Seeds of Opportunity: The African Growth Series
October 2022 | Issue 3
In this week's issue, you will learn more about:
- Africa's Natural Gas and Hydrogen Potential
- Virtual technology in the South African Construction Industry
- Mauritius: The Development of a Strong Innovation Economy
- ERP Myth 15: It Takes One Big Push!
- Exploration into the role of T&D in Africa's low energy access rates
Africa's Natural Gas and Hydrogen Potential
Africa remains the world’s poorest continent in terms of energy generation. Africa’s energy poverty was first highlighted almost ten years ago when it was announced that 1.2bn people lacked access to electricity, with half of them living in SSA. This number has not changed if at all has been amplified due to the impacts of the coronavirus pandemic and other economic events. With a global push for decarbonisation in recent years, renewables have become the leading technology receiving investments for further development and deployment, with funding for other technologies, such as natural gas, being scrapped altogether. This might work for regions such as Europe, where a sufficient base load is installed to bridge the gap, but the picture looks very different in African countries. The vast majority of African countries are not undergoing a transition; they are still stuck in establishing their energy infrastructure. Renewables alone, while certainly the main constituent of any energy mix, won’t be able to allow Africa to achieve the economic development it so drastically needs. The development of natural gas-powered infrastructure would help Africa overcome some of its economic challenges and lay the foundation of the African hydrogen economy. The continent has been identified as the region with the highest potential for producing green hydrogen at below USD 2 per kWh. While the region has only a few announced hydrogen projects, the number is expected to increase in the coming years. In the meantime, developing a natural gas economy in Africa would lay the foundation upon which the green hydrogen economy could be built, as the natural gas infrastructure, such as power plants and pipelines, can be retrofitted at marginal costs. Africa's natural gas and green hydrogen opportunity are there; it needs global financial support and local regulations/policies to develop Africa’s energy economy fully.
Virtual technology in the South African Construction Industry
Technology tools such as laser scanning, 3D printing, on-site robots and small drones are changing the way in which construction projects are executed in the global construction industry. These technologies are being implemented to deliver cost-effective projects while improving the efficiency of a construction project and increasing data accessibility. In South Africa, the construction industry employed 1,7 million people in the second quarter of 2022, highlighting the sector’s significance in the South African economy. Virtual and augmented reality are technology tools that are being implemented in the construction industry to reduce project costs, improve the quality of project deliveries, and increase productivity levels. These technology tools have already taken root in the local industry as the cost of programmes and applications becomes more accessible to medium-sized and niche contractors looking to expand their businesses.
These technologies further enable owners and contractors to visualise what a project (building) will look like before construction commences while tracking the building process throughout various stages of the project. These technologies further streamline several processes, such as coordinating various teams, managing meetings, deadlines and the delivery of projects.
Due to its agility, virtual and augmented reality applications are being integrated into standard construction software. As the technology matures and gains more recognition and acceptance, its application presents new exciting opportunities for the South African construction industry.
Mauritius: The Development of a Strong Innovation Economy
In the annual Global Innovation Index for 2022, Mauritius has been ranked 45 out of 50 of the world’s most innovative countries by the World Intellectual Property Organization (WIPO). The Index evaluates an economy’s level of innovation based on its institutions, technology, and human capital. Despite the seemingly endless battles caused by the Covid-19 pandemic, alongside the more recent and pressing issues brought on by the crisis in Ukraine, Mauritius has developed an innovative economy that has withstood these hurdles. At the core of the success of the country is the recognition of the key role digital infrastructure plays in development, progress, and growth. This is evidenced by the Mauritius Research and Innovation Council (MRIC) – which has been established by parliament and operates under the Ministry of Information and Technology, Communication, and Innovation. This framework functions to develop research and development (R&D) grant schemes, and therefore serves as a catalyst for the development of intellectual property. This has direct implications for the financial risk associated with R&D for both academic institutions and the private sector. As a result, Mauritius hosts some of the most innovative start-ups, such as CoffeeChat – a coaching-as-a-service (CaaS) platform that allows companies to offer exclusive and executive coaching for their managers. This is an indication of not only one of many frameworks currently in place in Africa but also of the growth potential for the innovation economy of the continent.
ERP Myth 15: It Takes One Big Push!
With any major shift or change in an organisation, there are always a number of individuals which hesitate to let go of the familiar. Companies therefore utilise formal organisational change management tools and principles to achieve alignment and embed the revised behaviour. ‘It Takes One Big Push!’ is the 15th myth from our whitepaper co-developed with SYSPRO busting the common myths that occur along the four lifecycle phases of ERP system from selection to implementation and management. The whitepaper therefore unpacks myths from when companies decide to get an ERP to the continuous management of the system. This post highlights how change management is often restricted to the initial implementation phase of the ERP lifecycle. In contrast, continuous change management activities ensure the best use of an organisation’s ERP system. Constant software updates can leave employees missing new improved productivity features and/or avoid employees reverting to old processes and protocols. Hence continuous change management programmes during the management phase of the ERP lifecycle is crucial to maximise the value derived from investing in the system. To read more on ERP Myths & Truths, please click here to visit SYSPRO's content library.
Exploration into the role of T&D in Africa's low energy access rates
Is the African transmission and distribution (T&D) sector the continent’s true culprit of energy insufficiency and not the lack of generation capacity? To explore this theory you first need a general understanding of the current landscape, writes Patrick Prestele.
Learn more by clicking HERE.
To find out more about opportunities in Africa, please contact Lynne Martin.
