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South African Business 2021

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Welcome to the ninth edition of the South African Business journal. First published in 2011, the publication has established itself as the premier business and investment guide to South Africa. This issue has a focus on economic recovery plans which have been put in place to tackle the challenges thrown up by the global Covid-19 pandemic. National government’s focus on infrastructure and the use of Special Economic Zones is highlighted, together with a feature on the nascent maritime economy. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed online at www.globalafricanetwork.com.

OVERVIEW Energy Solar

OVERVIEW Energy Solar and wind projects are regularly coming onstream. Credit: Abengoa South Africa’s acclaimed Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) attracted about R200-billion in committed investments, mostly in solar and wind power, in just five years. The early rounds of the independent power producers’ programme continue to produce regular dividends. In October 2020, another wind farm started commercial operations. Located about 80km north-east of Ceres in the Witzenberg Local Municipality, the Paardekraal East Wind Farm is in the Western Cape. The 110MW project was constructed by the Concor and Conco Consortium, Siemens Gamesa Renewable Energy supplied and installed the wind turbines, the towers were built by GRI in Atlantis and Mainstream Asset Management South Africa will manage the operations. According to the Department of Energy, the REIPPPP by 2016 had created more than 30 000 jobs and benefited local community development to the tune of R256-million. Figures released by the South African Wind Energy Association (SAWEA) showed shareholding for local communities reached an estimated net income of R29.2-billion over the lifespan of the projects. Some 14 000 new jobs are expected to be created, mostly in rural areas, and more than R30-billion has already been spent on Black Economic Empowerment (BEE) in the construction phase. The majority of wind projects have been allocated to the Eastern SECTOR INSIGHT Training for a renewable future is a new priority. Cape, but approximately 60% of the solar projects so far allocated in the programme have been in the Northern Cape, the nation’s sunniest province. Gas is also in the mix. The Department of Energy is targeting the procurement of 3 126MW and intends spending R64-billion on port, pipeline, generation and transmission infrastructure at three key ports, Richards Bay, Coega and Saldanha Bay. The most popular method relies on solar panels, namely solar photovoltaic (PV). The other form of solar power (concentrated solar power, CSP) is effective and some projects SOUTH AFRICAN BUSINESS 2021 56

INTERVIEW Liquefied natural gas can help South Africa reach its decarbonisation goals INTERVIEW INTERVIEW Liquefie help SoS decarbo Aldworth Mbalati, CEO of DNG Energy, reveals how his company will offer a cleaner Aldworth Aldworth Mbalati fuel stop for ships that travel along the South African coastline. fuel fuel stop stop for ships for s What are the main advantages of liquefied natural gas (LNG)? Liquefied natural gas is a cleaner and cheaper fuel alternative for the energy market. The environmental, social and economic benefits will help the country meet its targets in reducing greenhouse gas emissions, drive economic growth and improve the lives of its citizens. Aldworth Mbalati, CEO BIOGRAPHY Aldworth Mbalati started his entrepreneurial journey as owner and CEO of Vutomi Properties in 2002. In 2005 he was involved at Bayethe Investment Company, a company investing in coal and other energy assets. Five years later, he expanded into oil and gas exploration, production and midstream activities such as gas-to-power as the major shareholder and CEO of African International Energy, Africa. He started DNG Energy in 2013. He obtained rights and developed an LNG import terminal in Mozambique. Transnet National Ports Authority recently gave permission for you to begin bunkering operations: how significant is that? The promulgation of regulations by the International Maritime Organisation (IMO) in January 2020 requiring all ships to use fuel that has sulphur content of no more than 0.5% has put LNG to the fore as a solution for decarbonising the marine industry. Finalisation of a bunkering licence for DNG Energy at Coega gives us a go-ahead to begin our integrated gas infrastructure for on-shore and off-shore LNG logistics. We are building the first floating storage unit (FSU) Aldworth for Africa Aldworth Mbalati, C and the largest in the southern hemisphere. Our position at Coega gives us an opportunity to optimise trade for the global marine industry by offering a cleaner fuel stop for ships that pass through Algoa Bay, estimated at 57 000 ships every year. BIOGRAPHY What will be the impact of DNG Energy’s bunkering activities? We support government’s strategy to develop the Coega Industrial Development Zone as a gas hub. Our operations will reduce the Aldworth energy Aldworth Mbalati Mbalati start costs of doing business, expand the marine economy by creating trepreneurial trepreneurial jobs, journey journe as developing skills and will also move South Africa closer to meeting CEO of CEO its Vutomi of Vutomi Properti climate change objectives. In 2005 In 2005 he was he involved was Investment Investment Company, a Who do you see as your customers in the LNG space? investing investing coal in and coal ot a Our customers are global and local shipping companies, assets. intensive assets. Five years Five years later, la he energy users, logistics companies, industrial and commercial operations, into oil into and oil gas and explor gas e the taxi industry and households. duction duction and midstream and such such as gas-to-power as What are the strengths of your team? shareholder shareholder and and CEO DNG Energy’s team has unity in vision, values and shared culture. International International The Energy, Energy Afric working environment is steeped in a culture of hard workers ed who DNG ed are DNG Energy Energy in 2013. in 20 H focused on the value proposition needed by the market. To those rights who rights and developed and develope an say it cannot be done, DNG Energy asks, “Why not?” ■ terminal terminal Mozambique in SOUTH AFRICAN BUSINESS 2021 57 SOUTH AFRICAN BUSINESS 2021 36 SOUTH SOUTH AFRICAN AFRICAN BUSINB

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