction Can Brazil’s favelas energy Critical minerals set to soar as the build sustainable businesses P17 machinery and equipment industry? P24 projects teach Africa lessons? P34 world pursues net zero agenda P43 JUNE 2021 African Review of Business and Technology African Review P36 SOLAR EXPANSION How solar projects are shaping the energy mix of the future June 2021 P20 MSME SECTOR POST-COVID Why micro-, small- and medium-sized businesses are foundational for economic recovery P38 SPARE PARTS How OEMS are improving customer support Volume 58 Number 05 Volume P16 www.africanreview.com “The African continent is not weighed down by legacies that other parts of the 58YEARS world would struggle with.” Emmanuel Osanga, head of Africa Regions Data SERVING BUSINESS IN AFRICA SINCE 1964 Office at Standard Bank Group S01 ATR June 2021 Start_ATR - New Master Template 2016 25/05/2021 11:05 Page 2 S01 ATR June 2021 Start_ATR - New Master Template 2016 28/05/2021 17:40 Page 3 Editor’s Note elcome to the June issue. Our cover story focuses on the solar projects and solutions, located on Wand off the grid across Africa, that are making a difference to the continent’s energy mix, page 36. Economist Moin Siddiqi explores how micro-, small- and medium-sized businesses are the answer to the economic recovery following the Covid-19 pandemic, through creating employment and combatting poverty, page 20. Elsewhere in the issue, we look at what’s new in the construction equipment and machinery industry, page 24. Over in the power section, we see how important it is to have an efficient service support and spares’ supply chain to ensure power continuity for companies, page 38. Finally, clean energy demand for critical minerals is set to soar to meet zero carbon goals, according Cover picture: Benban Solar Park in Egypt. to the latest report by the International Energy Agency. It warns that there is “a looming mismatch © EBRD between the world’s strengthened climate ambitions and the availability of critical minerals that are Cover Inset: Emmanuel Osanga, essential to realising those ambitions”, and if action from governments is delayed could “hamper head of Regions Data Office at Standard Bank Group. © Standard Bank Group international efforts to tackle climate change”, page 43. Editor: Samantha Payne Samantha Payne, Editor Email: [email protected] Editorial and Design team: Mariam Ahmad, Prashanth AP, Fyna Ashwath Miriam Brtkova, Praveen CP, Manojkumar K, Nonalynka Nongrum Unique Pattnaik, Rahul Puthenveedu, Deblina Roy, Vinita Tiwari and Louise Waters Contributing editor: Martin Clark Publisher: Nick Fordham Sales Manager: Richard Rozelaar Email: [email protected] Magazine Manager: Jane Wellman Contents Tel: +44 207 834 7676 Fax: +44 207 973 0076 Email: [email protected] India TANMAY MISHRA Profile Tel: +91 98800 75908 Emmanuel Osanga, head of Africa Regions Data Office at Email: [email protected] 16 Standard Bank Group, shares the tech trends that cannot Nigeria BOLA OLOWO Tel: +234 80 34349299 be ignored in 2021 and beyond. Email: [email protected] UAE MURSHID MUSTAFA Tel: +971 4 448 9260 Fax: +971 4 448 9261 Technology Email: [email protected] 17 Bradley Pulford, the new managing director and vice UK RICHARD ROZELAAR president of HP in Africa, unveils the benefits of rapid P16 Tel: +44 20 7834 7676 Fax: +44 20 7973 0076 adoption of technology for businesses and societies in Email: [email protected] Africa amid the Covid-19 pandemic. USA MICHAEL TOMASHEFSKY Tel: +1 203 226 2882 Fax: +1 203 226 7447 Email: [email protected] Head Office: Alain Charles Publishing Ltd, University House, Warehousing 11-13 Lower Grosvenor Place, London SW1W 0EX, United Kingdom 18 Nigeria’s warehousing market is projected to grow until Tel: +44 (0)20 7834 7676, Fax: +44 (0)20 7973 0076 2023 thanks to the country’s ambitious infrastructure plans Middle East Regional Office: Alain Charles Middle East FZ-LLC, and evolving e-commerce market, worth US$13bn. Office L2-112, Loft Office 2, Entrance B, PO Box 502207, Dubai Media City, UAE, Tel: +971 4 448 9260, Fax: +971 4 448 9261 Production: Srinidhi Chikkars, Dinesh Dhayalan, Swati Gupta and Nelly Mendes P20 Business E-mail: [email protected] 20 Economist Moin Siddiqi looks at the importance of micro-, Chairman: Derek Fordham small- and medium-sized businesses in the economic Printed by: Buxton Press recovery following the aftermath of the pandemic. Printed in: MAY 2021 ISSN: 0954 6782 Construction 24 We look at the latest announcements in the construction SUBSCRIPTIONS: equipment and machinery industry to meet the demands Rates for one year (11 issues): of a booming construction market. Europe €107, Kenya KSh3400, Nigeria N6600, South Africa R460, United Kingdom £77, US$140 P24 To subscribe: visit www.africanreview.com/subscribe For any other enquiry email [email protected] Power 38 Some leading OEMs in the power industry share their efficient spare part supply chain to African customers and how different countries present different challenges. Mining Serving the world of business 44 We reveal the steps that mining companies need to take in their digital journey to stop them lagging behind their P38 competitors. S02 ATR June 2021 News North_ATR - New Master Template 2016 24/05/2021 15:30 Page 4 NEWS | NORTH Renewables supplied a third of Africa’s electricity growth throughout 2020, says think tank report Think tank Ember has published an analysis of global electricity usage, which showcased resilient growth in solar and wind energy throughout 2020, meaning the two renewables alone powered almost 10% of the world’s electricity. In Africa, more specifically, data from 2014 to 2019 showed that a third of the rise in Africa’s electricity demand was met with renewable energy. Morocco and Kenya remain the continent's leaders in renewables, ahead of the world average. The pandemic led to the first fall in electricity demand since 2009, with the incremental fall of 0.1% less of an impact than the financial crisis. Wind and solar power continued global growth in spite of this demand fall, with a 15% rise year-on-year from 2019. This led to a record fall of 4% for coal power. On the continent specifically, Morocco and Ember Image Credit: Kenya generated 16% and 15% of their electricity number of recent solar projects contributed to enough to keep up with rising electricity respectively from wind and solar in 2019. These its demand. South Africa generated 6% of its demand, not just for Africa, but across the world. figures reflect Morocco’s rapid increase in solar electricity from wind and solar in 2020, tripling Emerging economies, such as India and Turkey capacity, increasing from near-zero in 2015 to the 2015 figure, but still remaining below the are accelerating their deployment of wind and accounting for 4% of its electricity in 2019. Kenya global average of 9.4%. solar beyond the increase in electricity demand, has seen rapid acceleration in wind capacity, Fossil fuels still contributed 61% of the world’s to actually reduce their dependence on fossil from 1% in 2015 to 14% in 2019. Solar fuels less power in 2020, down from 66% in 2015, when fuels. Wind and solar have the potential to power than 1% of Kenya's electricity demand. the Paris agreement was signed. Coal Africa’s electric future, and rapid deployment of In 2019, Nigeria and Algeria generated contributed to 34% of the global figure. these technologies will be essential for African more than 1% of their electricity from wind and Peter Tunbridge, an analyst at Ember, said, countries to meet their rising demand for solar, Egypt increased to 3% in 2019 after a “The challenge remains to build renewables fast electricity, whilst avoiding a fossil gas trap.” BOSCH REXROTH EGYPT OPENS FOR BUSINESS IN CAIRO Responding to a national demand for high-quality continental economy, Egypt offers attractive products, solutions and service needs of both end- pneumatic, hydraulic and automation solutions potential for new markets, in close co-operation with user market and local distributors. across Egypt, Bosch Rexroth Egypt has opened for our local professional partner network.” “We see a lot of potential for our planned business in the nation’s capital, Cairo. Bosch Rexroth supplies products to a number activities across multiple Egyptian industries,” The premises will offer the full range of Bosch of Egyptian industries, including power generation, added Ait-Yacine. Rexroth products, with a number of complementary oil & gas, metallurgy, cement, heavy machinery Tillmann Olsen, regional president, Africa, Bosch offerings, services and solutions to shorten the and construction.” Rexroth AG, explained, “Despite Covid-19, we were turnaround from order to delivery. Alongside Bosch Rexroth Egypt’s established able to recruit and set up the ERP system in a short Abderrahim Ait-Yacine, general manager at Bosch network of professional industry partners, the local time. This allowed us to win the first order in a very Rexroth Egypt, explained, “As a strong regional and team at the premises will serve the automation short time, which has been successfully delivered." BRIEFS MENA power financing to rise MENA data centre market to grow APICORP's latest MENA energy investment The data centre market across Middle East and outlook reflected a US$13bn rise in committed and North Africa (MENA) is anticipated to grow at a planned energy investment year-on-year, with CAGR of around 8% between 2020 and 2026, renewables claiming a significant share of almost Adobe Stock Image Credit: based on a market report from Aritzon.
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