Seeds of Opportunity: The African Growth Series
November 2022 | Issue 3
In this week's issue, you will learn more about:
- Think Tank: Pockets of Excellence in Africa's Logistics Journey
- REPORT LAUNCH: Showcasing Africa’s Investable Infrastructure Opportunities
- Green Hydrogen Projects in Africa
- Pargo aces last-mile deliveries amid township boom
- Mobile Technology to Improve Maternal Care
- Africa: Innovation in Climate-Related Stressors
Think Tank: Pockets of Excellence in Africa's Logistics Journey
Join Craig Parker, Research Director at Frost & Sullivan Africa as he leads the discussion ''Pockets of Excellence in Africa's Logistics Journey'' at 15h00 SAST on Thursday 17 November alongside Lars Veul (Co-founder, Pargo), Friedel Spies (Business Development Director, Imperial) and Hendrik Malan (Africa CEO, Frost & Sullivan Africa).
Date: Thursday, 17 November 2022
Time: 15h00 SAST
Registration Link: https://www.brighttalk.com/webcast/5562/565051
Incase you are unable to attend the discussion, a recording of the Think Tank will be available, and can be accessed using the above link.
REPORT LAUNCH: Showcasing Africa’s Investable Infrastructure Opportunities
Frost & Sullivan Africa is very excited to announce the launch of the ‘Showcasing Africa’s Investable Infrastructure Opportunities’ report. The report is part of the partnership with Africa investor and the African Green Infrastructure Investment Bank (AfGIIB) at this year's COP27 at #sharmelsheikh, Egypt from 6 November 2022 to 18 November 2022. It addresses one of the fundamental concerns of investors in Africa – is there a big enough pipeline of bankable infrastructure opportunities on the continent? The report summarises the database of ongoing, committed, and tentative infrastructure projects across Africa. It details key trends and delves into the energy and sustainability sectors as opportunities for investment. This will be the first of three reports released over the next 9 months updating investment opportunities and focussing on specific sectors.
To obtain a free copy of the report, please send a direct request to rebecca.mabika@frost.com.
Green Hydrogen Projects in Africa
Africa has a massive potential to produce green hydrogen. Several low-carbon hydrogen projects are underway or under discussion in Egypt, Mauritania, Morocco, Namibia and South Africa, among others. Clean hydrogen costs can fall faster than expected if scaled up with the proper regulatory framework. For renewable hydrogen, the most significant driver is a quicker decline in renewables costs than previously expected, driven by at-scale deployment and low financing costs. The most substantial cost reductions are expected in locations with exceptionally high renewable potential, such as Australia, Chile, North Africa and the Middle East. The African continent has the potential to produce 5,000 megatons of hydrogen per year at less than US$ 2 per kilogram, cheaper than any other region in the world. There are currently 20 low-carbon hydrogen production projects in Africa. Ten of these projects are in Southern Africa, six are in South Africa, four are in Namibia, and the remaining ten are in North Africa (five in Egypt, three in Morocco and two in Mauritania). Of these 20 projects, more than 45% (9 Projects) are in the feasibility stage, and eight projects have been announced. This brings the total tentative projects to 17 or 85%, reflecting Africa's current infrastructure financing trend, with most of its projects getting stuck in the tentative stages. The most significant projects from a capacity perspective are Namibia’s Hyphen Hydrogen Energy 3 GW electrolysis project and Mauritania’s Project Nour 10 GW electrolysis project aimed at the servicing export market. These projects have not yet been given a production operation date. Most of the remaining projects are aimed to begin production within the decade and are poled to produce ammonia and hydrogen for exports.
Pargo aces last-mile deliveries amid township boom
As smartphone and internet technologies have become increasingly more accessible in Africa, Africa is likely to be the next hotbed for internet-based businesses. In 2022, Africa’s e-commerce industry is estimated to produce USD 33.3 billion in revenue. By 2025 the industry is forecasted to reach an annual revenue of USD 46,1 billion on the back of a yearly increase of 9%.
Growth in this industry is further driven by millennials and Gen Z’s, where Gen Z’s represent a group with significant buying power. In South Africa, recent research has indicated that the e-commerce boom in the country is no longer reserved for suburbs but also for townships. Here, millennials and Gen Z’s are subscribing to online shopping, driving the online activity in these areas. Pargo, a smart logistics start-up that simplifies online delivery, has solved many challenges associated with last-mile logistics, particularly in townships. Several online retailers have struggled to break into these markets due to security and inefficiencies in geo-location apps. However, Pargo has identified several ways to solve these logistical challenges in townships with technological advancements. These include using click-and-collect services, building trust, researching an area, free delivery and selling on social media.
Pargo CEO and Co-Founder Lars Veul discusses this and more in a Think Tank hosted by Frost & Sullivan on the 17th of November.
This Think Tank will discuss the advancements in Africa’s logistics industry and how these can be a catalyst for growth throughout the continent.
Mobile Technology to Improve Maternal Care
Sub-Saharan African countries collectively hold 70% of the global maternal mortality rates (MMR) because of under-resourced healthcare facilities, few skilled healthcare workers, unequal service delivery and low access to maternal health education. Somalia has the 6th highest maternal mortality rate worldwide, with one of every twelve new mothers dying because of pregnancy-related complications. Unfortunately, most of these complications are easily curable, avoidable, or manageable. 70% of the Somalian population live outside urban areas with little to no access to healthcare facilities and pregnancies will increase by 25% over the next three decades. Improving and increasing the use of mobile phone technology is crucial to meet this rising demand for remote healthcare services and Ramla Jamac’s startup, MobileUurka, is rising to the opportunity. They built a user-friendly app for communication, education, and health-tracking system. The app is for pregnant mothers in poorer areas and villages to give them access to simple routine checks and information on local midwives and healthcare facilities, along with tools to track and educate women on maternal healthcare. Rwanda is another country announcing plans to further invest in high-impact digital interventions, such as clinical decision support platforms, portable ultrasounds, e-learning and mentoring platforms, and safe delivery apps.
Africa: Innovation in Climate-Related Stressors
The newly founded GSMA Innovation Fund for Climate Resilience and Adaptation has selected 8 African start-ups, out of 524 applications, to receive financial backing. The goal of the fund is to financially support ventures that have the capacity to make a positive contribution to low-income and vulnerable communities and increase their ability to adapt to climate-related stresses. This is particularly topical in light of the Climate Change Conference (COP27) which was hosted in Egypt last week. Each African start-up selected introduces innovative means through which climate change may be managed through technology, ranging from CoAmana (a Nigerian start-up that functions as a digital marketplace for farmers to access drought-resistant seeds) to Simusolar (founded in Tanzania and functions to sustain fisheries through IoT-enabled productivity and tracking equipment). Enabling the most vulnerable to adapt to environmental change is vital, especially as these communities are the most susceptible to the climate crisis. While the landslide of African start-ups selected for funding is a direct reflection of the innovation in the continent, it also speaks to the growth potential and value of start-ups founded in Africa. For example, in 2021 alone, start-ups founded in Nigeria, Egypt, and Kenya were able to secure USD14.6 million in early-stage funding.
To find out more about opportunities in Africa, please contact Lynne Martin.
