FOREWORD Journal of African Business A unique guide to business and investment in Africa. Welcome to The Journal of African Business. The first issue of the journal was published in 2020 as an annual publication. Since then, the quarterly format has been adopted, giving our team more opportunities to bring readers up-to-date information and opinions and offer our clients increased exposure at specific times of the year, either related to events and conferences or in conjunction with feature articles on specific topics. Every edition carries editorial copy covering the following general topics, with a wide range of subjects within each broader economic sector: energy; mining and exploration; trade; finance; technology and tourism. In addition to this, special features on topical matters will be published THE JOURNAL OF AFRICAN BUSINESS JAN / FEB / MAR 2023 AFRICAN MINING IN THE ESG ERA Investing in the Energy Transition, ESG and the Economies A NEW ENERGY BANK FOR AFRICAN OIL AND GAS WHAT DOES THE AFCFTA MEAN FOR IP? COUNTRY PROFILES: ANGOLA & MAURITIUS MITIGATING THE GLOBAL LOGISTICS CRUNCH Diversification is the way to go for African business THE WINDS OF ENERGY CHANGE ARE BLOWING IN AFRICA THE CASE FOR CAPTIVE POWER Aggreko’s MAX SCHIFF lays out the argument for captive power as an energy solution in many and varied African contexts periodically, along with country profiles. The positive reception accorded the first issues of The Journal of African Business was encouraging and we are optimistic that this publication and future issues will continue to meet the need for timely and relevant information in an exciting time for African business. In this edition, the in-depth interview with Aggreko Head of Sales, Southern East Africa, Max Schiff, makes clear how important captive power is for the future viability of a wide variety of projects in Africa. As Schiff points out, the extractives industry has long been a leader in the application of captive power, given the remote location of many mining operations, but the flexibility and ESG advantages that captive power using renewables offers is making it an ever-more attractive option for many different sectors. The two profiled countries in this issue are Angola and Mauritius. FTI Consulting has done a deep-dive into the challenges facing the African mining sector in the era of enhanced environmental, social and governance reporting (ESG), the report on which is published here. Another article notes that Afreximbank and the African Petroleum Producers Organization (APPO) have signed a memorandum of understanding (MoU) for the creation of a multi-billion-dollar energy bank while renewable energy is the topic of an International Finance Corporation (IFC) study on Africa’s immense onshore wind potential is immense. Two partners at Spoor & Fisher interrogate the Intellectual Property considerations of the African Continental Free Trade Area, while Philip Myburgh, Head of Trade and Africa-China, Business and Commercial Clients for Standard Bank, comments on multiple factors which have caused turmoil in trade and logistics. Finally, two articles examine different aspects of tourism in Africa today. A brand initiative to find the “Best Places in Africa” has been announced and Zimbabwe has a smart new hotel on the banks of the Zambezi River. Global Africa Network is a proudly African company which has been producing region-specific business and investment guides since 2004, including South African Business and Nigerian Business, in addition to its online investment promotion platform www.globalafricanetwork.com JOHN YOUNG Editor, Journal of African Business Email: firstname.lastname@example.org Editor: John Young Publishing director: Chris Whales Managing director: Clive During Online editor: Christoff Scholtz Design: Simon Lewis. Production: Yonella Ncaba Ad sales: Venesia Fowler, Tennyson Naidoo, Sam Oliver, Tahlia Wyngaard, Gavin van der Merwe, Graeme February, Shiko Diala, Gabriel Venter and Vanessa Wallace Administration & accounts: Charlene Steynberg, Kathy Wootton Distribution & circulation manager: Edward MacDonald The Journal of African Business is published by Global Africa Network Media (Pty) Ltd Company Registration No: 2004/004982/07 Directors: Clive During, Chris Whales Physical address: 28 Main Road, Rondebosch 7700 Postal: PO Box 292, Newlands 7701 Tel: +27 21 657 6200 | Email: email@example.com Website: www.globalafricanetwork.com 2 No portion of this book may be reproduced without written consent of the copyright owner. The opinions expressed are not necessarily those of The Journal of African Business magazine, nor the publisher, none of whom accept liability of any nature arising out of, or in connection with, the contents of this publication. The publishers would like to express thanks to those who support this publication by their submission of articles and with their advertising. All rights reserved. Printing: FA Print Member of the Audit Bureau of Circulations
Mauritius gained independence from the United Kingdom in 1968. English is the official language of the legislative body but Creole is the dominant language with Bhojpuri and French accounting for about 10% between them. Just two years before independence, Britain expelled about 2 000 residents of the Chagos archipelago and leased islands to the US for 50 years. A military base was built on the largest island, Diego Garcia. In 2019 the UN International Court of Justice gave a non-binding legal opinion that the islands had not been legally separated and that Britain should end its control. Former President Sir Anerood Jugnauth became Prime Minister for the third time in 2014 but resigned in 2017 to make way for his son Pravind Kumar Jugnauth, the leader of the Militant Socialist Movement party. The president is head of state in a Westminster-type system and the role is largely symbolic. Credit: Dominik Ruhl/Pexels Capital: Port Louis. Other towns/cities: Vacoas-Phoenix, Beau Bassin-Rose Hill, Curepipe, Quatre Bornes. Population: 1.3-million (2022). GDP: -billion (2019). Real GDP per capita: 500 (2020). Currency: Mauritian rupee. Regional Economic Community: Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), Indian Ocean Rim Association. Landmass: 2 040km 2 (all islands), Island of Mauritius 1 864km 2 . Coastline: 177km. Resources: Sugar cane, tea, banana, pulses, potatoes, fish. Main economic sectors: Sugar milling, textiles, tourism, financial services. Other sectors: Mining, chemicals, metal products, transport equipment, machinery. New sectors for investment: Creative sector (film), higher education, ICT, retail, medical tourism. Key projects: Positioning as a hub for the rest of Africa for logistics, re-export and trade. Smart city projects. Chief exports: Clothing, sugar cane, processed fish, molasses, cut flowers. Top export destinations: France, US, UK, South Africa, Madagascar, Italy, Spain. Top import sources: India, China, France, South Africa. Main imports: Chemicals, equipment, foodstuffs, manufactured goods, petroleum products. Infrastructure: Export Processing Zone; Sir Seewoosagur Ramgoolam International Airport at Plaisance about 50km from Port Louis, an airstrip at Plaine Corail on Rodrigues; 2 150km of roads, 98% paved; Port Louis harbour has a container terminal and terminals for sugar, oil, wheat and cement. ICT: Mobile subscriptions per 100 inhabitants: 150 (2020). Internet percentage of population: 65% (2020). ICT Development Index 2017 (ITU) ranking: 1 in Africa, 72 in world. Climate: Maritime subtropical modified by south-east trade winds. Cyclones can occur. Warm, dry winter (May to November); hot, wet, humid summer. A fertile central plateau is surrounded by mountains and the island is ringed by coral reefs. Religion: Hindu, Christian about 30% (majority Roman Catholic), Muslim, other. Global investors are shying away from hydrocarbons, leaving the continent without the investment it needs if it is to capitalise on its resources. Credit: Pixabay Sara Powell, Managing Director, Sustainability and ESG at FTI Consulting United Kingdom Lake Turkana Wind Farm is not only one of Africa’s biggest wind projects, it also, at 0-million, represents the single-largest private investment in Kenya. Kenya Power buys power from the facility, which generates 310MW of energy. Credit: LTWP Please define “captive power”. There are numerous definitions and types of captive power. Most commonly it is defined as “behind the meter” energy, power that is generated at the user site, rather than imported from a wider grid transmission system via an energy meter. The scale, sources and applications of captive power differ significantly. While it could be at a household level, for this discussion we are talking about industrial and commercial applications. This may include manufacturing plants with onsite generation, such as sugar factories using thermal power from burning bagasse to generate steam to drive a turbine, industrial Remote mining destinations such as this one in the Democratic Republic of the Congo must use captive power to support their operations. Credit: Aggreko Pan-African multilateral trade finance institution, the African Export-Import Bank (Afreximbank), has signed a Memorandum of Understanding (MoU) with the African Petroleum Producers Organization (APPO) for the creation of a multi-billion-dollar energy bank. Aimed at scaling up private sector investment in African oil and gas projects, the bank will provide critical financing for new and existing oil and gas projects, as well as energy developments across the entire value chain. Following international oil company divestment and the shift in global investment trends, the bank comes at a particularly critical time for Africa’s energy sector. The MoU was signed by Rene Awambeng, Director and Global Head, Client Relations, Afreximbank, and Dr Omar Farouk, Secretary General of APPO, in the presence of HE João Lourenço, President of the Republic of Angola, APPO ministers and African Energy Chamber (AEC) Executive Chairman NJ Ayuk. While the developed world calls for the end of fossil fuels due to climate change, Africa continues to face the crisis of energy The demand-side of global energy places immense pressure on the mining sector, which is perceived to make a significant contribution to CO2 emissions. Now, mining companies with extensive social and environmental footprints are coming under greater scrutiny by investors, civil society and governments. In Africa, the ESG challenge is the legacy of environmental damage Outside of a limited number of countries, wind turbines have remained a rare sight in Africa. But this is not for lack of potential. In 2020, a study by the International Finance Corporation (IFC) found that continental Africa possesses an onshore wind potential of almost 180 000 TWh/annum, enough to satisfy the entire continent’s electricity needs 250 times over. As the continent continues to seek ways to expand energy access, the adoption of wind as a source of energy is expected to accelerate. To date, only Morocco, Egypt and South Africa have been truly successful in harnessing their wind potential and attracting private capital to set up wind parks. Through its widelyacclaimed Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), South Africa has already commissioned 34 wind farms with an installed capacity of over 3.3GW, according to the country’s IPP Office. And this is far from over. In 2021, the South African Ministry of Mineral Resources and Energy announced 25 successful parks or tea farms with rooftop or ground-mounted solar PV arrays, manufacturing plants with onsite gas power generation using a turbine or reciprocating engine running on piped gas, biogas or even associated petroleum gas (flare gas); or even onsite wind turbines powering mine sites or other commercial or industrial facilities. The list goes on. Is this something that is growing in the world? As with the overall demand for power, there is a growing demand for captive power globally. Depending on the circumstances, demand may be driven by environmental, social and governance poverty. Over 600-million people lack access to electricity and 900-million lack access to clean cooking solutions. This situation has led stakeholders to call for the rapid expansion of the oil and gas sector, recognising the role these resources play in making energy poverty history. Despite these calls, global investors are shying away from hydrocarbons, leaving the continent without the investment it needs if it is to capitalise on its resources. According to the AEC’s Q1 2022 report, “The State of African Energy”, from the peak in 2014 at -billion, capital expenditure in Africa declined to .5-billion in 2020. Despite projected increases to -billion, significant levels of investment are still required and for this to happen, the role of African financial institutions is vital. Catalyst for Africa-directed investment Organisations such as Afreximbank have already made notable progress to drive oil and gas project developments. At the end of 2020, Afreximbank’s total assets and guarantees stood at and irresponsible mining practices, therefore there is a need to create guidelines for the continent. In “Evolution in African Mining: Investing in the Energy Transition, ESG and the Economies”, FTI Consulting addresses the questions and possible responses on growth, costs, risks, capabilities and licences to operate that confront the mining sector in Africa and globally today. Based on research gathered through the FTI Consulting Resilience Barometer 2022, the mining sector seems to be under the most pressure from the current focus on ESG concerns. In fact, nearly half of the companies polled reported that they are under increased pressure, and one-third said that they are falling short on ESG reporting. As a result, while recognising international decarbonisation goals, mining and metals companies understand that their own ESG goals are now under ever-closer scrutiny. “The ESG shift does not mean discarding possible down-side risks. Instead, it is seen as having a business strategy that seeks new opportunities from the transition to sustainability that is underway, understanding that there will be disruptions and unknown risks to manage within this,” says Petrus Marais, Head of FTI Consulting South Africa practice. These factors will impact the sector across four major areas of concern. STAKEHOLDER ENGAGEMENT While one in five companies in the extractives sector stated they were under pressure to strengthen external stakeholder relationships, one in two chief risk officers felt “extreme pressure” to improve external stakeholder relationships. Greater bidders under its REIPPPP Bid Window 5, including 12 wind farms with a total capacity of 1 600MW. Bid Window 6, which was due to allocate a maximum capacity of 1 600MW of wind, with projects ranging from 50MW to 240MW, was doubled in capacity by President Cyril Ramaphosa very soon after its initial announcement, in response to the problems the country has been having with rolling blackouts. Up north, Morocco and Egypt continue to drive wind-energy developments. The latter has an installed wind-generation capacity of almost 1.5GW across 13 wind farms, according to its Ministry of Energy. It now expects to commission another 2GW by 2025 with an additional 14 wind farms. On the other side, Egypt has seen fewer but bigger projects. Its four wind farms have a current installed capacity of 1.6GW. The most recent one, West Bakr, was commissioned by Lekela Power in November 2021. .5-billion, with shareholder funds amounting to .4-billion. Other institutions, including the African Development Bank with an active portfolio of projects upwards of -billion, also represent critical providers across the African energy landscape. However, more needs to be done, and if large-scale discoveries such as those made in Namibia and Ivory Coast are to be sufficiently developed, more capital needs to be made available. Stepping into this picture, the Afreximbank- APPO MoU aims to alleviate these challenges, ensuring the provision of capital for Africa’s upcoming oil and gas projects. Based in Africa, the bank will operate as an independent entity, regulated and led by experienced professionals who know and understand Africa’s energy needs. The proposed bank will not be a substitute for private investment, however, but rather will serve as a catalyst for Africa-directed investment. NJ Ayuk, Executive Chairman of the AEC, says: “The African Energy Chamber has been pushing for the creation of an African Energy Bank, one that is African-based and Africa-focused, and I am proud to announce that the Afreximbank and APPO have taken the first steps towards its creation. The bank will be critical for Africa’s energy sector, serving as a catalyst – not a substitute – for private investment in African energy. This is a practical strategy for prosperity and a pragmatic vision that must be embraced by all who want to make energy poverty history and fight climate change. “Why should our pension funds go to European banks who say they will not finance Africans and call us risky? We need to use that money to finance oil and gas,” states Ayuk. The proposed African Energy Bank will operate in the same way as the APPO-created Africa Energy Investment Corporation – a developmental financial institution created to channel resources towards the development of Africa’s energy sector. In addition to ensuring capital is made available for African oil and gas, the bank will serve as a vessel for mobilising African-sourced finance. Rather than utilising international banks for pension funds, the bank will serve as an investment corporation that will channel these funds into African projects. This will ensure high returns of investment as well as the development of Africa’s energy sector. The benefits will be two-fold: the funds will help drive oil and gas development while the oil and gas projects will drive socio-economic growth through the increase in access to energy. Accordingly, the role this bank will play is pivotal. collaboration with external stakeholders, including customers and the supply chain, will be essential in embedding the demands of a circular economy in the mining lifecycle to reduce its carbon footprint and ensure improved materials footprints. ESG The mining sector finds itself at a complex juncture requiring transition management strategies that acknowledge the increased demand for raw materials driven by the mineralintensive clean energy technology and a more aggressive stance on curbing their environmental impact. The global strategy along the decarbonisation and ESG compliance route is complex and multifaceted and it will alter the mining sector, while also providing opportunities and challenges. CIRCULAR ECONOMY The mining sector is aware of the complex environmental risks – primarily from mining waste – that accompany its operations, and the option of displacing those from one environment to another is no longer tenable. Implementing circular economy thinking, such as focusing “on getting more from less” and adhering to waste-reducing principles – reduce, reuse, recycle – will improve DEVELOPMENT AND MULTILATERAL FINANCE Across the rest of the continent, multilateral and development finance institutions (DFIs) have played a key role in supporting the emergence of the wind sector. West Africa has increasingly harnessed its wind potential with facilities commissioned in Cabo Verde (Cabeólica, 2011), Senegal (Taiba Ndiaye, 2019) and Mauritania (Boulenouar, 2020). The projects received significant backing from the likes of the Africa Finance Corporation (AFC), the US International Development Finance Corporation (DFC) and the Arab Fund for Economic and Social Development (AFESD). They have successfully laid the ground for more projects to follow. In December 2021, the DFC notably provided funding for a feasibility study to expand Senegal’s 158.7MW Taiba Ndiaye Wind Farm by another 100MW. East Africa is also joining the game, led by Kenya. After the expansion of the Ngong facility in 2014, the country commissioned the 310MW Lake Turkana Wind Farm in 2017 and the 100MW Kipeto Wind Farm in 2021. The African Development Bank (AfDB) was the mandated lead arranger on Lake Turkana’s debt package and managed to attract several leading European DFIs to finance the project. The Kipeto project was mostly funded by the DFC. After its success in Cabo Verde, the AFC has moved east where it is the lead developer on Djibouti’s Red Sea Wind Power Project in Ghoubet. The 60MW facility is nearing completion and is the country’s very first independent power producer (IPP). AN IDEAL CHOICE TO CUT CARBON EMISSIONS More recently, natural resources and extractive industries have provided an additional driver of wind-energy adoption in Africa. Publicly-listed oil and gas and mining companies seeking to decarbonise their portfolio and cut carbon emissions across their operations are looking at wind projects. In March 2022, Savannah Energy executed an agreement with the Ministry of Petroleum, Energy and Renewable Energies of (ESG) targets, by the high costs of implementing peak-utility tariffs, by intermittency or fluctuations on national grids, or even by the total absence of a grid in many areas of the world. Where captive power can be cleaner, cheaper and/or more reliable than grid supply, then there is motivation to assess the return on investment (ROI) by supplementing or substituting the grid with a captive-power source. The extractives industry, such as the mining of minerals or oil and gas, often operates in unconnected regions. Yet the industry requires stable power to avoid loss of production of high-value materials which cover the related high operating and capital costs of such industries. In such cases, captive power is the only option. However, the question remains, how to secure reliable power and avoid intermittency while achieving maximum renewable penetration and remaining cost-effective? This is a question driving significant investment in the development of control systems and battery storage required to improve the tradeoff between carbon reduction via renewable penetration and CREDIT: Emmaus Studio on Unsplash the sector’s sustainability and long-term profits. Such practices would go a long way towards satisfying stakeholder concerns around ESG compliance. SOCIETAL IMPACT OF MINING There is far more at stake in the mining sector than increasing exploration costs. The cost of ignoring the S in ESG can be massive. The complex ESG environment means businesses are under the scrutiny of social activists, shareholders, regulators, consumers and the media. Crucial to this success will be the management and monitoring of carbon and wider materials footprint by accurately quantifying, measuring and communicating the data collection. Research shows that 90% of the mining sector sees the need to align business strategy to social purposes. In addition, 90% also saw the transition to a more sustainable business model opening the doors to new opportunities. As Sara Powell, Managing Director, Sustainability and ESG at FTI Consulting United Kingdom, says, “Organisations – across every industry – that ignore the acceleration towards net-zero will not only be highly vulnerable to climate risks but will also be ill-prepared to capture far greater stakeholder value by acting on transition-led opportunities.” The full report can be seen at: www.fticonsulting.com the Republic of Niger to develop the country’s first wind farm. Savannah Energy, operator of some of the most prolific oil blocks in Niger, is planning to construct and operate the 250MW facility in the Tahoua Region. The wind farm will be structured as an IPP and is currently in feasibility study. It is expected to be sanctioned in 2023 for a potential commissioning in 2025. In Zambia, First Quantum Minerals (FQM) entered into a new partnership with Chariot and Total Eren in 2022 to develop 430MW of solar and wind power for its mining operations. The company operates Africa’s biggest copper mine by production in Zambia and it seeks to reduce its carbon footprint by 30% by 2025. In South Africa, Anglo American is embarking on an even bigger project with EDF Renewables. Both companies signed a Memorandum of Understanding in March 2022 to work reliability. This is an endeavour that Aggreko has invested in significantly in recent years, since it acquired the battery-storage provider Younicos in 2017. In much of the developing world, grid stability and electrification are lagging behind the developed world. Here, value drivers for captive power are more pronounced. Higher costs and less reliable power encourage captive power installations in industries that are less power intensive and that face lower value production losses due to power outages whether they are connected to a national grid or not. In the developed world, policies such as net metering provide financial motivation for commercial and domestic entities to install captive power solutions as excess power is sold back to the grid via smart meters, thereby allowing revenue from curtailed power and improving the ROI of the initial investment. In other geographies, there are regulatory caps and barriers placed on captive power installations. This is especially true for grid-connected industrial entities, as state-owned utilities attempt to prevent loss of market to captive solutions. South Africa experienced the opposite of this in 2021 when President Cyril Ramaphosa announced that the regulatory cap on selfgeneration in South Africa would increase from 10MW to 100MW, thereby paving the way for increased competition from captive power installations. This was done in response to an ageing centralised generation infrastructure dependent on coal power assets that are not to be overhauled, for obvious environmental reasons. And in other parts of Africa? Africa presents an interesting scenario. As mentioned, cost, instability and access metrics trail much of the world and act to encourage investment in captive power due to a higher comparative ROI. This is not only driven by large off-grid extractive off-takers in the mining and oil and gas industry, but a broader range of factors. The extractives industry has been a leader in the captive power space for decades due to its often-remote locations. Capital investment in transmission and distribution infrastructure to connect to a high-cost and unreliable grid supply often does not make sense from a returns perspective. This is especially true About FTI Consulting FTI Consulting, Inc. is a global business advisory firm dedicated to helping organisations manage change, mitigate risk and resolve disputes: financial, legal, operational, political and regulatory, reputational and transactional. With more than 6 900 employees located in 30 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The company generated .78-billion in revenues during fiscal year 2021. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalised and independently managed. For more information, visit www. fticonsulting.com and connect on Twitter (@FTIConsulting), Facebook and LinkedIn. Reporting in the mining sector is becoming ever-more complex. Credit: Thungela Resources Akhfenir Wind Farm is owned by Nareva, a subsidiary of Morocco’s National Investment Company. Credit: Eurogrues Maroc. West Bakr Wind Farm, Egypt. Credit: Lekela Max Schiff, Head of Sales, Southern East Africa, Aggreko CONTENTS MAURITIUS The financial services sector is vibrant and growing. COUNTRY PROFILE Contents The Journal of African Business 2 4 6 10 14 16 19 22 24 26 28 29 30 32 FOREWORD From the editor’s desk. NEWS FROM THE CONTINENT Recent investments, expansions and milestones. THE CASE FOR CAPTIVE POWER IN AFRICA Aggreko’s Max Schiff outlines how various captive power options can mitigate disruptions and how the company is investing heavily in battery-storage solutions. AFRICAN MINING IN THE ESG ERA FTI Consulting has done a deep-dive into the challenges facing the African mining sector in the era of enhanced environmental, social and governance reporting (ESG). A NEW ENERGY BANK AIMS TO INCREASE PRIVATE INVESTMENT IN AFRICAN OIL AND GAS PROJECTS Afreximbank and the African Petroleum Producers Organization (APPO) have signed a memorandum of understanding (MoU) for the creation of a multi-billion-dollar energy bank. THE WINDS OF ENERGY CHANGE ARE BLOWING IN AFRICA An International Finance Corporation (IFC) study has found that Africa’s onshore wind potential is immense. Green Energy Africa Summit records how that potential is being realised. HOW SOUTH AFRICA CAN POWER GREEN INVESTMENTS AND END LOADSHEDDING With South Africa’s energy crisis showing no sign of slowing down, Wesgro CEO Wrenelle Stander comments on the urgent need to accelerate green investments. WHAT ARE THE INTELLECTUAL PROPERTY CONSIDERATIONS OF THE AFCFTA? Two experts examine the intellectual property implications of the AfCFTA agreement. AFRICAN BUSINESSES SHOULD DIVERSIFY SUPPLY CHAINS TO MITIGATE THE GLOBAL LOGISTICS CRUNCH Philip Myburgh comments on multiple factors which have caused turmoil in trade and logistics. “BEST PLACES IN AFRICA” WILL SHINE A SPOTLIGHT ON AFRICAN BRANDS A new initiative to promote African brands in tourism, investment and citizen mobilisation. VICTORIA FALLS HAS A NEW LUXURY HOTEL The Palm River Hotel has opened on the banks of the Zambezi River. AFRICAN EVENTS Upcoming business and trade events in South Africa. COUNTRY PROFILE: ANGOLA A major oil producer is trying to diversify its economy COUNTRY PROFILE: MAURITIUS The financial services sector is vibrant and growing M Photo: Pixabay 3 31 Photo: Pixabay A NEW ENERGY BANK AIMS TO INCREASE PRIVATE INVESTMENT IN AFRICAN OIL AND GAS PROJECTS Afreximbank and the African Petroleum Producers Organization (APPO) have signed a P memorandum of understanding (MoU) for the creation of a multi-billion-dollar energy bank. Tackling energy poverty in Africa will be at the heart of the bank’s mission. AFRICAN MINING IN THE ESG ERA FTI Consulting has done a deep-dive into the challenges facing the African mining sector in the era of enhanced environmental, social and governance reporting (ESG). What follows is a summary of the main points of the 14-page study, “Evolution in African Mining. Investing in the Energy transition, ESG, and the Economies”. THE WINDS OF ENERGY CHANGE ARE BLOWING IN AFRICA T As the continent 18 Diversification of the continent’s wind energy sector is expected in response to the rollout of new projects in new regions. An International Finance Corporation (IFC) study has found that Africa’s onshore wind potential is immense. The organisers of the annual Green Energy Africa Summit compiled this article to record how that potential is being realised. continues to seek ways to expand energy access, the adoption of wind as a source of energy is expected to accelerate. T THE CASE FOR CAPTIVE POWER IN AFRICA Industry and mining require a stable supply of power to operate optimally, a requirement which cannot always be guaranteed in Africa. Aggreko’s Max Schiff outlines how various captive power options can mitigate disruptions and how the company is investing heavily in battery-storage solutions to assist in creating hybrid solutions which combine grid and renewable sources. 24 12 18 12 19 13 8 19 ENERGY FINANCE The proposed African Energy Bank will operate in the same way as the APPO-created Africa Energy Investment Corporation – a developmental financial institution created to channel resources towards the development of Africa’s energy sector. 25 13 9 ESG IN POWER MINING WIND POWER Publicly-listed oil and gas and mining companies seeking to decarbonise their portfolio and cut carbon emissions across their operations are looking at wind projects ENERGY How to secure reliable power and avoid intermittency while achieving maximum renewable penetration and remaining cost-effective?