twitter Facebook Linkedin acp Contact Us

Read the Digital Magazine

Top Stories

Grid List

Southern Africa’s rich renewable resources could help form the basis for a thriving hydrogen economy. (Image source: Synergy Consulting)

Energy

According to Synergy Consulting, southern Africa stands at a pivotal moment in its energy transition, with the hydrogen economy emerging as a key element in the region's sustainable future

This potential shift could address energy security concerns, contribute to economic diversification, and support global decarbonisation efforts. As nations within the region explore this opportunity, several factors – including abundant natural resources, strategic partnerships, and technological advancements – will play crucial roles in shaping the future of hydrogen energy in southern Africa.

Abundant renewable resources

One of the most significant advantages for southern Africa in developing a hydrogen economy is the region's rich renewable energy resources. Countries like South Africa and Namibia have vast solar and wind energy potential, which are essential for producing green hydrogen through electrolysis. Green hydrogen, derived from renewable energy sources, is seen as a clean and sustainable alternative to fossil fuels. This presents an opportunity for southern African nations to leverage their natural resources to produce and export green hydrogen, positioning themselves as key players in the global hydrogen market.

South Africa, in particular, is well-positioned due to its established infrastructure and industrial base. The country has a history of hydrogen production through coal gasification and is home to some of the world’s largest platinum reserves, a critical material for hydrogen fuel cells. This makes South Africa a strategic location for developing a comprehensive hydrogen value chain, from production to utilisation in various industries.

Economic diversification and job creation

The hydrogen economy offers a path toward economic diversification in southern Africa, particularly for countries heavily reliant on fossil fuel exports. By investing in hydrogen technology, these nations can reduce their dependence on volatile oil and gas markets and create new revenue streams. Moreover, the hydrogen economy has the potential to generate significant employment opportunities, from research and development to manufacturing and logistics.

For instance, developing hydrogen production facilities, refueling stations, and fuel cell manufacturing plants would require a skilled workforce, contributing to job creation in urban and rural areas. This is particularly important in a region where unemployment remains a pressing issue.

Strategic partnerships and investments

The successful development of a hydrogen economy in southern Africa will depend on strategic partnerships and investments. International collaboration is essential, as it brings in financial resources, technical expertise, and market access. Partnerships with countries and companies leading in hydrogen technology can help southern African nations accelerate their hydrogen initiatives and integrate into the global hydrogen supply chain.

Several countries, including Germany and Japan, have already shown interest in collaborating with southern African nations on hydrogen projects. These partnerships could facilitate technology transfer, capacity building, and infrastructure development, crucial for the region’s hydrogen economy.

Challenges and the road ahead

Despite its potential, the hydrogen economy in southern Africa faces several challenges. These include high initial investment costs, the need for regulatory frameworks, and the development of a robust infrastructure. Additionally, ensuring that hydrogen production is truly green – i.e., derived from renewable sources – is essential to avoid merely shifting emissions from one sector to another.

In conclusion, while southern Africa has significant opportunities in the hydrogen economy, realising its full potential will require coordinated efforts across governments, industry, and international partners. With the right strategies in place, southern Africa could emerge as a leader in the global hydrogen market, driving sustainable development and economic growth in the region.

This article is authored by Synergy Consulting IFA

Left to right: Takuya Yamamoto, head of construction & mining equipment business unit No.2 Sumitomo Corporation; Romain Bia, deputy CEO BIA Group; Kenichi Hyuga, general manager, construction & mining system SBU Sumitomo Corporation; Vincent Bia, CEO BIA Group; and Damien De Prijck, CFO BIA Group. (Image source: BIA Group)

Construction

BIA Group, an exclusive distributor of Komatsu equipment and other OEMs in Africa, has formed a strategic partnership with Sumitomo Corporation, an operator of a diverse portfolio of businesses including a longstanding experience in the distribution of Komatsu equipment and rental

The two have agreed to partner with an eye to furthering the growth of their businesses and to generate synergies. The deal includes a minority investment by Sumitomo in the BIA Group and aims to bring together the two companies’ track records as Komatsu distributors and experience as independent OEM distributors in complementary geographies and industries.

Sumitomo Corporation will gain exposure to the mining and construction machinery market in the European and African geographies served by BIA Group, while BIA Group will benefit from Sumitomo Corporation’s global network and its experience in the distribution of Komatsu equipment in complementary geographies.

Meeting Africa's construction and mining needs

“We are very proud of the interest and trust shown by Sumitomo Corporation in partnering with BIA Group,” remarked Vincent Bia, CEO of the BIA Group. “This partnership allows BIA Group to set up new ambitions in the growing African market. By leveraging both companies’ long experience in the distribution of Komatsu equipment, we will be able to strengthen our market position by offering innovating solutions to our customers in the construction, mining, transport, and energy segments.”

Kenichi Hyuga, general manager, construction & mining systems strategic business unit, added, “We are delighted to announce our collaboration with BIA Group, a pioneer of distribution business in Europe and African countries for more than a century. We are committed to creating value through this partnership, leveraging the strengths of both companies to achieve sustainable growth. Sumitomo Corporation intends to contribute to the future development of BIA Group and the enhancement of customer satisfaction by investing its long-accumulated business management experience in mining and construction equipment distributors.”

The SEW PPK series delivers 10 to 18 kNm of torque with a ratio range from 65:1 to 390:1. (Image source: SEW-EURODRIVE)

Mining

As its exhibition presence at Electra Mining Africa 2024 showed, SEW-EURODRIVE is rolling out an even greater selection of planetary drives as part of its strategy to ‘close the loop’ in its product offerings by expanding into more industry sectors

Among the new ranges being introduced into South Africa are its SEW PPK series and the SEW P2.e series of planetary gear units – both showcasing new opportunities for industrial gearbox users. According to Jonathan McKey, national sales and marketing manager at SEW-EURODRIVE, these new additions to the local range highlight the company’s global engineering and applications capabilities.

“The PPK series was originally developed by SEW-EURODRIVE in Brazil, for instance, to serve their large and thriving sugar sector,” said McKey. “Our design and engineering experts in Germany then further leveraged these advances when they developed the SEW P2.e series – aimed at larger applications.”

The SEW-EURODRIVE P2.e series

He emphasised that both series built upon the key benefits that planetary gear units present to customers: a compact solution for space-constrained conditions, alongside high torque and low speed outputs. The SEW PPK series delivers 10 to 18 kNm of torque with a ratio range from 65:1 to 390:1, while the SEW P2.e series encompasses torque ratings from 24 to 124 kNm with ratios from 15,2:1 to 332:1.

“The SEW PPK satisfies the need for a lower torque requirement, and is well suited to southern hemisphere markets,” he explained. The ratio can be further reduced by the addition of a primary reducer before the planetary head, to reach ratios up to 10,650:1 – for a much lower speed capability.

The SEW P2.e was then developed with all these benefits, but with a broader spectrum of diversity in its speed – up to 100 rpm – as well as in ratio and torque, he said. While most planetary gearboxes have a three-stage design, the SEW P2.e can also be supplied in a two-stage model.

Greg Lewis, SEW-EURODRIVE business development manager for projects, pointed out that the company has been careful to retain the same critical dimensions as previous SEW P-series models. This allows customers to migrate seamlessly to the more versatile SEW P2.e units without altering their operating environment or infrastructure.

Meeting a myriad of applications

Among the common applications in the mining sector for planetary gearboxes, said Lewis, are clarifiers, thickeners and apron feeders. Other industrial applications include slewing drives, screw feeders and wood panel presses.

“In the agricultural sector, sugar mills are big users of planetary units,” he remarked. “The SEW PPK series, arising as it did to serve the needs of sugar mills in Brazil, has exciting opportunities for application in African countries.”

McKey highlighted another important aspect of these planetary ranges: their reduced weight compared to traditional technologies.

“A sugar mill’s crystalliser, for example, will conventionally have a multi-gear solution which applies considerable weight and strain on the system,” he explained. “A compact planetary unit from SEW-EURODRIVE can now deliver the same results with much less weight – within an integrated design. The benefits are also felt in less wear on components like bearings and the civils structures, which leads to less maintenance being required.”

Also, on SEW-EURODRIVE’s showcase of new products is its high performance ECO2 geared motors, designed in line with the company’s sustainability focus and the market’s growing demand for products that are more environmentally-friendly in their manufacturing process. The ECO2 range boasts a coating-free design, so there are no solvents or coatings used on the outer surfaces. This makes these units efficient and reliable in indoor applications where humidity levels can reach 60%, and they can operate in temperatures between minus 20° C and 60° C. Their aluminium construction reacts with oxygen to form a thin protective layer; the ECO2 design also meets the requirements of ISO 12944 corrosive category 1.

The SEW EURODRIVE ECO2 Range

Standing out in the market

On the automation side, a highlight of the SEW-EURODRIVE offering is the SEW MOVI-C drive technology – a comprehensive modular automation system designed to provide seamless integration and high performance for various industrial applications.

Willem Strydom, SEW-EURODRIVE’s manager business development electronics, pointed to applications like hoisting where MOVI-C facilitates the use of regenerative power from braking and this energy can be fed back into the system or stored in battery packs. The MOVILINK digital data interface (DDI) connects the drive train into the data system through a unique single hybrid cable solution.

“This further allows customers to receive real-time information on a range of indices, such as energy efficiency, application performance and condition monitoring,” he said. “This differentiates us significantly in the market.”

This article is authored by SEW-EURODRIVE. Click here to learn more about the company’s range of solutions.

Capital raised from the Series A round has been used to ramp up electric motorcycle and battery production, expand the company’s swap station network, and continue R&D on battery technology and software. (Image source: Ampersand)

Logistics

Ampersand, a leading EV energy tech company, has revealed total raised equity of US$21.5mn over the last 12 months

New investments from AHL Venture Partners and Everstrong Capital has bolstered the company’s total haul, alongside Beyond Capital Ventures reinvesting in a follow-up to its Series A equity commitment.

“This latest funding is a testament to the strong investor confidence in our business model as we continue to scale and innovate within the African e-mobility sector,” remarked Josh Whale, CEO of Ampersand. “With continued urbanisation, our mission to electrify transport, cut carbon emissions and drive clean economic prosperity is more crucial than ever.

The investments have been made ahead of the company’s Series B round and have been earmarked to support the expansion into East Africa.

“This additional investment will accelerate the rollout of our EV energy technology and infrastructure to the mass market, bringing us closer to our goal of deploying five million electric motorcycles by 2033,” Whale added. “As we look ahead to our upcoming Series B, we remain committed to reshaping how Africa moves by delivering affordable, low-carbon transport solutions that also drive green jobs and economic growth across the continent.”

E-mobility in the spotlight

Eva Yazhari, managing partner, Beyond Capital Ventures, commented, “Ampersand’s comprehensive approach to e-mobility in Africa exemplifies exactly the type of highly scalable solution Beyond Capital Ventures seeks to invest in. Among the e-mobility companies we evaluated, Ampersand stood out for its robust technology, strong market traction, and clear vision for transforming transportation networks across the continent. We view Ampersand as a climate and infrastructure play and by backing Ampersand, BCV's primary goal is to contribute to increased economic development and the growth of capital markets in the region.”

Ampersand’s heavy-duty commercial motorcycle fleet already covers 3,000,000 km a week in Kigali and Nairobi, according to the company. Its AI-enabled smart battery technology allows drivers to exchange batteries within minutes at the nearest ‘swap-station.

“We chose to be part of Ampersand’s growth capital because we found that commercial boda boda riders wanted Ampersand’s bikes for their strength, design and battery swapping convenience – not to mention that Ampersand is an early entrant to the electric motorcycle markets in Rwanda and Kenya,” surmised Phil Dyk, founder and managing partner at Everstrong Capital.

Ampersand is not the only e-mobility that has recognised the opportunity presented by the East African market as Spiro has recently officially launched operations in Uganda. Click here to find out more.

Since inception, AIIM has raised more than US$4bn over eight funds and executed more than 70 transactions in target pan-African markets. (Image source: Adobe Stock)

Finance

African Infrastructure Investment Managers (AIIM), Africa’s largest dedicated sustainable infrastructure equity manager, has announced the final close of its fourth pan-African infrastructure fund which achieved its hard cap, with US$748mn raised

The African Infrastructure Investment Fund 4 (AIIF4) raised the funding from a diverse investor base across Africa, Europe, Canada, US, Middle East and Asia with an additional US$206mn approved for co-investments alongside the fund.

According to AIIM, in doing so the fund has exceeded its target by 50% with more than half of the capital coming from new investors. This has been taken as a demonstration of the strong show of support for the Fund’s thematic strategy, its team and regional experience, and its high-quality cornerstone portfolio.

AIIM has indicated that through the AIIF4 mandate, the organisation is doubling down on its commitment to tackling climate change by setting decarbonisation and energy efficiency goals and maximising emissions avoidance opportunities through renewable energy deployment for each investment. The Fund is also a 2X Challenge Fund through AIIM’s strategies to enhance gender diversity across its investment teams and the management teams across portfolio companies.

“Given the challenging global fundraising environment, we are delighted to have outperformed the targeted fund size,” remarked Paul Frankish, AIIM’s head of strategic initiatives. “We received strong support from our existing investor base with a high level of re-ups from the supporters of our previous mandates which served to anchor the fundraising. We have also seen many new investors seeking to diversify their investment allocations into new markets which they consider provide strong long-term growth potential, as well as seeking investments with well-defined sustainability and impact strategies.

“These investors have all sought to enter Africa, as a new market with high growth and impact potential, alongside AIIM due to our long track record in the region and strong on-the-ground local presence.”

Olusola Lawson, AIIM's managing director and co-CEO, added, “In developing the strategy we have focused on key themes which provide investors with long-term growth driven by structural deficits and secular tailwinds rather than volatile macro-economic cycles. This includes digital infrastructure, to capitalise on the surge in data consumption across the continent; energy transition, to address the chronic shortage of affordable power and the associated productivity losses for Africa’s corporates; and transport, ports and logistics, to meet the demands for moving goods and people through the world’s most rapidly urbanising cities. All investments by the fund are specifically tracked against climate, gender and governance objectives.”

Earlier in the year, AIIM achieved financial close on two wind farms in South Africa to supply renewable energy for Rio Tinto’s operations. Click here to learn more.

AFC is arranging a project development facility to support Africa’s largest gas-to-methanol plant. (Image source: AFC)

Manufacturing

Africa Finance Corporation (AFC), a leading infrastructure solutions provider, has announced that it is arranging a project development facility to support Africa’s largest gas-to-methanol plant

The aim of the project (located in Akwa Ibom, Nigeria) is to significantly reduce CO2 emissions by offsetting flaring of natural gas and turning it instead into a valuable chemical for solvents, paints, plastics and car parts. It will target producing an initial 1.8mn tonnes per annum (MTPA) of methanol and is expected to generate more than 18,000 jobs. Moreover, it will allow the West African country to minimise the environmental impact of exploiting its vast natural gas reserves, assumed critical to the economic development of the country.

“This innovative project is transforming an immense negative for Nigerians into a very significant positive by harnessing this country’s abundant gas reserves as a unique opportunity to become a global leader in low-carbon manufacturing and energy systems,” said Samaila Zubairu, president and CEO of AFC. “This strategic collaboration with Blackrose and IFC underscores our dedication to supporting Africa’s pragmatic transition to net zero, emphasising rapid industrialisation, local job creation, and socio-economic advancement through the production of methanol, a versatile and low-carbon industrial feedstock.”

AFC has committed development stage financing to de-risk the project and enable it reach financial close, along with providing financial advisory services to the sponsors to raise the required project financing and support successful delivery of this transformational project. The venture is led by Blackrose, a project development and investment firm, and co-developed with the International Finance Corporation (IFC), the private sector arm of the World Bank Group, which are co-financing alongside AFC.

A global leader in low-carbon manufacturing

According to AFC, the project will be implemented in two phases. The first phase will produce low-carbon methanol, a chemical essential to the manufacturing of hundreds of everyday products and a lower emissions alternative fuel used in hard-to-decarbonise sectors.

Phase two of the project will expand methanol production to include ammonia, a critical feedstock for fertiliser production. Both phases will have an installed capacity of 1.8MTPA.

By utilising best-in-class energy efficient production methods, the plant will achieve a much lower net carbon intensity compared to traditional methanol synthesis techniques, while also reducing CO2 emissions by converting gas that would otherwise have been flared. Additionally, the project incorporates plans for carbon capture and offset strategies as well as the use of external hydrogen to bring targets even closer to carbon neutrality.

Most Read

Latest news