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Red Sands to bolster Northern Cape grid

Energy

South Africa’s Red Sands battery energy storage project (BESS) has achieved financial close

The 153MW/612 MWh project, led by Globeleq and African Rainbow Energy, becomes Africa’s largest standalone BESS facility to reach the financial close milestone.

It follows the signing of project agreements between both companies and the Department of Electricity and Energy and the National Transmission Company South Africa (NTCSA).

Globeleq and African Rainbow Energy raised approximately around US$300mn in debt financing from Absa and Standard Bank.

Located near Upington in South Africa's Northern Cape, the Red Sands BESS will span approximately five hectares and supply electricity to NTCSA under a 15-year power purchase agreement.

The project includes significant upgrades to Eskom and NTCSA's grid infrastructure and will help ease transmission and distribution congestion in the region.

China Energy Engineering Corporation has been selected as the engineering and procurement contractor, with the BESS technology and long-term service agreement provided by Sungrow, a global leader in inverter and energy storage system solutions.

“Financial close on Red Sands BESS is a pivotal step in delivering Africa's largest standalone battery storage project,” said Globeleq's CEO Jonathan Hoffman.

"With strong backing from Absa and Standard Bank, and support from our public and private partners, we're advancing a more resilient, low-carbon power system.”

Johan Koorts, senior banker, resource and project finance at Absa, said the transaction demonstrates the bank’s commitment to Africa’s energy transition goals and will support the reliability and efficiency of electricity supply in South Africa.

Sherrill Byrne, head of project finance, energy and infrastructure at Standard Bank CIB, added: “This project is set to significantly enhance South Africa's energy requirements and contribute to grid stabilisation."

Globeleq, which led the development and financing process, will manage the project during construction and into operation through a subsidiary, Globeleq South Africa Management Services.

The project was originally developed by African Green Ventures and later acquired by Globeleq in 2023.

Red Sands BESS will be its second utility scale BESS in its renewable portfolio, adding to its 13 solar, wind and hybrid PV plus BESS plants in South Africa, Mozambique, Kenya and Egypt, plus the Menengai geothermal plant, currently under construction in Kenya.

Read more:

Globeleq advances Kenya Menegai geothermal

Globeleq to support Zambia hydro project

Gllobeleq signs up Sungrow for Red Sands project

 

Pictured (left to right): Général Birame Diop, Armed Forces Minister (Defence), with Franziska Cusumano, CEO Mercedes-Benz Special Trucks at Daimler Truck and Cheikh Ibrahima Cisse, President GTS Senegal. (Image source: Daimler Truck)

Construction

Daimler Truck has signed a Letter of Intent with Global Truck Systems (GTS) to establish a local truck assembly plant in Senegal
 
As part of the agreement, Daimler Truck will serve as the exclusive supplier of dismantled truck kits (CKD – Completely Knocked Down) and act as the project’s technology partner. GTS will lead the assembly operations, in a joint venture with the Senegalese government.
 
Production is expected to begin as early as 2026, with vehicles reaching customers the following year.
 
The plant will assemble various Mercedes-Benz truck model series, tailored for government use — such as the Ministry of Defence, fire brigades and police — as well as private sector needs including waste collection, construction, logistics, and transportation.
 
“The CKD delivery, transfer of know-how and technical support reflect our partnership-based approach with the German Federal Government and the Republic of Senegal,” said Franziska Cusumano, CEO of Mercedes-Benz Special Trucks.
 
The Senegalese government is supporting the project by providing industrial land, offering customs and tax incentives and facilitating local workforce training. The project aligns with the country’s broader strategy to expand domestic production and meet growing mobility needs.
 
GTS will take an operational lead on the project and be responsible for setting up and running the assembly plant. This includes recruiting and training personnel, planning production facilities, assembling vehicles from CKD kits and equipping them with specialised bodies such as cranes or container frames. GTS will also oversee sales operations.
 
Daimler Truck will ensure a reliable supply chain, enforce quality standards and manage technology transfer under the agreement. It will also provide long-term service support, ensuring the quality of locally-assembled vehicles.
 
Michael Dietz, CEO of Daimler Truck Middle East/Africa, said that through this strategic partnership, the three partners are laying the groundwork for sustainable automotive manufacturing in West Africa. “This project signals our long-term commitment to West Africa,” said Dietz. “Through local assembly, job creation, and technology transfer, we aim to contribute to regional economic development.”
 
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FLS and University of Newcastle launch energy-saving conveyor in Africa mine. (Image source: FLS)

Mining

An African mine will be among the first adopters of the innovative Rail-Running Conveyor (RRC) technology, commercialised by full flowsheet provider FLS in collaboration with the University of Newcastle, Australia

Designed to dramatically reduce energy consumption, improve safety and cut capital and operating expenditure, Rail-Running Conveyors are a gamechanger for mines which must rely on extended conveying distances to move material. Any mine that carries substantial tonnages over more than 500 to 1,000 m can achieve far higher efficiencies using this technology.

The first full-scale operational system will be commissioned in southern Africa in mid-2025. It is designed to carry 5,000 mtph of copper ore over a 3,25 km run, and is expected to save approximately US$1mn each year in power costs when compared to a conventional trough conveyor.

A second system, destined for the same mining customer at a mine in the Americas, has also been under construction and will carry around 13,000 mtph, also delivering significant power savings and safety improvements.

The energy losses incurred by an RRC is anything between one-fifth to one-tenth of those experienced by traditional trough and pipe conveyor systems respectively. The friction losses on a conventional long distance conveyor largely determine the power capacity that must be installed, the size of the structures required and the downtime incurred to maintain and replace pulleys and drives. Reducing these energy losses therefore has a positive knock-on effect on the costs of a range of other aspects.

Customers achieve savings on the scope of the conveyor equipment itself, the cut-and-fill civils requirements, the volumes of concrete used, the strength of the belt and the number of drive stations necessary. Due to the lower tension acting on the conveyor belt, a lower rating of belt is possible. Faster speeds and a deeper trough also mean that a narrower belt may suffice for the same throughput. Importantly, the rating of the drives does not need to be as high.

Where a 6MW drive may be specified for a conventional conveyor, for instance, this technology may allow a 2MW drive to be installed. This then has further positive impacts on the ratings required for motors, transformers, E-houses and power supply.

The head and the tail of an RRC remain the same as in traditional systems with the rail-running section making up the bulk of the distance. The basic mode of transport is steel-wheel-on-steel-rail instead of a belt running over idlers. This fundamental difference is what cuts energy consumption so drastically.

The system uses small carriages to carry the belt and these are automatically exchanged at maintenance houses when required. This removes the safety risks associated with personnel changing out idlers out along the length of the conveyor. Having fewer transfer points also has a safety benefit as these can be sources of injury during maintenance as well as health threats from dust exposure.

African Development Bank funds feasibility for Rwanda’s US$100mn cable car to improve urban transport access. (Image source: AfDB)

Logistics

The African Development Bank (AfDB) has approved a US$500,000 grant to fund a feasibility study for Kigali’s proposed aerial urban transit system, set to become sub-Saharan Africa’s first cable car network

The initiative is being spearheaded by Ropeways Transit Rwanda Ltd (RTRL).

The funding comes from the Bank’s Urban and Municipal Development Fund (UMDF) and will support the development of the Kigali Urban Cable Car Project. Valued at US$100mn, the 5.5 km transport solution is designed to alleviate traffic congestion, cut greenhouse gas emissions, and improve access to jobs and essential services for underserved communities.

Hosted by the African Development Bank, the UMDF provides technical assistance and financial support to cities, helping them identify and prepare investment-ready urban projects.

Phase 1 of the project will cover two main routes: from Nyabugogo Taxi Park to the Central Business District, and from the Kigali Convention Center to Kigali Sports City, passing key landmarks such as Amahoro Stadium, BK Arena and Zaria Court.

The feasibility study aims to attract international investment, potentially through platforms such as the Africa Investment Forum (AIF). UMDF has previously supported Rwanda’s Kigali Urban Transport Improvement Project to enhance investor confidence in the transport sector.

Construction is expected to begin in late 2026, with commissioning planned for 2028. Once operational, the system could carry over 50,000 passengers daily on a 15-minute end-to-end journey, fully integrated with Kigali’s broader transport network.

African Development Bank Group president Dr. Akinwumi Adesina said, “This transformative project aligns perfectly with the Bank’s vision for sustainable, green climate-resilient urban mobility infrastructure, and with the Bank’s Ten-Year Strategy, which focuses on urbanisation, and the Alliance for Green Infrastructure in Africa (AGIA), a global partnership initiative driven by the African Development Bank Group, Africa50 and the African Union. By financing Rwanda’s urban cable car system, we are investing in a scalable model of low-carbon, inclusive public transport that cities across Africa can emulate.”

The project also supports Rwanda’s climate targets, as outlined in its Green Taxonomy, E-mobility Strategy and Climate and Nature Finance Strategy, aiming to cut emissions by 38% by 2030 and reach carbon neutrality by 2050.

The cable car project will be implemented under a Public-Private Partnership (PPP), according to Imena Munyampenda, Director General of the Rwanda Transport Development Agency.

The feasibility phase will draw insights from successful cable car systems in cities like La Paz, Bolivia and Singapore, and will incorporate inclusive design principles for disabled access and employment opportunities for women, low-income groups, and youth.

Blended financing model

The project’s US$100mn financing will include grants, concessional loans, blended capital, and technical assistance. The UMDF grant will specifically support assessment of the viability gap. The Rwandan government will partner with the African Development Bank Group and others including IFC, Africa50, TDB, AFC, and private investors under the AGIA to structure blended and commercial finance.

South Africa has entered into a US$1.5bn loan agreement with the World Bank to support the revitalisation of its transport and energy infrastructure and stimulate economic recovery, the National Treasury announced recently

For over ten years, Africa’s most industrialised economy has faced stagnation, hindered by ongoing power outages that have reduced productivity and deteriorating rail systems and port congestion that have impacted key industries like mining and automotive manufacturing.

The government expects the loan to help alleviate transport constraints and bolster energy security, although it has not disclosed which specific projects the World Bank funds will support.

The loan is expected to help manage the country’s rising debt-service burden by offering more favourable conditions than those available in commercial markets, including a three-year grace period.

State-run utilities Eskom and Transnet, responsible for energy and transport respectively, have faced long-standing operational and financial difficulties, contributing to the country’s sluggish growth, which stood at only 0.1% in the first quarter.

The Treasury stated that the interest rate on the 16-year loan from the World Bank is the six-month Secured Overnight Financing Rate plus 1.49%.

This facility is distinct from another US$500mn in funding that the World Bank Group is considering to help mobilise private investment in South Africa’s electricity transmission infrastructure, which needs to be expanded to accommodate more renewable energy projects.

Last month, Finance Minister Enoch Godongwana outlined a budget that includes over 1 trillion rand (US$55.5bn) in investment across sectors including transport, energy, water and sanitation, aimed at driving growth and improving public services.

It aimed for public debt to peak at 77.4% of gross domestic product in the current fiscal year, slowly declining after that.

Jumia opens 27,000 sq m smart warehouse to boost Egypt e-commerce logistics

Manufacturing

Jumia, Africa’s leading e-commerce platform, has taken a significant step in reinforcing its presence in Egypt with the inauguration of a new integrated warehouse on Suez Road, Cairo

This development marks one of Jumia’s largest investments in the country and demonstrates its continued confidence in Egypt’s strategic role in Africa’s economic and logistical landscape.

Spanning over 27,000 sq m, the new facility is designed to optimise Jumia’s logistics capabilities by improving storage efficiency and speeding up deliveries, particularly to Upper Egypt. The warehouse is equipped with advanced smart systems that enhance order processing and customer satisfaction. As a key component of Jumia’s logistics infrastructure, the centre supports the company’s future expansion and aims to better serve merchants and consumers across the country.

This investment aligns with Jumia’s mission to boost Egypt’s digital economy and enhance its service offerings. It will also provide tailored logistics solutions for local manufacturers and merchants, reinforcing the platform’s support for domestic production.

The warehouse is projected to generate up to 10,000 direct and indirect jobs over the coming years, solidifying Jumia’s contribution to national economic development and youth empowerment.

Prime minister Dr Mostafa Madbouly commended the initiative, remarked, "We welcome this move by Jumia, which reflects the trust that major global companies have in Egypt’s investment climate. We look forward to more partnerships that support the state's goals in digital transformation, the development of logistics infrastructure, and the provision of job opportunities for Egyptian youth."

Abdel Latif Olama, CEO of Jumia Egypt, expressed his appreciation for the government’s support, stated, "We are proud of this achievement, which reflects Jumia’s long-term investment commitment in Egypt. We view Egypt as a strategic hub for our operations in the region. This warehouse represents a qualitative leap in the level of services we provide to our customers and partners, and it supports our vision of becoming an integrated platform that combines technology and logistics across the continent. It will also contribute to our growth in the Egyptian market."

Egypt also plays a critical role in Jumia’s tech ecosystem, hosting one of its largest technology hubs on the continent. This centre is home to a skilled team of engineers and developers who are building digital tools and logistics solutions to support operations across Africa.

During the inauguration, Olama delivered a presentation detailing Jumia’s impact in both Egypt and broader African markets. He also outlined plans for future expansion, reaffirming Egypt’s strategic importance to the company.

The launch of this facility is part of Jumia’s wider expansion strategy aimed at strengthening its infrastructure across Africa. Similar logistics centre s have already been established in Nigeria, Ghana, Ivory Coast, and Morocco, reinforcing the company’s role in advancing digital commerce and economic development across the continent.

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