Browsing: Energy sector in Africa

Mining activities are some of the most power-intensive globally, with electricity required to operate haul trucks, earth-movers, underground excavators, blasting tools and mining drills accounting for up to 40% of a company’s total expenditures. Regionally, southern Africa is forecast to elicit some of the largest power requirements in mining on the continent – led by South Africa, Mozambique and Zambia – and followed by Central and West Africa. With COVID-19 leading to production site shutdowns, loss of output and volatile commodity prices, the ability to reduce operational expenditures – via electricity costs – has risen to the forefront of mining firms’ agendas.

And yet there are two major impediments to accessing sufficient quantities of low-cost electricity. First, Africa is home to some of the lowest electricity access rates globally, with a lack of infrastructure, unreliable grids and frequent blackouts posing a major threat to output and production efficiencies. The Democratic …

With a favorable geographical position on the westernmost point of Africa, an abundance of natural resources, and strong political leadership and stability, Senegal is set to transform its economy through the development of its energy sector. The country is endowed with vast natural resources, including significant natural gas reserves and renewable energy sources, and has committed to the diversification of its energy mix to meet rising energy and electricity demand.  With a clear presidential vision in which the energy sector is seen as a key driver of economic growth, H.E. President Macky Sall is pursuing increased investment in Senegal’s growing energy industry. Through the promotion of an attractive business environment, the implementation of industry supportive regulation, and an integrated sectoral approach, H.E. President Sall is transforming the country into an energy hub.

Also Read: 8th Angel Fair Africa to be held in Senegal

Senegal boasts immense oil and gas discoveries …

The Energy sector has received substantial capital commitments. In the course of the continent’s growth, the sector has seen lucrative returns and enormous risks and losses. The energy sector’s main upside has been the increased economic growth and development witnessed on the continent. 

The story has not been an absolute success, however, with some huge losses incurred. The government mainly monopolizes the energy sector in Africa as it provides a critical service to the economy. Failure of the sector could result in a catastrophic collapse of the economy across all fronts.  

The impact of mergers in the Energy Sector

Operational cost-efficiency

South Africa has recently welcomed a major energy merger that is effective 1 April 2021. PetroSA, iGas, and Strategic Fuel Fund are set to become one entity called the South African National Petroleum Company. A deal has the potential to produce high-value returns for investors and substantial developments in …