Seeds of Opportunity: The African Growth Series
May 2024 | Issue 4
In this week's issue, you will learn more about:
- AFRICA TREND: Electric Trucks Now Available for Rental Nationwide
- AFRICA TREND: Ivory Coast's Gold Mining Boom
- EXPERT INSIGHT: Bioplastics in Africa: A Green Revolution
- AFRICA OPPORTUNITY: Exploring Bioplastics as a sustainable and health-conscious solution
- AFRICA TREND: Free State Set to Become the Heart of EV Charging Network in South Africa
- UPCOMING EVENT: African Smart Cities Summit | Johannesburg
AFRICA TREND: Electric Trucks Now Available for Rental Nationwide
Last year, Volvo Trucks South Africa introduced electric trucks to their product offering. This year, Volvo Trucks SA has taken the next step and is now offering these electric trucks on a rental contract basis.
Volvo SA believes there is a strong demand for equipment-as-a-service (EaaS) in South Africa, as there are many companies with strong environmental ambitions wanting to pursue cleaner alternative transportation but without the necessary initial capital to do so, says SA sustainable solutions senior manager Eric Parry. A high capital cost is involved with purchasing these electric trucks, especially if the contract with a customer is short-term. Volvo SA has also partnered with a service provider to provide the necessary charging infrastructure during the rental period. Volvo SA will work with potential customers to determine the optimal location and size of the charger to suit the customer's specific needs, after which the customer has the opportunity to rent this infrastructure for the duration of the vehicle rental.
This represents another fantastic opportunity for more companies in South Africa to benefit from the distinct advantages of using electric vehicles mentioned in last week's post (see the comments to catch up). The infiltration of electric vehicles into another South African market further highlights the interest and opportunity in this space.
AFRICA TREND: Ivory Coast's Gold Mining Boom
Ivory Coast's gold mining sector is on an impressive growth trajectory, with a record-high production of about 48 tonnes in 2022, a 14% increase from the previous year. The sector's rapid expansion is fuelled by the discovery of several new gold mines, including the significant Koné project by Montage Gold, set to become the largest gold mine in the country.
The Koné project, expected to start production in 2027, holds reserves of around 4 million ounces and could increase the country's yearly national gold production by 20%. This underscores the government's commitment to diversifying the economy and reducing dependency on cocoa, which has been the country's leading foreign exchange earner.
To expand the mining sector's contribution to GDP from 5% to 8% by 2030, Ivory Coast is attracting major international mining companies such as Fortuna Silver Mines Inc., Tietto Minerals Ltd (ASX:TIE), and Endeavour Mining. The country's gold sector has long been seen as promising, indicating a significant growth opportunity.
EXPERT INSIGHT: Bioplastics in Africa: A Green Revolution
Every aspect of our everyday lives involves the use of plastic in one form or another. From electronics to water bottles and cars to children’s toys, there seems to be an insatiable demand for products crafted from fossil fuel-based material. This results in immense environmental strain, as landfills spill over into the natural environments and oceans, leaving traces of plastic in our soil and water sources. Plastic waste is becoming an issue that we can no longer choose to ignore, as our beaches, cities, and land is littered with plastic that will never biodegrade and disappear. This necessitates a search for new materials for manufacturing products.
Are bioplastics the answer? It can serve as a plastic material that is kinder to the earth but does not compromise on its capacity to fulfill global demand. Bioplastics can be either bio-based or crafted from fossil-based feedstocks and can be either biodegradable or non-biodegradable. When a bioplastic is bio-based, it means that it is made from a feedstock such as sugarcane, corn, wood, or glycerol to name a few. Biodegradability describes the material’s ability to decompose and ultimately disappear in natural or industrial conditions. Examples of biodegradable bio-based plastics include but are not limited to PLA, Bio-PET, and PHA.
Figure 1: Types of Bioplastics by Feedstock and Biodegradability, Global, 2024
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Bioplastic production capacity, compared to plastic production capacity, is skewed in favour of cheap, widely available fossil-based plastics, exhibited in its 1.05% market share in 2024. Globally, over 4 million tons of plastic are produced yearly, which is expected to increase to nearly 5 million tons by 2028. Therefore, the 4 thousand tons of bioplastic seems insignificant on this scale but is growing at an annual rate of almost 18% which is definitely in the right direction.
Figure 2: Bioplastic and Plastic Production, Thousand Metric Tons, Global, 2023
The pros of transitioning to the use of bioplastic in Africa are multifaceted, as the material has the capacity to tackle the global waste crisis on our hands. Choosing biodegradable plastics means that, should waste management systems fail to collect bioplastic materials, the products will not continue to pollute the earth but will degrade over time. This will positively impact Africa’s natural scenery, as plastic litter will no longer be a concern. Additionally, the global demand for bioplastics is growing at an incredible rate, creating a manufacturing opportunity that Africa could fill. This could create jobs, improve the socioeconomic landscape of the continent, and position Africa on the cusp of sustainable development manufacturing.
The downsides of bioplastic bring reality into focus and include the fact that bioplastic is significantly more expensive than fossil-based plastic, costing between 3-5 times the cost of plastic. This makes implementing bioplastic difficult due to Africa’s price sensitivity, meaning that only niche applications or high-end products can use bioplastic successfully. Secondly, the technical knowledge and equipment associated with bioplastic manufacturing are both hard to come by and expensive, making it difficult to initiate production processes in Africa.
That being said, Africa is extremely well-placed regarding feedstock availability and proximity to major European demand markets, meaning that the basis for a thriving bioplastics sector is ready and waiting for new investment. Establishing new industries in Africa would have an immeasurable impact, having the capacity to transform livelihoods and place Africa at the centre of the global green revolution.
AFRICA OPPORTUNITY: Exploring Bioplastics as a sustainable and health-conscious solution
In delving into the world of sustainability and innovation, we focus on the potential of bioplastics to revolutionise Africa's approach to plastic usage and improve public health.
Learn more in this insightful Q&A session with Sarah Slabbert, Consulting Analyst at Frost & Sullivan Africa, as she discusses the opportunities and challenges surrounding bioplastics in Africa with Bizcommunity.com.
AFRICA TREND: Free State set to Become the Heart of EV Charging Network in South Africa
Zero Carbon Charge (ZeroCC), a local independent power producer (IPP), has signed a memorandum of understanding with the Free State provincial government to introduce 23 new charging stations in the Free State. The Free State is a hugely important halfway point between large economic hubs Johannesburg and Cape Town. The addition of charging stations in this area will greatly facilitate the cross-country movement of EVs in South Africa. Seven of these stations will be dedicated to trucks.
ZeroCC has harnessed innovative technology to ensure these charging stations are solar-powered. There is concern that EVs receiving a charge through ESKOM are still contributing to the carbon footprint as this power is coal-based. In addition, load-shedding severely impacts the reliability of a charge. These charging stations will have adjacent solar panel fields which will supply the stations, and by harnessing new battery technology, ZeroCC will be able to ensure that their stations are fully operational during cloudy days, at night, and during load-shedding. South Africa continues to experience new investments in EV infrastructure, contributing to the viability of this technology in the country.
UPCOMING EVENT: African Smart Cities Summit | Johannesburg
[NEXT WEEK] Join us at the African Smart Cities Summit on 5 June at the Gallagher Convention Centre in Johannesburg.
Be a part of the discussion at 09h30 as Liteboho Makhele (Programme Manager: Sustainable and Resilient Cities, South African Cities Network) moderates the session on African Smart Cities: Trends, challenges and opportunities for the future.
Panellists will include:
▪ Lacina Koné Kone, Chief Executive Officer, Smart Africa, Rwanda
▪ Hendrik Malan, Partner & CEO, Frost & Sullivan Africa, South Africa
▪ Mara Zhanet, Founder & Chief Executive Officer, Jacaranda Hub, Zambia
▪ Derick Mandiwana, Smart City Lead, City of Tshwane, South Africa
This is one of the must-attend events in the smart cities calendar, so secure your delegate pass now and see you there: https://bit.ly/3UleQ5A
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
