African business and financial opportunities

Overview of Sector Strategies and Projects :Energy (including renewable energy), Transport,

Information and Communication Technologies (ICT) .

Lisbon, 06/09/2011

Valentin Zongo

Manager, Energy Division

Energy, Environnment and Climate Change Department

v.zongo@afdb.org

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Our vision, the main infrastructure sectors, focus on projects and business opportunities

I. The African Development Bank’s Strategy-Focused on

Infrastructure

II. Energy Sector and Climate Change

III. Transport and ICT Departments

IV. From Bottlenecks to Business Opportunities in Africa2

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AfDB is the Pan-African Multilateral Development Bank (including 53

Regional Member Countries and 24 Non Regional Member Countries)

WHO WE ARE-OUR STRATEGY

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As at year end 2010, AfDB approved 57 energy projects under both

private and public sector windows for a total of UA 4 565 Million (Eur 5 250

Million)

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In 2010 the AfDB approved 12 projects for a total of Euros 1 260 million

(47% of total invested in infrastructure)

The Bank has tripled its capital in may 2010 in order to address infrastructure issues

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The OITC’s current Portfolio is US$ 6.5 billion.

Focused on : � Transport Infrastructure (Hard and Soft

infrastructure) � Projects of Regional Integration/Trade dimensions � Private Sector Development (PPP)� Green Projects� Capacity Building� ICT:

IV. From Bottlenecks to Business Opportunities

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The Challenges are many……Item Data

African Population without access to electricity 500 million in 2009 (about 50% of the african

population)

Population growth rate + 57% in 2030

Total electricity generation capacity 114 Gwt (36% in south Africa)

Electricity access rates (2010) North Africa: 95%

Sub saharan Africa : 30%

South Africa ( country): 75%

Annual Energy consumption per person in 2009 470 Kwh /(1900 Kwh in China, 7 300 kwh in

France and 12 200 Kwh in USA)

� According to IEA 2009 projections for 2030 : 50% of the global population without access to electricity

will live in Africa.

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Overview of Africa’s Infrastructure (source : AfDB, 2011)

The Challenges are many……

Source : European Union, 2009

The Challenges are many….

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Africa is the only continent in which the number of people without access to electricity will

increase in the next 20 years (526 million in 2002/584 million in 2030)

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…from Challenges to Business Opportunities…

Primary source of

energy

Quantity ( in percentage of World’s potential)

Oil 9% of the World’s potential (61% in Nigeria)

Gas 8% of the World’s potential ( 77% in Nigeria)

Coal 8% of the World’s potential ( 90% in South Africa, Botswana and

Zimbabwe)

Hydro 10% of the World’s potential ( 40% in Inga-DRC, 20% in Ethiopia)

Wind About 29% of the World’s potential

Uranium 19% of the World’s potential

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- A context of a huge potential-

REGION Offer in Gwh (2009)

Estimated demand in Gwh

(2030 )

Estimated demand in Gwh

(2050)

NORTH AFRICA 38 100 300

WEST AFRICA 27 <50 <100

CENTRAL AFRICA 2 <50 100

EAST AFRICA 6 <50 <100

SOUTH AFRICA 41 <50 <100

AFRICA- TOTAL 114 280 700

Source : WEC, 2009

-A context of an increasing market demand-

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-PARTICULAR CASE OF INGA IN DRC: POTENTIAL AND

OPPORTUNITIES FOR AN AFRICAN INTEGRATION-

Congo River’s potential� 40 000 m3/s (average)

Hydraulic power� Inga I: 351 MW (installed)

� Inga II:1424 MW (installed)

� Phased Inga Development~ 39 000 MW (in several stages)

INGA: Inga’s hydroelectric potential is about 100 000 MW, (only 4% of this capacity is

used).

-INGA AND THE MAIN POSSIBLE INTERCONNECTIONS IN THE CONTINENT-

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MULTINATIONAL PROJECTS

�DRC – Egypt interconnection : 5300 km

�DRC – Nigeria interconnection : 1400

km

�DRC– Zambia – South Africa

interconnection : 3 676 km

�DRC – Angola -Namibia – South Africa

interconnection : 2 734 km

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�Private sector participation in the sectors to drive efficiency

�Low Carbon Investments and technology to reduce the level of emission of GHG from increased traffic growth.

�Innovative and tailor-made PPP schemes

�Strong project management expertise, institutional reforms and governance improvement

�Innovative construction technologies

�Knowledge transfer – Training Programmes

�Innovative financing & risk mitigation instruments .

WHAT WE CAN DO TOGETHER: FINANCE-PARTNERSHIP AND KNOWLEDGE

TRANSFER

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�Promote governance and increase institutional reforms for the National Electricity Companies

�Adapt instruments and volumes of financing to the growing needs (Kyoto, Copenhagen and Cancun dialogues)

�Increase regional investments-IPP’s

�invest in renewable energy and incorporate climate change into the energy equation ( households, firms, countries)

WHAT WE CAN DO TOGETHER: FINANCE-PARTNERSHIP AND KNOWLEDGE

TRANSFER

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Valentin Zongo v.zongo@afdb.org

Our vision: More and Cleaner Power in Africa !Our vision: More and Cleaner Power in Africa !

Thank You !Thank You !