Generators are continuing to play a role as an essential piece of equipment on the continent, helping it achieve its predicted economic potential
In today’s world, there are few regions which are regarded to have as promising a future as Africa. While this of course encapsulates a wide spectrum of countries and markets, and, indeed, this is not the first time the continent has been projected as a future economic juggernaut, its ability to weather the storm of the pandemic has left more commentators assured of its positive trajectory.
According to the African Development Bank’s (AfDB) Africa Economic Outlook 2023, the shocks of the pandemic and war in Europe have weighed on the continent’s momentum with growth in real domestic product (GDP) estimated at 3.8% in 2022, down from 4.8% in 2021. However, this growth is still above the global average of 3.4% and all but two countries in Africa posted positive growth rates. The bank noted that, despite significant headwinds, Africa has shown remarkable resilience and its outlook remains positive and stable with a projected rebound to 4% in 2023, up to 4.3% in 2024. As part of this, 18 African countries will experience growth rates surpassing 5% in 2023, and 22 in 2024.
There are many avenues and instruments to be addressed and pursued in order to realise and build on this potential, however at the top of this list is something the continent has – and continues to – struggle with to this day: power. Without a sufficient and reliable supply of electricity, all sectors of a country will struggle to grow and compete in the modern world. This point has been most keenly demonstrated in southern Africa where, according to AfDB, growth has decelerated to 1.6% in 2023. This dip is largely the result of developments in South Africa where the country is grappling from persistent power outages stifling virtually all industries from retail and services to manufacturing and mining.
With power at the top of list of priorities for countries and companies operating across the continent, a full spectrum of solutions is being deployed, from extensive geothermal engagement in the East, to a renewed interest in solar in the West. While the capacity around such sources is built, however, it is the tried and tested diesel generators – in the face of grid unpredictability – that are providing a lifeline for businesses to function and a platform for the continent to grow.
It is no surprise, therefore, that the market for diesel generators continues to thrive. According to research from MarkNtel Advisors, the continent’s diesel generator market is projected to grow at a CAGR of around 5% during the 2022-2027 period, driven primarily from infrastructural development projects and the need to meet daily energy requirements through small-capacity diesel generators. In addition, many of the continent’s key industries such as mining, construction and oil & gas cannot function effectively without uninterrupted power supply, and diesel generators provide one the most reliable means of achieving that. Other market commentators, such as Grand View Research, has estimated an increase above 6%, pointing especially at the rise in data centres across the region as a point for high growth.
Indeed, there are no shortages of examples relating to generators being purchased, delivered and installed across the continent. By example, for an IKEA store in Morocco, HIMOINSA has delivered two new generator sets (one HDW-750 T5 Doosan engine and one HFW-125 T5 Iveco engine) to cope with possible power failures and guarantee a stable power supply. In, Egypt, Kohler celebrated the supply and installation by its partner for four units of 3000KVA PRP 11KV, one KD1100F 400V and one V550 400V at a multipurpose terminal in Alexandria port. The company also supplied and installed two genset 1900KVAs equipped with ISO 40 FT Container with fuel system for a Tier 3 Data centre in the country.
Ghaddar Machinery, meanwhile, has delivered the first batch of a project with a total capacity of 14MW for the Ministry of Energy in Sierra Leone. Ghaddar Generators powered by Cummins KTA50-G3 & KTA19-G4 engines and Leroy Somer LSA50.2M6 & TAL0473C alternators will be distributed across seven stations across the country. Zest Weg has also made headlines by agreeing to manufacture and deliver a complete substation E-house with distribution transformers and a diesel generator set to Sasol in Mozambique. The package, to be completed in the last quarter of 2023, will include one 1,250kVA Zest Weg diesel generator set for backup power which will be manufactured at its facility in Cape Town.
