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The term “carbon offset” has become increasingly prevalent in discussions around climate change and environmental sustainability. Despite its growing importance, the concept can be a bit complex to understand. This article aims to clarify the meaning of carbon offset, delve into the different types of projects that generate these offsets, and introduce you to various …
In the global effort to combat climate change, carbon credits have emerged as a powerful tool for offsetting greenhouse gas emissions. But what exactly are carbon credits, and how do they work? This article aims to demystify the concept and provide insights into how carbon credits can be an effective part of sustainability efforts for …
By Jason Mitchell
Africa's vast natural gas reserves are key to bringing energy to Africa's poorest countries, to a solid industrialisation process throughout the region and to significant poverty reduction.
The region is home to 33 of the world's 46 least-developed countries (LDCs) with an average income per head of less than $1,018 a year. The continent's poorest countries must expand at 6-7% a year if poverty is to be reduced in a big way and if the life chances of hundreds of millions of people are to be improved. To achieve this goal, these countries require abundant and cheap energy. Luckily, for many African states, the answer lies on their own doorstep — natural gas. Gas has remained a niche fuel in sub-Saharan Africa — contributing only 5% of the total energy mix against a global average of 20-25% — but its potential is enormous.
A new vision for Africa is required — a criss-crossing network of natural gas pipelines that brings energy to all corners of the region. The continent's contribution to global greenhouse gas emissions is tiny and will only become slightly bigger if the region's natural gas reserves are exploited. There is also a massive opportunity to wean poor Africans away from the use of biomass fuel and to help protect the region's forests through the rollout of small, liquified petroleum gas (LPG) stoves. Climate change is an issue in Africa but poverty reduction is a bigger one. Poverty is the biggest killer in Africa today.
It's very hard for Europeans and North Americans to imagine what it's like to live on under $1,018 a year, to not have readily available electricity, to not have a refrigerator or a washing machine, to not have a car, to not have a lawnmower, to not be able to fly from one country to another cheaply, to not have electricity in the school or the workplace and to have to use firewood or charcoal for cooking purposes. Fossil fuels have been at the heart of the Industrial Revolution that has brought prosperity and better living standards to the developed world. People in the First World must be very careful if they decide to deny Africans the same chance to prosper.
Africa has the lowest energy use per capita in the world — the average electricity use of a sub-Saharan African resident is lower than that of a household fridge in the United States. Average consumption per person in sub-Saharan Africa, excluding South Africa, is a mere 185 kilowatt-hours (kWh) a year, compared with about 6,500kWh in Europe and 12,700kWh in the US. Every year San Antonio, Texas, with a population of 1.5m people, uses as much electricity as the whole of Nigeria, with 203m people. Golden, Colorado, a small town with only 19,000 people, uses as much electricity as Chad, a country with 16m people.
The UN's Sustainable Development Goal Seven aims to “ensure access to affordable, reliable, sustainable and modern energy for all” by the year 2030. That's a tall order. In 2019, 917m people in Africa (around 80% of the region's population) relied on wood, charcoal, kerosene, animal and crop waste or other solid fuels to cook their food and heat their homes. The International Energy Agency (IEA) reports that almost 490,000 people die prematurely every year in sub-Saharan Africa from household air pollution-related causes — stemming from the lack of access to clean cooking facilities. Gas is a much cleaner form of cooking than biomass and its use should be encouraged. Biomass burning-power plants emit 300-400% more CO2 than natural gas per unit energy produced. Natural gas emits almost 50% less carbon dioxide than coal.
Africa has one-fifth of the world's population but contributes only 3% to global greenhouse gas emissions. Incredibly, some 48 sub-Saharan African countries, excluding South Africa, have an estimated share of global emissions of only 0.55%. The fact is that many African states are already at net zero. If the continent were to use an additional 90bn cu m of natural gas per year — or 50% more than today — the resulting emissions would only raise Africa's cumulative contribution to global carbon emissions to 3.5% (ten gigatonnes) by the year 2050, according to the IEA. It really is a tiny increase compared to the chance of reducing poverty levels for hundreds of millions of poor people. If Africa is to provide universal electricity access by 2030 it would have to almost double its total generation capacity from around 260gw today to 510gw.
Almost half the continent's 55 countries have proven natural gas reserves. Across the region, natural gas reserves amount to around 17.5trn cubic metres (cu m), making up around 9% of the world's total gas reserves. They are considerable in northern Africa (accounting for 45% of African reserves) and western Africa (32%), in particular. Commercial quantities of natural gas have been found in many African countries.
Previously, only four countries from the region have been major natural gas production hubs: Nigeria (with total gas reserves of 5.8trn cu m), Algeria (4.5trn cu m), Egypt (2.2trn cu m) and Libya (1.5trn cu m). These four accounted for 78% of African gas reserves in 2021 (https://apo-opa.info/48gDBWG), according to the United States Energy Information Administration.
However, seven African countries — Mozambique, Senegal, Tanzania, Mauritania, South Africa, Ethiopia and Morocco — with no history of fossil gas exploitation have now opened up their doors to gas projects. Some 84% of new reserves in the pre-production stage are found in these states — total new reserves amount to 5.1trn cu m. Mozambique has re-production reserves of 2.3trn cu m, Senegal 779bn cu m, Mauritania 575bn cu m, Tanzania 512bn cu m, South Africa 96bn cu m, Ethiopia 42bn cu m and Morocco 39bn cu m.
Furthermore, major untapped reserves have been discovered in Angola, Cameroon, Ghana, Equatorial Guinea, the Republic of the Congo, Kenya and Uganda. A number of these states — including Mozambique, Tanzania, Mauritania and Senegal — are actively marketing natural gas to capitalise on recent discoveries. In fact, the IEA has declared Africa the ‘new frontier' in global oil and gas.
The big four gas-producing countries will continue to dominate gas production in the near term but experts estimate that Mozambique and the other new entrants will contribute more than 50% of the region's gas production by 2038.
Natural gas can be used for electricity generation, industry and domestic use. Crucially, harnessing Africa's gas could provide the baseload power needed to boost Africa's capacity to process its raw materials locally. It could provide enough energy for industrial processes, including steel and cement production and paper and pulp manufacturing. It could be also used to make fertiliser to raise agricultural yields. Renewables, including solar and wind, cannot yet provide enough energy for these purposes.
The huge reserves of gas can play a significant role in the continent's energy transition, as natural gas has a much lower carbon footprint than oil and coal. Critically, natural gas development and renewable power are not mutually exclusive. If Africa were to triple its use of natural gas, the United Nations Economic Commission for Africa (Uneca) estimates that the region would be able to increase its use of renewable energy eight-fold. Reliable forms of energy such as gas can be used to stabilise a grid powered by intermittent sources such as wind and solar. It can play a key role in a ‘just' energy transition.
However, expanding gas supply across Africa would require a whole web of new gas pipelines and that does not come cheap. A lot of the gas from the new projects already under way in Africa is destined for international markets, including the European Union — which have been seeking new sources of energy since the Ukraine crisis — but it is vital that the region's gas reserves are deployed for domestic use, as well. Nigeria, for example, sits on the continent's largest known natural gas reserves but only 55% of the population had access to secure electricity in 2020.
Multilateral financial institutions (MFIs) — many of which are headquartered in the developed world — are now shying away from investing in natural gas projects in Africa because of pressure from a vociferous green lobby. In 2021, 20 countries — including almost all the world's big, rich democracies — pledged to stop almost all financing of new fossil fuel projects internationally by the end of 2022. Furthermore, under the Glasgow Financial Alliance for Net Zero (GFANZ), 450 financial firms across 45 countries, responsible for over $130trn in assets, committed to accelerate the global decarbonisation process. The problem is that most Western governments and financial institutions do not distinguish between coal, oil and gas, and the pressure to stop funding all hydrocarbons has negatively impacted gas projects in Africa in a big way.
Some of the continent's biggest financiers — including the African Development Bank (AfDB) — are finding it increasingly difficult to support gas project developments that require loan syndication and foreign partners. The World Bank is pulling back, too. Local banks cannot finance major gas projects on their own, as they are limited by their capital base. In particular, the fossil fuels divestment campaign is having a big impact on the amount of development and concessional finance available. This kind of finance used to support a number of gas projects for their poverty-reducing and economic development value.
For example, without the guarantees of development finance institutions (DFIs), most of Africa's recent gas-to-power plants would have never been built in the first place. The withdrawal of development finance from downstream gas and gas-to-power projects is a serious cause for concern for Africa's electrification effort and moving the needle on energy access.
Furthermore, there is a glaring double standard — many European countries have increased their use of hydrocarbons (coal as well as gas) since Russia's invasion of Ukraine. They are constructing new fossil fuel pipelines at home. The EU recently classified natural gas a ‘green' fuel, which will allow Europe's projects to be backed by investors committed to environmental, social and governance (ESG) principles. European countries are now looking towards African states for new sources of gas. However, they are not prepared to back new gas projects in Africa that would supply the fuel to the region itself. That smacks of hypocrisy of the worst kind. How can you deny the poorest people in the world the sort of energy that you want to use yourselves?
Lumping all hydrocarbons together is a blunt policy mechanism that is not good from an emissions perspective either. In poorer places, like sub-Saharan Africa, the available alternative to gas is not renewable electricity but rather coal, diesel and, most of all, polluting biomass. In sub-Saharan Africa, demand for biomass fuels is expected to surge by 40% by the year 2040 if ‘business as usual' continues. The burning of biomass is a major contributor to global carbon emissions and charcoal has been a top driver of tropical forest loss during the past two decades, with the greatest footprint in Africa. The continent's carbon sinks need protecting and the irony is that the greater use of gas would achieve that.
Africa is home to 18% of humanity but receives less than 5% of global energy investment. And much of this investment goes on producing oil and gas for export. There must be much more investment in the region for the domestic use of gas. Gas projects could play an absolutely vital role in bringing energy to Africa but obviously the projects require financing. DFIs must think again about their decision to limit investment in new projects in Africa. The financing of a network of gas pipelines throughout Africa would be one of the quickest and surest ways of industrialising the region in a big way and of alleviating poverty on a large scale. Renewables just cannot do that how ever much wishful thinking takes place.
In fact, development institutions should go one step further and consider subsiding a massive roll out of small LPG stoves to millions of poor households in the region. It could be one of the biggest moves in contributing to Africa's decarbonisation effort by arresting the pace of deforestation in the region. LPG is recovered from ‘wet' natural gas (gas with condensable heavy petroleum compounds) by absorption and reaches the domestic consumer in cylinders under relatively low pressures. The widespread adoption of LPG stoves would reduce the amount of pollutants in the air from biomass fuels. Poor households that currently depend on woodfuel for cooking require a cleaner cooking alternative — LPG is one of the solutions.
LPG stoves are also suitable for domestic use in rural settings — a key consideration in Africa where energy poverty is greatest in the countryside. For instance, in 2016, electricity access in urban and rural areas in Nigeria was 86% and 34%, respectively, according to the World Bank.
Africa only needs to look to Asia for examples. In 2006, Indonesia implemented a ‘mega-programme' to induce a large-scale transition from kerosene to LPG stoves in order to reduce government spending on kerosene subsidies. The initiative invested in LPG infrastructure, domestic cylinder production and consumer awareness. By 2012, 93% of the target had been reached and LPG consumption had grown by almost 350%.
In India, LPG access expanded through the early-2000s but it was still not reaching most poor families. To boost access among the poor, the Indian government introduced the Pradhan Mantri Ujjwala Yojana (PMUY) Scheme. Under it, the country's oil marketing companies provide subsidies to reduce the cost of both LPG connections and cylinder refills to women in households classified as below the poverty line. In 2016, the cost of a connection was about Rupees 3,200 ($48) and included the first full cylinder (plus deposit), deposit for a regulator, an LPG stove and administrative fees.
Furthermore, African governments must consider increasing domestic gas allocations from liquified natural gas (LNG) export projects. These are an effective way to ensure that even if developers prioritise lucrative exports over local sales, they must reserve part of their production for the domestic market. Upcoming LNG terminals in sub-Saharan Africa — for example, in Mozambique — now make it compulsory to allocate a specific amount of gas to the domestic market. The availability of domestic gas from export facilities can encourage gas-based industrialisation (for example, in Senegal) or additional gas-to-power capacity (Mozambique, Mauritania and Senegal). In August 2022, for instance, Senegal's Petrosen Trading & Services signed an MoU with Turkey's Çalık Enerji and Japan's Mitsubishi for the pre-feasibility study of a gas-based ammonia and urea manufacturing unit.
It is a huge mistake to lump all hydrocarbons together and for Western environmentalists to argue that no new new fossil fuel projects should happen in Africa whatsoever. Deforestation is one of the biggest issues in Africa today. Poor Africans must be weaned off the use of wood-based fuels. The widespread adoption of small LPG stoves would be one of the surest ways of reducing deforestation. Natural gas could also form the basis for a solid, large-scale industrialisation process in Africa — something that is essential if the region is to achieve the sort of economic growth needed to lift hundreds of millions of people out of poverty.
Distributed by APO Group on behalf of African Energy Chamber.
At the end of the day anyone that submits a press release to MyPR wants to know that their article can and will be found by people searching for relevant and timeous information. No matter how you spin it, Google Search is still the benchmark when it comes to finding information and a top of …
The Africa's Business Heroes (ABH) (www.AfricaBusinessHeroes.org) Prize Competition, a philanthropic program sponsored by the Jack Ma Foundation and Alibaba Philanthropy, now in its fifth year, has announced this year's top 10 finalists following an intense round of semi-finale business pitches and judging held on September 1 and 2 at Norrsken House in Kigali, Rwanda. These 10 entrepreneurs will compete for their share of the final prize of US$1.5 million in grant funding at the competition's Grand Finale scheduled for November 23 and 24.
The top 10 finalists are (in alphabetical order, by country):
The 2023 ABH top 10 entrepreneurs were selected through multiple stages of interviews and evaluation from 27,267 applications across all 54 African nations. They hail from eight African countries, including Benin, Egypt, Ghana, Kenya, Morocco, Nigeria, Rwanda and South Africa. Their start-ups have been drawn from a wide variety of industries, including agriculture, education & training, energy, financial services, healthcare, manufacturing and retail.
The 10 finalists will present their businesses on stage to a panel of inspiring businesspeople at this year's Grand Finale, which will take place in conjunction with a summit and will be the biggest in ABH's history in celebration of the fifth anniversary of the competition. Held offline in Kigali, Rwanda on 23 and 24 November and also partially livestreamed to reach audiences across Africa, the Summit and Grand Finale will be a gathering of a diverse group of African entrepreneurial ecosystem players. The action-packed event will comprise exciting sessions including speeches, workshops, an entrepreneurial showcase and a live pitch competition, among other activities. Register here to secure your seat: https://apo-opa.info/3sJzPoa
“ABH remains committed to uncovering, championing and supporting trailblazing African entrepreneurs who are bringing positive change to their communities. As we reach the fifth anniversary of our 10-year commitment to this initiative, we're excited by the expanding and diverse array of talent among our contenders,” said Jason Pau, Executive Director of International Programs at the Jack Ma Foundation. “With November on the horizon, we wish every of the top 10 finalists the best of luck on their journey, and we encourage the public to join our Summit and Grand Finale, as it promises to be truly special.”
“The ABH competition has shown that African entrepreneurship can emerge as a potent force propelling both social upliftment and economic progress. It is a dynamic stage, spotlighting ingenious start-ups that steer toward solutions, tackling challenges with a resonance that's impactful, competitive, sustainable and additive. I believe that entrepreneurs are carriers of HOPE as they can unlock possibilities that can change the world. I look forward to the Grand Finale, where the top 10 finalists will demonstrate their remarkable business acumen on stage,” said Rene Parker, Cofounder and CEO of RLabs, ABH semi-finale judge (2019 – 2023).
Originally launched in 2019, the ABH Prize Competition is Pan-African, inclusive, sector-agnostic and grassroots-oriented. It aims to identify, support and inspire the next generation of African entrepreneurs who are making a difference in their local communities by working to solve the most pressing problems and building a more sustainable and inclusive economy for the future.
For more information about ABH 2023, please visit: https://apo-opa.info/3qVklx5 and follow ABH on Twitter (https://apo-opa.info/3KY3OQs), LinkedIn (https://apo-opa.info/3R1QXQl), Instagram (https://apo-opa.info/3KZTXKa), Facebook, (https://apo-opa.info/3ylgNE9) and YouTube (https://apo-opa.info/3YDG5bH).
Distributed by APO Group on behalf of Africa’s Business Heroes (ABH).
Press Contact:
Africa's Business Heroes Press Room:
abh.press@list.alibaba-inc.com
For media inquiries or interview requests, please contact:
English:
Tracy Walakira
tracy.walakira@apo-opa.com
French/Arabic:
Malika Bouayad
malika.bouayad@apo-opa.com
About Africa's Business Heroes:
The Africa's Business Heroes Prize Competition is a philanthropic initiative sponsored by the Jack Ma Foundation and Alibaba Philanthropy. It aims to support, inspire and enable the next generation of African entrepreneurs across all sectors who are building a brighter future for the continent, by offering grant funding, training programs and support for the development of an entrepreneurial ecosystem. Over a 10-year period, each year the ABH Prize Competition and show features 10 entrepreneur finalists as they pitch their business to win a share of US$1.5 million in grant money.
Women urged to be agents of change
KwaZulu-Natal Premier Nomusa Dube-Ncube has urged women in leadership positions to become agents of change in the struggle for women emancipation.
Addressing the Evolution of Women in Leadership Conference at Durban, Dube-Ncube cautioned that it is easy for women to assume that their liberation will come from others, other than themselves.
“Those who are oppressed need not accept a diminished sense of self. This must not be the case with our fight for socio-economic emancipation as women. The evolution of women in leadership is less about celebrating how far we have come, but more about how we re-adjust the lenses of our struggle, such that we usher in a new world,” Dube-Ncube said.
Attended by more than 200 women leaders, entrepreneurs and decision-makers, the main point of the conference was the effect of Gender-Based Violence and Femicide (GBVF) and its impact in hampering impactful change in society.
The Premier highlighted a number of interventions that government has implemented to fight the scourge of GBV, these include, amongst others, the Light-Up Inanda Campaign where eThekwini Metro is working together with Mnambithi Group in Public-Private Partnership providing solar-powered streetlights in Inanda Township, which has been identified as the number one GBV spot in the country.
“The Office of the Premier recently secured funding from private sector partners to build the initial foundation of the GBVF App with a panic button. Making the system fully operational requires effective ward- based GBVF Rapid Response Teams integrated to War Rooms.
“The GBVF App will be linked to members of the Gender Based Violence and Femicide Rapid Response Teams which include war room, members of the Executive Committee (EXCO), traditional leadership, and SAPS,” the Premier highlighted.
The Premier also challenged women to be their own liberators and to understand that the change they want to see is not so that they can be like men, but to usher in a new world characterised by peace, equality, justice and prosperity.
She also urged women in leadership positions to lift more women so that the occupation of leadership positions should be seen less as an exception, but “more as a norm”. – SAnews.gov.za
GabiK
Wed, 08/30/2023 - 13:02
Blended finance fund to assist farmers alleviate energy challenges
The ongoing load shedding in South Africa has become a serious constraint on growth and profitability for various sectors, including agriculture.
In addressing the negative impact on the productivity and profitability of farm operations brought about by the load shedding crisis, the Land Bank and Department of Agriculture, Land Reform and Rural Development (DALRRD), have launched a blended finance fund, which is geared towards financing alternative energy solutions with a focus on energy intensive agricultural activities which include irrigation, intensive agricultural production systems and on-farm cold chain related activities.
The Agro Energy Fund aims to support all South African citizens, producers in the agricultural sector, including smallholder, medium scale, large scale and mega commercial producers.
The launch of the Agro Energy Fund follows the successful launch of the Blended Finance Scheme (BFS) in October 2022 through the partnership between Land Bank and DALRRD, where the bank, in collaboration with the department launched the R2 billion BFS.
Speaking at the launch held in Pretoria on Tuesday, DALRRD Minister Thoko Didiza emphasised that the purpose of the Agro Energy Fund is to incentivise farmers to invest in alternative energy sources, and will run parallel to other existing financial instruments that are designed to support farmers with production, farmer infrastructure and market, amongst others.
Didiza explained that the applications for the fund will be directed to the Land Bank and will be subjected to approval guidelines of the bank.
“The funding will be deployed through a blended finance structure which is a combination of a loan and grant. DALRRD will contribute a grant portion to a total value of R500 million which will be matched with a loan portion to a total value of R710 million from Land Bank.
“This will effectively create a R1.21 billion fund size. The fund will be available in the market until the allocated funds are completely drawn down,” Didiza explained.
The Minister added that the priority will be on supporting dairy farming, piggeries, poultry, all irrigated commodities and on-farm processing.
“In deploying funding to producers, the Bank will also rollout its Green Finance product offering with a focus on financing solar panels, biogas and biomass plants which will result in the installation and commissioning of energy efficiency projects across the country which will partially offset electricity usage from the grid.
“The fund will enable the bank to contribute to building resilience against energy shocks in the sector which have negatively impacted productivity and profitability in farm operations. The food security and rural development remain key priorities in the agricultural sector,” the Minister said.
Land Bank Board Chairperson, Thabi Nkosi, expressed the bank’s appreciation to be in partnership with the department for the implementation of the Agro Energy Fund, and also commended the department’s allocation of the R500 million grant.
“The fund aims to support all South African producers - from smallholder farmers to large commercial producers - in a manner that ensures a balanced allocation of funds across various farming cohorts, according to need,” Nkosi said.
Nkosi explained that the smallholder producers will be eligible for up to 70% total finance amount, with the grant portion capped at R500 000 per applicant, while medium scale producers will be eligible for up to 50% of the total financed amount, with the grant portion capped at R1 million per applicant.
“Large producers will be eligible for a grant of up to 30% of the total financed amount, with the grant portion capped at R1.5 million per applicant. On this basis, the fund is expected to support over 500 farmers across the country,” Nkosi said.
While acknowledging that the fund may not reach all of South Africa’s farmers, Nkosi said, this initiative, with specific focus on renewable energy solutions, will catalyse the agricultural sector’s adoption of more sustainable farming practice.
The applications to the Agro-Energy Fund are now open, and the details about the fund, product offering, and how clients can contact and apply for funding support from the Land Bank can be found on www.landbank.co.za or www.dalrrd.gov.za – SAnews.gov.za
GabiK
Wed, 08/30/2023 - 10:06
Economic reforms to create growth, jobs
Through economic reforms implemented through Operation Vulindlela, President Cyril Ramaphosa says government is steadily laying the foundation for a revival of economic growth.
In his weekly newsletter, the President noted the release of a progress report, which highlights a number of key milestones that have been reached during the past quarter.
“Since Operation Vulindlela was established, we have built significant momentum in economic reforms to create growth and jobs.
“Through these reforms we are steadily laying the foundation for a revival of economic growth. By restructuring our network, industries like energy, telecommunications, ports and rail, we are opening the space for investment and a renewal of our nation’s infrastructure,” the President said.
The President highlighted that the first of the reform milestones was the digital migration process which government implemented by switching off analogue transmission for all frequencies above 694 MHz on 31 July 2023.
“This marks a significant step in migration from analogue to digital signal. This means that radio frequencies that were being used for television broadcasting can now be used for mobile telecommunications, which will make network communications more accessible and increase the speed and reduce the cost of data. The implementation of this reform will bring new investment in the telecommunications sector,” he said.
President Ramaphosa told citizens that work is underway to implement necessary reforms in the logistics sector to address the challenges that have held back the growth of South African exports.
He highlighted that the lack of investment and the increased cost of doing business have added to the many challenges that need to be addressed.
Another key milestone was reached with the selection of an international terminal operator to partner with Transnet at the Durban Pier 2 container terminal. This terminal handles close to half of South Africa’s port traffic.
“This partnership will increase investment for upgrading equipment and expanding terminal capacity. A key aspect of this partnership is that port infrastructure will remain state-owned and all jobs will be protected,” he said.
The President further highlighted that two critical pieces of legislation were tabled in Parliament this month, that will advance economic reform.
The Electricity Regulation Amendment Bill will support the restructuring of Eskom into three separate companies owned and controlled by Eskom Holdings, including an independent grid operator.
“Through this bill we will introduce competition in electricity generation, enabling a number of independent generators, alongside Eskom, to produce electricity to meet our country’s demand. This reform will fundamentally transform, modernise and improve South Africa’s energy sector to ensure energy security into the future.
“Meanwhile, the reforms we have implemented through the Energy Action Plan have unlocked new investment in renewable energy sources, both to end load shedding and to use our unique wind and solar resources to power economic growth,” he said.
One of key reforms that government has prioritised is in the water sector. Government has introduced the South African National Water Resources Infrastructure Bill to establish a dedicated national water agency to design, plan and finance water resource infrastructure.
This agency will enable significantly greater investment in bulk water infrastructure to guarantee water security in the years and decades to come, while creating jobs and unlocking new agricultural potential.
“We are implementing a range of other reforms to unlock economic growth, from creating an enabling regulatory environment for hemp and cannabis production to eradicating the backlog of title deeds for subsidised housing,” he said.
Despite difficult global conditions, the President said investors continue to see value in the South African economy and the benefit of the reform agenda government is pursuing.
He added that he is pleased that the BRICS Business Forum held last week was attended by 1 500 investors and business people from all five member countries.
The President said the Summit was able to showcase the potential of South Africa and the African continent as the next frontiers of productivity and growth.
“Many of the participants remarked on the enormous potential of our economic reform agenda to drive growth in the green economy, the digital economy and other key sectors.
“In all of the work that we do, our ultimate goal is the same: to build an inclusive, fast-growing and dynamic economy and thereby create a better life for all South Africans,” he said. – SAnews.gov.za
DikelediM
Tue, 08/29/2023 - 09:57
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BRICS women business alliance strategic catalysts for economic development
KwaZulu-Natal Premier, Nomusa Dube-Ncube, has described the BRICS Women’s Business Alliance Africa Trade Conference as a resounding success and economically meaningful for women.
The BRICS (Brazil, Russia, India, China and South Africa) Women’s Business Alliance Africa Trade Conference was held this week at the Inkosi Albert Luthuli ICC in Durban and brought together over 500 women-led Small Medium Enterprises, from 18 countries, including Zambia, the Democratic Republic of the Congo, Saudi Arabia, Ghana, Tanzania, Mozambique, Zimbabwe and several other African countries.
The conference saw the signing of several partnership agreements worth billions of rand, which the Premier commended as strategic catalysts for economic development.
Dube-Ncube said, in the landscape of interconnected economies, multilateral trade and investment play an essential role in forging a path towards inclusive prosperity and a more resilient global economic order.
She said the deals are worth over R48.4 billion and over 120 000 jobs will be created across these projects.
“This marks a pioneering moment in our shared journey as women,” the Premier said.
Among the strategic partnership agreements that were signed during the conference was the Russia-South Africa Mobility Center on BRICS, with a projected investment value of R47million, which represents a ground-breaking collaboration between the United Immigration Center (Russia) and Africans Do Travel Pty Ltd (South Africa).
This partnership aims to establish a physical centre in South Africa's KwaZulu-Natal province, with a central goal of facilitating smooth cross-border mobility for education, work, and tourism.
“This initiative underscores the significant influence of population mobility in advancing global sustainable development and economic stability,” Dube-Ncube said.
In the sphere of infrastructure, the R1.96 billion Innovation and Building Technologies Centre of Excellence is set to be established through Private Public Partnership between Afuraka IBT Consortium, and Russia's Federal Autonomous Institution "RosKapStroy".
The centre aims to empower micro, small, and medium-sized enterprises (MSMEs) in the construction sector to foster innovation, knowledge exchange, and skill enhancement for MSMEs, facilitating technologies transfer partnerships while promoting sustainable construction practices and eco-friendly technologies.
The signing of a Memorandum of Agreement also set on a dynamic agriculture and energy venture between China and South Africa.
The innovative multidimensional project, valued over R45 billion, seeks to seamlessly integrating marigold plantation and processing facility with an advanced 1GW solar production plant and beef production operation.
The Premier said the project will be established on a vast 3 000-hectare land parcel.
Regarding the medical and digital economy, a strategic joint venture emerged as the Africa-China AI Medics Platform, uniting Meridian Medical Network Corporation, EtaData, and Human Insights (Pty) Ltd.
The innovative partnership capitalises on expertise from China and South Africa, harnessing artificial intelligence, big data, and traditional medicine knowledge to shape the future of healthcare.
Dube-Ncube noted this collaboration aims to revolutionise African traditional medicine by creating a bridge to modern healthcare through the Africa-China AI Medics Platform, fostering economic growth, knowledge exchange, and healthcare accessibility.
“The project will commence with a pilot phase in South Africa, with an initial investment cost of R281.6 million, before expanding to other countries across the African continent,” the Premier explained.
The conference also witnessed the revolutionary IntelliBiz KZN portal geared towards pulsating business intelligence for economic advancement and progress.
The Premier said the ground-breaking initiative is led by prominent Chinese tech firm and a leading South African enterprise, aimed at shaping the digital economy.
“This innovative collaboration aims to provide the KwaZulu-Natal Government with valuable insights into a diverse business community across sectors and an estimated investment of over R846 million over three years, creating 61 600 new jobs.
“Aligned with KwaZulu-Natal Government's growth agenda, this venture seeks to develop a state-of-the-art KZN Smart business cloud platform that will empower enterprises, entrepreneurs, government entities and other stakeholders through corporate and data resources serving as a catalyst of economic development in KwaZulu-Natal,” Dube-Ncube highlighted.
Building upon this foundation, she said, the goal is to foster robust collaboration between the South African government and society, culminating in the establishment of a harmonious business ecological model that facilitates efficient and collaborative development across government and enterprise sectors.
The conference further witnessed multilateral collaboration between Apollo Hospitals Group, the Health Accelerator and Zayna Africa Holdings.
Dube-Ncube noted that the Health Precinct initiative holds the potential to transform healthcare standards and spur economic growth across India and South Africa.
With Apollo Hospitals Group's extensive medical expertise, she said the initiative aims to revolutionise healthcare across Africa, beginning in KwaZulu-Natal.
“Focused on health infrastructure development, medical education, combating various disease burdens, public health initiatives, technological innovation, research, telemedicine, medical tourism, and more, this partnership aims to create comprehensive healthcare solutions.
“By addressing critical aspects of healthcare delivery and accessibility, from education to technology, this project aspires to enhance healthcare across borders and contribute to global advancements in the field,” Dube-Ncube said.
“In the landscape of interconnected economies, multilateral trade and investment play an essential role in forging a path towards inclusive prosperity and a more resilient global economic order,” she said. – SAnews.gov.za
GabiK
Fri, 08/25/2023 - 12:03
Today we had a look at our MyPR.co.za web site statistics for the month to date of August 2023. We have deployed our own hosted stats software and have been closely watching and comparing these stats – with Google Ananlytics and our global Server Statistics programmes – in order to check the veracity of the …
The African energy sector serves as a catalyst for global development, and in this dynamic industry that powers the modern world, a select group of remarkable women have emerged as trailblazers. The African Energy Chamber (AEC) (www.EnergyChamber.org) is proud to announce the “25 Under 40 Energy Women Rising Stars' - individuals whose dedication, ingenuity and unwavering commitment serve as beacons of hope and pillars of inspiration. These women are redefining the possibilities within a traditionally male-dominated field, and the AEC proudly celebrates the rising stars who are leading the way towards making energy poverty history by 2030.
In no particular order:
Gbemisola Adeyemi Afolabi, Junior Geoscientist, AMNI International
Adeyemi Afolabi, a budding Junior Geoscientist at AMNI International, is an emerging force in the energy sector. With a Masters' Degree in Energy Geosciences from Rice University, she brings a fresh perspective to her role. Adeyemi's educational background, combined with her passion for geoscience, underscores her dedication to exploring and understanding the Earth's resources. Afolabi's commitment to harnessing scientific knowledge for practical energy solutions sets her apart as a promising talent within AMNI International.
Ibilola Akinnola, LNG Shipbroker, Maersk
Ibilola Akinnola has a wealth of experience across the legal and logistics fields, and represents an individual whose creativity, commitment and drive has advanced the global energy industry. A qualified Solicitor and Barrister of the Supreme Court of Nigeria, Akinnola went on to complete her Masters' degree in International Shipping Law at Queen Mary University of London. Now, she works at integrated logistics company Maersk as the LNG Shipbroker, and continues to make a lasting impact in the industry.
Rekik Bekele, CEO and Founder, Green Scene Energy
Rekik Bekele is a seasoned professional with over 10 years of experience in renewable energy. With a BSc in Electrical Engineering, she leads Green Scene Energy PLC as its CEO, providing affordable solar solutions in Ethiopia. Bekele also serves as a board member at Ethiopian Solar Energy Development Association, an Acumen fellow, and founder of PurposeBlack ETH and Run Africa. Her diverse initiatives drive positive change in energy and social development.
Sarah Bouzid, Technical Sales Lead: Production Systems Division, Schlumberger
Sarah Bouzid is a Chemical Engineer and Technical Sales Lead for Schlumberger's Production Systems Division – representing the only woman in this role in MENA region. Her expertise lies in the Audit to Optimize program, where she engages with clients to enhance process equipment performance. After completing an engineering degree from Bourmerdes University, she worked in various roles at Sonatrach. Navigating the largely male-dominated sector, Bouzid serves as a beacon of hope for women in science and engineering.
Sandra Chukwudozie, CEO, Salpha Energy
Sandra Chukwudozie is the Founder & CEO of Salpha Energy, a company dedicated to providing clean, affordable and innovative energy solutions for a carbon-neutral future. She is also Executive Director of Dozzy, one of Africa's largest petroleum storage facilities. After completing her studies at the University of Dundee in 2015, Chukwudozie dedicated her professional life to supporting economic growth through energy development, gaining experience in international management, industrial relations and economics. Her innovation, resilience and ability to embrace change has made her a leader in her field and an inspiration to many across the industry.
Nadia Simao da Costa, HR People Analytics Supervisor, Chevron
Nadia Simao da Costa is the People Analytics Supervisor at Chevron and represents the youngest person to be selected for Human Resource leadership at the company in Angola. Leveraging analytics and evidence to develop strategies to manage the current and future workforce needs, Simao da Costa is a strong advocate for inclusivity and human capital development. As the African energy sector grows and more people enter the workforce, professionals such as Simao da Costa serve as valuable role models.
Eghosa Ebube, Portfolio Analyst, Chevron Nigeria
Eghosa Ebube, initially Project Engineer and now Portfolio Analyst at global energy powerhouse Chevron, brings a wealth of expertise to the table. Having honed her skills in various roles including Onshore Construction Engineer, she has emerged as a force to be reckoned with in the energy sector. Her adeptness in engineering and her dedication to innovation shine through in her work, making her a pivotal contributor to Chevron's and Nigeria's energy success.
Katuiscia Laurence Ewane, General Field Engineer, SLB
With a Masters in Industrial Engineering from Ecole Nationale Supérieure Polytechnique, Katuiscia Laurence Ewane has spent several years working for global energy services company SLB. She currently serves as a General Field Engineer for the company and has pioneered several successful initiatives, including a new approach for the integration of Drilling Fluids and Cementing Fluids; completing a complex cementing operation on Mt Cameroon; and spearheading community outreach under the SLB Excellence in Educational Development program. Ewane is a testament to the important role female engineers play in Africa.
Taimi Itembu, Public and Government Affairs, ExxonMobil
A Harvard Kennedy School graduate with over 14 years' experience in leadership, energy and policy, Taimi Itembu represents an inspirational leader in Namibia's energy sector. She has served in various roles in the Namibian Government, showcasing her aptitude for policy dialogue and partnership building to drive transformation across the region. Her leadership in energy and exploration includes advocating for Africa strategy, investment protection, and a favorable operational environment, and as an industry expert, she represents a beacon of impactful leadership.
Anine Kilian: Managing Editor, Energy Capital & Power
Anine Kilian is a strong advocate for Africa's energy development. Currently serving as the Managing Editor for Africa-focused investment platform Energy Capital & Power, Kilian's journey began as a dedicated journalist and editor after studying at the Tshwane University of Technology in South Africa. Her career has taken her worldwide, and her expertise led her to become a pivotal writer at Creamer Media before joining Energy Capital & Power in 2018. Recognizing her talent and passion, Kilian was swiftly promoted to Managing Editor in 2021. Her journey epitomizes resilience, growth and a commitment to driving Africa's energy narrative at a time when the continent needs it most. Kilian represents a standout figure in the landscape of energy journalism and advocacy.
Ubuhle Noluti Mtetwa, National Manager, Secondary Logistics, bp Southern Africa
Armed with a degree in Transport Economics and Logistics Management, Ubuhle Noluti Mtetwa spearheads innovative projects in a traditionally male-dominated industry. In a relatively short period of time, Mtetwa climbed the ranks at bp from Logistics Intern to National Manager of Secondary Distribution. Now, she supports diversity efforts, using her platform to not only advance logistics in Africa's energy industry but support the progression of others.
Faith Musimenta, Senior Petroleum Economic and Financial Analyst, Petroleum Authority of Uganda
Faith Musimenta is currently the Senior Petroleum Economic and Financial Analyst at the Petroleum Authority of Uganda (PAU), where she leverages her skills in investment analysis to develop oil and gas financial models for billion-dollar projects. After competing her studies at the University of Dundee, Musimenta worked for various financial institutions including Citi Bank, Diamond Trust Bank and DFCU Bank. She represents an inspiration for women across the African financial sector, and continues to advocate for both inclusivity, sustainability and development of Uganda's oil and gas industry.
Nancy Asantewah Nkansah, Resource Manager: Planning and Supply Chain for West Africa, SLB
Nancy Asantewah Nkansah, a Resource Coordinator at SLB with 8+ years' experience, excels in planning chemical requirements and workforce coordination for efficient operations. With a BA in Political Science and a Geography minor, she spearheads resource management, enhances supply chain efficiency and facilitates environmentally responsible practices. From groundbreaking innovations to resilient problem-solving, Nkansah is redefining the energy industry in Africa.
Ezinne Nnachetta, Development Geologist, Chevron
Following the completion of her MSc in Petroleum Geoscience at Imperial College London, Ezinne Nnachetta has gained significant experience as a leading geoscientist for global energy major Chevron. Her 10-year commitment to the company demonstrates her dedication to opening up new hydrocarbon basins, integrating innovation with petroleum and forging new paths for women in energy. Nnachetta represents a role model for aspiring women in the field.
Teresa Isabel Nnang Avomo, CEO, GEPetrol
Teresa Isabel Nnang Ovomo, accomplished CEO of Equatorial Guinea's national oil company GEPetrol, ascended to the position after working in various positions at the company, including Deputy Director of Operations where she streamlined and optimized the NOC's upstream operations. Armed with a Masters from Heriot-Watt University, her journey includes various pivotal roles at Repsol. Avomo's leadership exemplifies operational acumen, innovation and drive, and she serves as an inspirational figurehead, both in Namibia's and Africa's energy sectors.
Monique Ntumngia, CEO, Green Girls Project
Monique Ntumngia is a sustainability entrepreneur and advocate for climate-gender justice. Founding Green Girls Organization, a Pan-African energy social enterprise, she leverages AI to pinpoint clean energy challenges faced by women in African rural communities. She is also the Founder of Monafrik Energy, whereby Monique measures and compares environmental impacts in supply chains, advancing clean energy initiatives. Her impactful work exemplifies her dedication to providing clean, affordable energy solutions not just in Cameroon but across Africa and beyond.
Lynette Nyagah, Project Lead, Bentworth Energy
As Project Lead at East Africa's pioneer oil and gas service company, Lynette Nyagah plays a pivotal role in establishing robust operational and quality systems. A graduate from the University of Cape Town, Nyagah gained experience in the sector as a Field Engineer for Baker Hughes. Now, she plays an instrumental part in positioning Bentworth as a globally recognized and competitive firm. Advocating for innovation in carbon footprint reduction, automation for enhanced efficiency, and the increase in participation by local African companies, Nyagha is an inspiration to many in the industry.
Oneyka Cindy Ojogbo, Partner, Centurion Law Group
Oneyka Cindy Ojogbo has a proven track record of providing strategic counsel to clients in complex energy transactions and projects. A graduate of Columbia Law School, Ojogbo currently serves as a Partner of Centurion Law Group, a pan-African legal and business advisory group. Throughout her career, Ojogbo has counselled clients across power, energy and infrastructure sectors. Her work has covered multiple sectors and tackled transactions of varying complexity, with her determination, passion and vision serving as an inspiration for many.
Isioma Okolo, Reservoir Engineer, Shell
Isioma Okolo is a Reservoir Engineer with the Shell Petroleum Development Company in Nigeria. She holds a Bachelor of Engineering Degree in Petroleum Engineering from The Federal University of Technology Owerri and an MBA from the Edinburgh Business School, Heriot-Watt University. Having worked as a Consultant in Pricewaterhouse Coopers and as a Society of Petroleum Engineering Certified Engineer, Okolo is paving the way for a prosperous future for Africa and beyond.
Uzochukwu Ozoh, Legal Advisor, Chevron
With a LLM from the University of Dundee and an MBA from Imperial College Business School, Uzochukwu Ozoh has emerged as an accomplished transactional lawyer who merges business acumen, legal prowess and risk analysis within the energy sector. Currently serving as Legal Advisor at Chevron, Ozoh guides a team of legal experts facilitating intricate gas, commercial, and supply chain transactions exceeding US$1 billion. Her mastery of stakeholder relations, leadership and organizational development makes her a force to be reckoned with.
Lecticia Sepulvede, Public and Government Affairs Advisor, ExxonMobil
Lecticia Sepulvede has a Masters in Petroleum, Energy, Economics and Finance from the University of Aberdeen and currently serves as the Public and Government Affairs Advisor for global energy major ExxonMobil. Her vision is to support Mozambicans achieve their full potential, and she works closely with stakeholders to facilitate safety and security efforts in the Cabo Delgado province of the country. Her commitment to people, her focus on the energy sector, and her ability to manage stressful environments makes her a highly valuable and admirable energy professional.
Eman S Shahin, Performance Lead and Senior Petroleum Engineer, Dragon Oil Egypt
Eman Shahin is a proficient Performance Lead and Senior Petroleum Engineer (SPE) at Dragon Oil Egypt, and boasts over 9 years' experience in reservoir, petroleum and production engineering. Her prowess spans budgeting, production forecasting, reservoir development planning and optimizing waterflood management. As a leader and coach at SPE Egypt, her commitment to mentorship shines. With roots at Cairo University and experience at GUPCO, Shahin's journey embodies expertise, leadership and fostering an inclusive energy landscape.
Mwanyengwa Ndapewoshali Shapwanale, Director: Communications and Stakeholders Relations, ReconEnergy Namibia
Mwanyengwa Ndapewoshali Shapwanale is the Director of Communication and Stakeholder Relations at Recon Energy Namibia. With a degree in Communication and Media Studies from the University of Cape Town and 10 years' experience in journalism and communication, she brings valuable compliance and ESG skills to her role in the energy sector. As the youngest member of Recon's management, she plays a pivotal role in shaping the organization's communication landscape.
Natznet Tesfay, VP Economics & Country Risk, S&P Global
Natznet Tesfay is Vice President of Economics & Country Risk at S&P Global Market Intelligence. Leading a global team of 150+ experts, she forecasts economic and country risk outlooks. With a rich background at IHS Markit and Exclusive Analysis, her expertise spans geopolitical analysis, energy transition and supply chain alignment. With degrees from Harvard University, The London School of Economics, and SOAS University of London, she has emerged as a trailblazer and advocate for Africa's economic future.
Nidra Araba Yebuah, Digital and Integration Account Manager for Ghana and Equatorial Guinea, SLB
Nidra Araba Yebuah is an accomplished Senior Geologist and Account Manager with over a decade of experience in the oil and gas service industry. She blends technical proficiency with business acumen to excel in her role. Her expertise spans data interpretation, geological environments and technical sales support. Yebuah has significantly contributed to sub-Saharan African operations, demonstrating innovation and leadership in the dynamic industry.
Call for Nominations
If you were not chosen this year, or if you nominated someone who was not selected, please understand that the process is highly selective, and we encourage you to re-submit updated information in 2024. We welcome suggestions of well-deserving candidates throughout the year. Simply email awben@energychamber.org. We look forward to honoring outstanding 25 Under 40 Energy Women Rising Stars again in 2024.
Distributed by APO Group on behalf of African Energy Chamber.
Renewable energy is here to stay, as seen by the fast adoption of renewable energy generation in South Africa to date. According to the Council for Scientific and Industrial Research (CSIR) statistics from 2022, renewable energy has a role to play in reducing demand on the failing South African energy grid. “In 2022, the VRE …
SA, Namibia talks focus on energy security
South Africa and fellow SADC [Southern Africa Development Community] country, Namibia, have explored areas of mutual cooperation in energy generation at a ministerial level meeting on Friday.
The Minister in the Presidency responsible for Electricity, Dr Kgosientsho Ramokgopa, on Friday undertook a working visit to Namibia to participate in a bilateral meeting with the Minister of Mines and Energy in Namibia, Tom Alweendo.
The meeting explored opportunities for mutual cooperation between South Africa and Namibia in the following areas:
A senior team of Eskom executives formed part of the delegation and shared the work already underway, and future planning to strengthen and expand the existing transmission infrastructure spanning from the Northern Cape in South Africa to Oranjemond in the south of Namibia.
The meeting discussed the development and exploitation of gas reserves from the Kudu fields in the Orange Basin to provide affordable gas fired base load power of up to 840MW for 35 years. South Africa could benefit from up to 600MW of this.
The meeting also took note of opportunities in the green hydrogen sector, including:
“Reiterating our historic political and cultural ties, Minister Ramokgopa expressed the hope that the visit and work around energy security and regional energy sovereignty will further cement the strong bonds between our Republics, in the interest of the development of the Region and its People,” Minister Ramokgopa’s office said in a statement. – SAnews.gov.za
Edwin
Sat, 08/19/2023 - 15:51
The R1.9-billion Giba Business Estate, the largest light industrial and logistics development to break ground within Durban’s Outer West in more than three years, will not only create hundreds of short term and permanent jobs but also significantly boost the greater eThekwini region’s GDP. Speaking at the official sod turning for the development on Wednesday, …
The global shift towards sustainable energy solutions has seen a significant rise in the adoption of solar power. South Africa, blessed with abundant sunlight, is no exception. But what if the upfront costs of solar installations are a barrier for you? Enter the concept of “rent-to-own solar systems.” What is Rent-to-Own Solar? Simply put, …
Meet dynamic young chef, Mythrayie Iyer, from India who will be representing the region of Africa, Middle East and South Asia at the Grand Finale of the S.Pellegrino Young Chef Academy competition 2022-23. SOUTH AFRICA, CAPE TOWN – Since January this year, when she wowed the local jury with her signature dish, Mythrayie has been …
Introduction The concept of a home has evolved dramatically over the years. From simple shelters to grand architectural marvels, and now to intelligent living spaces, our homes have mirrored our societal progress. Today, the integration of technology into our residences has given rise to the phenomenon of “smart homes.” But what exactly makes these homes …
A group of organisations have created successful small projects, but now they want to aim bigger
There are many factors to consider when it comes to deciding whether to sell your house or hold onto it. These include current real estate market conditions, the costs associated with selling a property, personal financial circumstances, and the physical appeal of the property to prospective buyers, says Paul Stevens, CEO of Just Property. Unpacking …
Introduction Carbon offsetting has emerged as a vital strategy in the global effort to reduce greenhouse gas emissions and mitigate climate change. By definition, carbon offsetting involves compensating for carbon dioxide emissions produced by human activities by funding projects that reduce or remove an equivalent amount of greenhouse gases from the atmosphere. This article delves …
Johannesburg 10th August – Inspired Schools South Africa, a leading educational institution committed to providing uninterrupted learning experiences, is excited to announce its collaboration with a highly reputable and well-known engineering company for a major solar energy project. This initiative aims to mitigate the effects of load shedding and drive the adoption of renewable energy, …
Public opening of Past Disquiet, guest curated by curator-writers Kristine Khouri and Rasha Salti Public opening of Seismography of Struggle: Towards a Global History of Critical and Cultural Journals, guest curated by art historian Zahia Rahmani Symposium titled The Poetics and Politics of Archival Practice Launch of Zeitz MOCAA’s latest publication, Radical Solidarity: A Reader …
Government launches loan to invest in solar equipment
The National Treasury has launched the Energy Bounce Back Loan Guarantee Scheme (EBB) - an initiative aimed at alleviating the impact of continuing difficulties resulting from unreliable power supply for small businesses and households.
This follows President Cyril Ramaphosa’s commitment in his 2023 State of the Nation Address to adjust the bounce-back loan scheme (BBS) to enable small businesses to invest in solar equipment. Minister of Finance Enoch Godongwana has provided detail on the adjustment of the Bounce-Back Loan Scheme.
“The EBB aims to generate 1000MW in additional generation capacity as well as facilitate resilience to loadshedding for micro and informal businesses. Resilience measures include power storage assets without generating capacity, like batteries and inverters. The EBB is a complementary intervention to the tax measures announced in the 2023 Budget Speech. Applicants may therefore apply for both tax and EBB measures,” the National Treasury said on Tuesday.
Pricing of the loans will be capped at the repo rate (at the commencement of the loan) plus a maximum of 6%.
Households and Small and Medium Enterprises (SME’s) will have the option of approaching any participating bank. Participating banks, Development Finance Institutions and non-bank SME finance providers will compete subject to the product terms, conditions, and pricing cap. The EBB will be available until 30 August 2024.
To facilitate investments, government will, through a government guarantee administered by the South African Reserve Bank, assume the initial losses (20%) with finance providers assuming the risk for remaining losses for SME’s and households’ rooftop photovoltaic solar investments (rooftop solar). The EBB will operate through three mechanisms.
The loan guarantee for rooftop solar for SMEs and households’ investment facilitates loans to SMEs and households for investments related to rooftop solar generated energy.
This investment includes solar panels, batteries, inverters, and other installation related costs.
Loan guarantee for rooftop solar for Energy Service Companies (ESCOs) facilitates loans to ESCOs who provide leasing, instalment sale, and power purchase contracts to SMEs and households.
“This mechanism will allow businesses and households to switch to ESCO service providers for more reliable and cleaner energy without the need for loans to finance the full upfront costs of rooftop solar equipment themselves.
Support from the EBB, which will be provided to the ESCOs to enable them to scale up and expand leasing services to households and small businesses, will require ESCOs to assess the individual need of households or businesses, the implementation of a suitable solution, and the conclusion of a leasing, instalment sale, and power purchase contract between the ESCO and applicant,” National Treasury said.
Working capital loans for businesses in rooftop solar supply chain will facilitate working capital loans for those businesses that supply rooftop solar to meet increased demand.
“This mechanism will increase the supply of rooftop solar solutions allowing businesses to source rooftop solar equipment with minimum delays.
“An additional mechanism will be concluded with the Industrial Development Corporation (IDC) to facilitate new ESCO entrants, as well as scale up existing ESCO’s through a mezzanine finance instrument.
“The IDC and National Treasury will provide details of this instrument once concluded. Participation in the EBB will be facilitated through commercial banks on an opt-in basis. Non-bank finance providers, including wholesale retailers who provide lending products to SMEs for EBB eligible related loans, can access the scheme through participating commercial banks,” National Treasury said.
Participation through commercial banks will be subject to basic requirements, such as tax compliance and adherence to other legal and regulatory requirements.
Any business borrowing under the EBB will be expected to meet the participating bank’s specific requirements, be registered with the Companies and Intellectual Property Commission or be registered for Value Added Tax in terms of the Value Added Tax Act, 89 of 1991 with the South African Revenue Service.
Eligible businesses must have a maximum turnover of R300 million. DFI’s and non-bank lenders, which include wholesale retailers offering credit products servicing informal traders, can also access the scheme through a commercial bank up to a maximum of R300 million per entity.
The maximum amount a business can borrow is R10 million. Businesses can also borrow a maximum of R30 000 through the scheme, for resilience measures.
This is to enable access for micro, informal businesses that may require portable batteries or similar equipment to these assets.
For households, a maximum loan amount, for the purchasing of rooftop solar, will be R300 000 per household.
For the leasing mechanism, prospective customers would also need to comply with the requirements set out by participating banks and the ESCO providing the leasing service.
Businesses in the rooftop solar supply chain, those importing batteries, investors and panels will be able to borrow up to R100 million for working capital to ensure that wait times are reduced. Installers can borrow a maximum of R100 million. – SAnews.gov.za
nosihle
Thu, 08/10/2023 - 09:51