How to Tap into South Africa’s 855 Billion Rands Water Investment Requirements

With Rise of the world temperature expecting to generate more and longer periods of drought, South Africa is rethinking its water resource management policy to:

  • Meet demand with supply
  • Modernize and reinforce current infrastructure
  • Implementing more sustainable policies

South Africa investment needs for the next decade is estimated at R. 855 Billion. Main opportunities for businesses are:

  • Industrial water reuse & resource recovery water and energy
  • Smart water use
  • Groundwater and managed aquifer recharge
  • Desalination
  • Water sensitive design for rain and storm water

 

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Can Cape Town be a future laboratory for sustainable water resource management?

Like many children of my generation, I have spent probably too much time in front of screens. Nevertheless, few programs I was lucky enough to see made a huge impact on my life and shaped my personality. Strangely, one of them was the inauguration of the “Grande Arche” in Paris business district “La Defense” in 1992. I was only 12 years old.

A concert was given and one song attracted my attention more than others “Being born somewhere” from the singer Maxime Le Forestier. A video played in the background showing African refugees escaping war, hunger and environmental catastrophes. I vividly remember one reporter highlighting the fact that if Europeans did not support conditions for development in African countries, Europe will face unprecedent pressure on its borders and no rule of law will prevent this movement. The image of African immigrants fleeing misery shocked me to date, and probably contributed early on to my convictions about the world, and the role I could play in it.  Unfortunately, this scenario has become reality.

This childhood memory came back to my mind recently when I was made aware of the water crisis in Cape Town. Despite the gravity of the situation and potential economic, environmental and political consequences over all of South Africa, only few deep analyses were provided by the mass media.

One thing that is always overlooked is the potential for Africa to become a laboratory of new solutions. The continent will face unprecedent challenges in the decades to come: growing number of cities over one million inhabitants; very young populations and pressure on natural resources.

South Africa is the most developed country in Africa. Cape Town is the envy for many European cities: gorgeous weather, amazing landscapes and vibrant culture. I would gladly live there. Nevertheless, like many big cities a fragile equilibrium between different patch of population ensures that everybody enjoys the city. This balance is being questioned now and threatened.

Should we all be concerned by this situation in Cape Town?

We can always concentrate on the political aspects of the situation and blame local government for not anticipating enough for future issues, and for not taking the appropriate measures to avoid drought.

Nevertheless, I would like to go beyond politics and look at Cape Town as a new addition to the growing number of localities, having to develop new inventive solutions to meet the growing demand of populations. With scarce water resources and low rainfall, WWF predicts that two degrees increase in global temperature will mean four degrees increase in South Africa, which will contribute even more to growing periods of complete drought.

Cape Town is an interesting example to follow for Western countries as this city is as close as it can be to our modern cities, in particular Mediterranean cities.  The challenges faced by this city is well summarized by Nomvula Mokonyane, Minister for Water and Sanitation, in her 2015 speech to Parliament:

In order to achieve (our) strategic priorities we have realised that there is a need  for increased impetus and pace. This calls for a revolution, a water and sanitarian revolution to reclaim and better manage our water in order to tackle the triple challenges of inequality, poverty and unemployment”.

As Europeans, we should not overlook the water crisis in Cape Town, as so many learnings can come from the solutions implemented and future failures, that will be necessary to pave the way to reaching a sustainable management of water resources.

Sonia Galat,

CEO Africa Business Venture

Starting as an Independent Power Producer in Cote d’Ivoire

“Strategic plan  ‘Vision 2040’ adopted in 2011 with main objective for Cote d’Ivoire to become an industry-driven economy, united in its cultural diversity and democracy and open to the rest of world.”

~ President A.Ouattara

Yesterday we hosted one of our hugely successful monthly webinars and this month’s topic is about “Starting as an independent Power Producer in Cote d’Ivoire”. The guest host for this session was Mr. Toure Sultan Abdoul Karim, who is the Directory of Programming of Public Investments for the Ministry of Planning and Development, Cote d’Ivoire.

In today’s article, we will outline what was discussed.  If you are business owner looking to invest in Africa, this is very much for you.

The Cote d’Ivoire Government has an ambition to become an industry-driven economy that is open to the rest of world.

Cote d’Ivoire:

Cote d’Ivoire new energy policy has the following objectives:

Investments in the energy sector are at the centre of the strategy for Cote d’Ivoire to become an emerging market.

  • To generate sufficient electricity and demand side management
  • To increase installed capacity by approximately 150 MW each year
  • To diversify the generation mix, which currently depends heavily on domestic natural gas
  • To increase participation of independent power producers (IPPs)
  • To improve the institutional framework
  • To restore the financial viability of the energy sector – tariff adjustments and loss reduction

A new energy policy, adopted in 2013 aims to:

  • Increase renewable energy share in national energy mix from 1% in 2015 to 16% in 2030
  • Diversify energy production sources from 80 % fossil fuel and 20 % renewables in 2015, to 66 % fossil fuel and 34 % renewable in 2020
  • To 58 % fossil fuel and 42 % renewable energy in 2030

Foreign companies are invited  to participate via tender process submission and direct approach:

The Public Tender process:

Company independent project submission:

This procedure is mainly used for electrification projects.

In order for you to make a spontaneous proposal to the Ministry of Energy for a planned project, you will need to:

  • Submit a technical and financial offer to Management of the structure of the project
  • The offer will be assessed by the relevant authorities
  • Once approved, a discussion regarding possible clarification and or negotiations will be held
  • From here, a signature of approval by the authorities will mean your project has been approved

Cote d’Ivoire Investment Zones & VAT:

In order to boost investments, an attractive investment regime has been developed.

There are 3 investments zones regimes that have been created with benefits granted for each of them

  • In the investment phase, there is between 40-50% reduction in the amount of custom duties that are paid for equipment, materials as well as first batch of spare parts
  • There is also total exemption from VAT – see below:

Cote d’Ivoire’s Investors Protection:

There are sixteen specific guarantees when you invest in Cote d’Ivoire.  The key guarantees (by Law) we would like to highlight are:

  • You are offered the freedom to invest
  • You have equal rights
  • You have freedom to access foreign currencies
  • You have stability of benefits
  • You will not need to be nationalised and there is no risk of expropriation
  • Your private property is protected

To see full list of investment guarantees, see our full presentation here.

Thank you for your interest in Africa Business Venture, we welcome any questions or enquiries so please do not hesitate to contact us now.

SONIA GALAT

Co-Founder & CEO, ABV