Seeds of Opportunity: The African Growth Series
September 2023 | Issue 4
In this week's issue, you will learn more about:
- AFRICA TREND: Is there a quick fix to South Africa’s loadshedding woes? The short answer is no…
- AFRICA TREND: Broadening Internet Access
- PODCAST: Improving access to the internet and digital solutions and the potential for African Intelligence
- EXPERT INSIGHT: Price, People and Power in Africa's Technology Market
- UPCOMING EVENT: Hydrogen-Africa 2023
- UPCOMING EVENT: African Energy Week 2023
AFRICA TREND: Is there a quick fix to South Africa’s loadshedding woes? The short answer is no…
The long-term impacts of the mismanagement and poor maintenance at Eskom will take years to fix. Apart from the operational issues at the various power plants, the utility is massively in debt, and continuous restructuring of the leadership at the helm of Eskom is not helping the process. Opinions are being voiced that Eskom should invest less in additional renewable capacity (which requires a large-scale investment into the grid) and more into fixing and extending the lifetime of the existing coal fleet, with Eskom unable to fund both simultaneously. While this makes sense for a short-term fix, the country needs to look at the issue long-term. South Africa increasingly relies on investment from the developed world, pushing the green energy transition agenda (and rightfully so), necessitating the country to adjust its long-term objectives. The age of coal-powered generation is ending, and while complete reliance on only a select few technologies is undoubtedly not advisable, green technology is the future. There has been significant activity in managing the demand side this year. Many South African households and businesses are moving to solar rooftop installations. Eskom has recently released statistics indicating that the country’s installed solar rooftop PV capacity has increased from ~1 GW in March 2022 to 4.4 GW in June 2023, representing a growth rate of 349%. It has allowed Eskom to lower loadshedding stages and provided it with crucial time to conduct maintenance on its ailing coal-power fleet and restore its pumped hydro and diesel storage. The increase in solar rooftop installation is expected to grow substantially over the next five years as municipalities will begin implementing feed-in tariffs for all small-scale embedded generation systems (SSEG). There are encouraging signs pointing towards a brighter future. The nation's ability to confront and address the issues that led to this dilemma has spurred a shift towards positive change, with the private sector as eager as ever to invest in renewable energy technologies. The dramatic increase in solar rooftop installations has emerged as a game-changer, empowering households and businesses to contribute to the energy supply and alleviate pressure on the grid. This transition to renewable energy reduces reliance on traditional coal-powered generation, enhances energy security, and paves the way for a more sustainable future. As South Africa embraces green technology and fosters a culture of energy conservation, it stands poised to overcome the loadshedding challenges. The journey ahead might be demanding, but the nation's determination to transform its energy landscape offers a beacon of hope for a resilient and vibrant future; it is evident that the momentum is building.
AFRICA TREND: Broadening Internet Access
Data is the main form of access for most Africans using the Internet. However, the cost of mobile data varies significantly across the continent. On average, one gigabyte of mobile internet bought in Sub-Saharan Africa during 2022 would cost the equivalent of US$4.5. However, in Northern Africa, the price for mobile data was far lower, at US$1.1 on average. African prices across the board are still cheaper than the United States, which has an average cost of US$5.6 due to an oligopoly market structure and regional infrastructure monopolies.
Despite mobile data costs, internet penetration in Africa is growing rapidly. Southern Africa now sees a 70.1% Internet penetration rate, which is the highest in Africa and above the global average of 64.4%. This is due to multiple factors, including the relatively high levels of economic development in the region and the presence of strong telecommunications networks. Over 530 million people in Africa are estimated to be connected to the internet via mobile as of 2022. The coverage gap has decreased on the continent but remains the highest worldwide. Growth is being driven by the availability of affordable smartphones and the adoption of social media and other online services. As more people connect to the Internet the costs come down through economies of scale. The growth of internet penetration in Africa is having a positive impact on the continent's development. The Internet is helping to improve access to education, healthcare, and other essential services. It is also helping to create new jobs and boost economic growth. By 2030, the continent could achieve rough parity with the rest of the world when three-quarters of Africans are projected to become internet users with huge economic upside as Mobile technologies alone already account for 1.7 million jobs and contribute US$144 billion to the continent’s economy or roughly 8.5% of GDP.
PODCAST: Improving access to the internet and digital solutions and the potential for African Intelligence
🎧LISTEN: Improving access to the internet and digital solutions and the potential for African Intelligence, a discussion with our President & Group CEO, Hardy Pemhiwa, and Frost & Sullivan Africa’s CEO, Hendrik Malan is now available on all major podcast platforms!
Part of our new podcast series, Cassava Tech Talks, powered by Connecting Africa, this episode explores the urgency of addressing the digital disparities in Africa and emphasises the importance of equitable internet connectivity for education, economic opportunities, healthcare, and social inclusion.
EXPERT INSIGHT: Price, People and Power in Africa's Technology Market
Africa's technology market, burgeoning with potential and innovation, is deeply influenced by three pivotal factors: Price, People and Power.
Learn more as Frost & Sullivan Africa's Consultant Sisonke Mgwebi discusses how they impact the trajectory of Africa's technology market: https://lnkd.in/dVtURy6V.
UPCOMING EVENT: Hydrogen-Africa 2023
All roads lead to The Hydrogen-Africa Conference and EXPO next week from 28th-29th September 2023, at the Emperors Palace in Johannesburg.
There is still time to get your ticket and be part of the discussions!
➡ Delegate Registration link: https://lnkd.in/dZVUhCgm
Email: marketing@hydrogen-africa.com
Contact: +27 (0) 65 982 8810
UPCOMING EVENT: African Energy Week 2023
This year's event returns bigger and better than ever before, serving as the official meeting place for Africa’s energy elite. At the forefront of the African energy industry, AEC African Energy Week promotes Africa's role in global energy matters, centered around African-led dialogue and decision-making. Covering the entire energy sector and value chain, AEW represents the only conference on the continent representative of the entire sector.
Join us next month 16-20 October at the CTICC in Cape Town, South Africa, and experience Africa's booming energy markets.
➡ Click here to register: https://lnkd.in/d9y9Z2Tv
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
