Mozambique’s current generating capacity is 2,827MW, predominantly supplied by hydropower which is regularly impacted by severe droughts. Currently, only 30% of the population has access to electricity though most of the power is exported to neighbouring South Africa. Demand for power internally grows steadily between 6-8% per year and about 20% in the north where most of the mining operations are located. (source: www.usaid.gov/powerafrica/mozambique)
Peaceful and stable, the Botswanan Government has an emphasis on transparency and is working to establish the country as a centre for innovation and investment in Africa. Benefits of operating in Botswana include low taxes, no foreign exchange controls or restrictions on business as well as consistent government investment in core infrastructure.
Tanzania is politically stable with an established tax and regulatory regime for foreign investors as well as a simplified process for the handling of investment proposals. Established infrastructure and an abundant source of labour enable large projects to be successfully developed in Tanzania.
As the UK’s power generation becomes increasingly reliant on renewable sources, energy supply becomes more irregular. Consequently, balancing supply and demand is an increasingly challenging, yet vital component of the energy supply market and flexible energy generation is a key solution to this.
Africa’s Power Shortage
Africa represents a rapidly growing market economy with an acute power deficit.
- Today, two in three Africans do not have access to electricity
- 620 million people in Africa live without power
- Power providers in the region are cash-strapped, suffer from ageing infrastructure and are unable to serve their customers in a reliable manner
- Two in three people in Sub-Saharan Africa live without power
- Energy-sector bottlenecks and power shortages cost the region 2-4 per cent of GDP annually, undermining sustainable economic growth, jobs and investment
- Although sub-Saharan Africa consumes less electricity than Brazil, by 2040 its demand will reach a level equal to 2010 consumption in Latin America and India combined
- Manufacturers lose an average of 56 days of production a year due to power shortages
- 620 million Africans rely on firewood, kerosene and charcoal for cooking, heating and lighting
- 600,000 Africans, mainly women and children, die prematurely every year due to illnesses caused by indoor air pollution produced by firewood, kerosene and charcoal
- Hydroelectricity capacity cannot be depended upon due to recurrent droughts on the continent
(source: World Bank, We Forum, McKinsey)