Tag: growth

Egypt set for energy revolution with innovative solar strategies

Egypt is undergoing an energy revolution, with the share contributed by renewables set to soar. Innovative solar strategies form a central part. 

“The Gulf States have oil; we have solar,” remarks Ahmed Zahran, CEO of the Cairo-based Egyptian solar company – Karm Solar – leaning against the window of a six-story office building in the leafy streets of Cairo’s affluent Zamalek neighbourhood.

Aswan in Upper Egypt ranked the third most sunny place in the world by the World Meteorological Organisation, proves his point.

As Egypt reimagines itself in the wake of the 2011 revolution, the country’s power mix is undergoing a transformation, too. Egypt’s current installed electricity capacity is around 42GW, of which 91% is backed by fossil fuels, the rest renewables. The government, however, envisages a rebalancing, with renewables responsible for 20% by 2022 and 37% by 2035. Solar, alongside hydro and wind, will be the driving force behind this capacity shakeup.

In fact, analysts have argued that if the solar market continues its upward trend, the government projections may turn out to be modest, with the International Renewable Energy Agency predicting that solar alone could contribute as much as 44GW by 2030 – making it the second largest energy source after gas.

Largest solar park

Benban solar park – located just north of Aswan – is set to be the world’s largest solar complex, and after some initial difficulties the project is shaping up as a trailblazer. Comprised of 41 individual solar photovoltaic plants, the park is expected to contribute around 1.6-2.0 GW of power by mid-2019.

In recent years, the Egyptian government has utilised two distinct models to drive investment into solar: feed-in tariffs (FiTs) and competitive tenders. FiTs work on the basis of a set price paid to the producer over a number of years, meaning that the price of the energy is not market-based, and therefore acts like a subsidy.

Benban solar park is the result of a two-round FiT scheme beginning in 2014. After initial interest from a German and Egyptian developer, contracts stalled when the Egyptian government insisted that any arbitration must be held on Egyptian soil. This was amended in the second round of the FiT, and a large consortium of public capital led by the European Bank for Reconstruction and Development (EBRD) stepped in to finance almost all of the projects, which are due to receive $78 per megawatt-hour under a 25-year power-purchase agreement.

In total, 16 development finance institutions (DFIs) are supporting Benban to the tune of $1.8bn, including the International Finance Corporation, the African Development Bank and the Asian Infrastructure Investment Bank.

With the projects underway, the experience is seen as a leading example of crowding in a consortia of development financiers. Furthermore, its developers, faced with logistical challenges and grid constraints, have joined hands to create the Benban Solar Developers Association – soon to become an NGO. Rarely do private solar-developers work effectively together to overcome challenges in the context of competitive emerging markets.

“In many ways Benban is an excellent case study of ways to support large scale renewable infrastructure projects, with a wide body of players and participants coordinating a joint effort,” comments Benjamin Attia, global solar markets analyst with Wood Mackenzie. “The market is now finally booming.”

Going once

With Benban due to come online this year, attention now turns to two competitive tenders: 200MW in the Kom Ombo project in Aswan, and 600MW of capacity in the West of Nile Area. This change in government policy away from FiTs mirrors a global change in strategy to drive investment into solar energy. Some have accused subsidies and government incentives of curbing the European and North American solar markets, arguing that they create unsustainable business models that rely too heavily on government support.

Tenders, otherwise known as auctions, allow governments to define a particular project – including its proposed capacity and sometimes the location – and then invite producers to bid for it. It is the competition associated with the bidding process which results in the market-based price of the energy, and hence the instruments’ growing popularity. The Egyptian Electricity Transmission Company reviewed six bids for the Kom Ombo project, with a Saudi Arabian company outbidding a Spanish developer.

While the jury is still out on the most effective model, Attia explains how competitive tendering can be a useful tool for solar expansion.

“The best way we have seen on a global scale is to create very transparent and regularly cadenced tender schemes,” he says. “Subsidies are no longer necessary for solar projects, particularly in the Middle East, as these are some of the lowest cost projects in the world. When the ticket size is large and the barriers to entry are low – and there are good governance and bankability – these large tenders can draw in big balance sheets from around the world.”

Private sale

Selling energy to government, however, is not the only way to help solar reach its full potential in Egypt. Cairo-based solar company Karm Solar is offering an alternative model: one that produces solar energy and sells it to the private sector.

“What we are doing which is new, even on a global level, is we are able to produce the electricity from central solar stations, and ship that electricity to a distribution network which we own to then sell at the doorstep of shops, offices or houses,” says Ahmed Zahran, founder and CEO. “We are the first company in Egypt to obtain a licence for the generation and sale to the private sector.”

The company has grand production and distribution ambitions, and currently services 15 private clients with a capacity of 73MW. The Egyptian market, Zahran argues, is the most coveted in the region and is ripe for a business model like his, which is motivated by profit rather than incentives. In fact, Karm Solar sell their energy at a cost lower than government prices, he says, and have thus far been almost entirely financed by angel investors.

“We own everything to make sure we are completely in control of the product we are delivering and in control of the costs,” he says. “That’s the only way to be in control of the returns that we want to achieve.”

As the government target of 20% renewables by 2022 looms on the horizon, both the public and private sectors are exploring innovative solar strategies which should convincingly see this target met.

Contribution to Tom Collins (African Business Magazine)

Ethiopia: How Investment in Irrigation Is Paying Off for Ethiopia’s Economy

After rapid economic growth averaging 10%every year between 2004 and 2014, Ethiopia has emerged as an engine of development in Africa.

And there are no signs that ambitions for further growth are fading. This is clear from the government’s blueprint to achieve middle-income status – or gross national income of at least US$1006 per capita – by 2025. This would see a rapid increase in per capita income in Ethiopia, which is currently US$783, according to the World Bank.

Ethiopia’s growth has been propelled by at least two factors: the prioritisation of agriculture as a key contributor to development and the fast-paced adoption of new technologies to boost the sector.

A third of Ethiopia’s GDP is generated through agriculture, and more than 12 million households rely on small-scale farming for their livelihoods.

One of the drivers of growth in the agricultural sector has been the expansion of irrigation. The country has seen the fastest growth in irrigation of any African country. The area under irrigation increased by almost 52% between 2002 and 2014.

This was achieved by investing in the sector, and by harnessing technology to expand irrigation to farmers who traditionally relied on rainfall to water their crops. This boosted productivity and income for farmers by helping them extend the growing season and become more consistent in their production.

Meanwhile, only 6% of arable land is currently irrigated across the whole of Africa. This means that there’s huge potential to expand irrigation and unlock economic growth.

These factors are highlighted by a new report from the Malabo Montpellier Panel. The panel convenes experts in agriculture, ecology, nutrition and food security to guide policy choices by African governments. The aim is to help the continent accelerate progress towards food security and improved nutrition.

The panel’s latest report analyses progress – and highlights best practice – in irrigation in six countries. These include Kenya, Mali, Morocco, Niger and South Africa. Other African countries can draw lessons from the report’s insights.

Reasons for success

The report identified a number of common factors in countries where significant progress has been made to expand irrigation, including key policy and institutional innovations.

In the case of Ethiopia, one of the main reasons for its success is that agriculture and irrigation have been featured on the Ethiopian policy agenda since 1991. In addition, specialised institutions have been set up with clear commitments to maximise the benefits of water control and irrigation systems.

In addition, the government has invested in the sector and has plans to continue doing so. It aims to allocate US$15 billion to irrigation development by 2020.

The investment is expected to deliver a number of returns. These include: more efficient use of fertilisers, a reduction in the seasonal variability in productivity and better yields from irrigated crops grown.

Another major area of development has been the collection of data. This is an invaluable asset that allows for careful monitoring and management of resources such as water, especially in times of drought.

In 2013, Ethiopia’s Agricultural Transformation Agency began mapping more than 32,400 sq kms to identify water resources, particularly shallow groundwater, with the potential for irrigation development.

The final results of this mapping in 89 districts revealed nearly 3 billion cubic metres of water at a depth of less than 30 meters. This could allow approximately 100,000 hectares of land to be brought under irrigation, benefiting 376,000 families.

Finally, Ethiopia has harnessed the value of a full range of irrigation technologies. These have ranged small-scale interventions to large infrastructure.

A joint project between the Ethiopian Bureau of Agriculture, local extension officers, and an NGO called Farm Africa, for example, helped women and young people adopt small-scale irrigation. This was part of an initiative to increase their incomes and improve their nutrition.

Overall, the project reached nearly 6,400 women and landless people. The irrigation project also benefited 700 farming families.

NALYSIS 

“Speed up, scale up and synergise”, says Trade and Development Bank chief – Admassu Tadesse

Admassu Tadesse, President, and CEO of the Trade and Development Bank (TDB) – shares his thoughts on the bank’s growth strategy and the prospects for drawing more investment into Africa.

Admassu Tadesse is believed by some to be one of the outstanding bankers of his generation. He has an enviable CV, having attended LSE, Wits and Harvard and having gained experience in banking in the US and South Africa. Like many Ethiopians, he is self-assured and determined. Colleagues say he has a very clear reading of situations. He was catapulted to the head of the Trade and Development Bank (formerly PTA Bank) at 41 and has since assembled a strong team of youth and experience, giving them, as he puts it, the reins to grow the bank.

“Systems are developed by people, systems are managed by people and in the end it’s all about talent and the ability to have an eye for what will work and what will not work,” he says.

Since he joined the bank in 2012, its balance sheet has grown from $1bn to nearly $6bn. To put this into context, the AfDB’s loan book stands at approximately $18bn and that of Afreximbank at $12bn. Over that time, he has managed to bring in a number of institutional partners as shareholders to support its growth, including African pension funds and insurance companies. In 2017 the bank grew 20%, despite a challenging environment. We caught up with Tadesse on the sidelines of the Africa Investment Forum in Johannesburg, where he called for partners to speed up, scale up and synergise to ensure greater investments into the continent. Here are excerpts:

How do you see the current economic outlook on the continent?

The year 2018 has been quite a watershed in many respects. We have seen Zimbabwe reset, we’ve seen Ethiopia reset, we’ve seen Angola reset and we’ve also seen South Africa reset. So these are four very significant countries where the political risk perspective is somewhat improved. We’ve also seen South Sudan sign a peace agreement. We’ve seen Egypt advance its reforms and improve its economic performance and prospects. We’ve to see Sudan come out of sanctions.

That’s seven countries where there have been very significant positive developments. We are not operating in any way in Somalia but Somalia also has a government that’s looking much more robust than in the past. So just generally in Eastern and Southern Africa, there has been a positive development. We are seeing sanctions being removed from Eritrea on the back of the wind of peace that is coming out of the Horn of Africa. So that’s eight very interesting developments. It means that there are more prospects for co-financing projects and opportunities with partners.

And the investment picture in your East African base?

We come from East Africa, which is continuing to grow very strongly. We have Tanzania, Kenya, Uganda, Ethiopia, Rwanda. These five countries are all growing in the range of 5 to 9%, so the average growth rate would be the highest in Africa. Mozambique is beginning to recover and they’ve also now closed one or two big deals on the gas front. All of this adds up and translates into a more interesting set of transactions to come on many different fronts.

Will you continue growing at 20% in the foreseeable future?

We have an asset growth strategy that is scenario based, where growth can range from 5-20% per annum. Our base case, our working plan, is to grow assets, mainly loan and investment assets, at between 10-15% per annum. The low case is 5-10% and the high case is 15-20%. If the business environment is enabling, and we are able to originate healthy assets on a diversified basis we can still do 20% per annum.

Historically, the majority of our loan book has been trading finance, roughly two thirds, and our long-term loan book would range between 30% to 40%. Our strategy is to keep trade finance as being a majority [of our loan book]. You don’t just grow for the sake of it, we are always trying to shape our portfolio that meets certain requirements. The success of any portfolio depends on the geographic base on which it sits.

Which sectors are giving you case for excitement?

We are seeing quite a bit of demand coming through on the resources side, gas and mining. Agri-business is also a continuous area of growth. Trade is back as well, dominated by commodities. And with higher valuations, the volumes of trade have gone up again. So that’s also going to give us some good opportunities for further growth in some of those sectors. The power sector is well poised to attract considerable investment. It is attractive as an investment sector now because the cost reflective tariffs today have moved us beyond where we used to be in the past, where power was so deeply subsidized.

Transport is also a sector where we will see more activity. There are a lot of opportunities for spinning off transport projects, such as toll road based projects.

The speed of execution has been a common complaint from private sector operators with regards to DFIs. How is the organisation adapting to respond to their needs?

We’ve introduced innovations in our organizational structures. We’ve established offices closer to the subregions in order to speed up access to the bank and to have people residing in the different sub-regions able to receive applications and process them quicker. At the same time, we’ve strengthened our capacity at the centre to actually process the deals, to do the due diligence, prepare the papers, get the approval systems in place. The committees meet much more regularly. So we’ve been investing in a more efficient and quicker business process.

You mentioned that investment rates need to grow. Can you elaborate on what you meant?

We are actually at record levels of FDI and fixed capital formation has improved. At the turn of the millennium, we were all very critical of the levels of investment in Africa.

We were looking at very low numbers and today, there are many countries that are getting very close to 25% and quite a handful that are well above 25 and several above 30. Twenty-five percent fixed capital formation is considered to be an adequate level of investment to help generate 6% growth. But with African population growth at about 3%, we need to be aiming higher. We’ve seen the Asians invest for sustained periods, 35%, 40%, 45% of GDP.

It’s very important that we keep stimulating the discussions around how to regenerate surplus savings so that we can finance more of our own investment, but that is not going to be very easy to do because savings are very low in Africa. The private sector has a domestic, regional and global character and we need much more of that to come in and boost the numbers.

We’ve scaled up already, we are doing much better than we were 10 years ago, but it’s still nowhere near where we need to be. We have to be much more aggressive, much more proactive and innovative in how we do things. We really have to boost confidence internationally to make Africa a very serious investment destination.

Source: African Business Magazine

Rwanda: The Emerging Economy To Watch

In recent years, Rwanda has proven to be a role model for the continent.

During her November 2018 visit to Rwanda, World Bank CEO Kristalina Georgieva described the country as one that has enjoyed impressive growth and often has bold ambitions.

At business summits across the world, it’s not uncommon to hear such praise about Rwanda. Various speakers have singled it out as one of the emerging economies to look out for in terms of investment opportunities, value for money and economic growth.

The statistics explain why Rwanda has become Africa’s poster child for progress. The country has reduced reliance on donations and currently, domestically funds about 84% of the budget up from about 36% two decades ago.

In the last fiscal year (2017-2018), the economy grew by 8.9%.

Barely 24 years after the horrific genocide against the Tutsi, when the East African nation lost over a million lives and the devastation left a trail of trauma and economic ruin, its achievements have often been described as miraculous.

At the center of the tiny country’s recovery is President Paul Kagame, who led the revolt that ended the genocide.

Kagame has led his country from penury to prosperity. His government has co-invested alongside private capital to reduce risk and create a more appealing proposition.

For instance, when one of Africa’s leading telecoms groups, MTN, was keen on entering the Rwandan market in 1998, the government boosted their confidence by purchasing a 20% stake in the company.

This was driven by an ambition to not only attract the firm to the country but to ensure citizens have access to affordable telecom services. Years later, the government offloaded its stake in the firm through an initial public offering, allowing citizens to be part of a meaningful income-generating firm.

MTN is just one example of the strategic approaches taken by the Kagame-led government. The same has been replicated in multiple sectors, including finance and agriculture.

The last two decades on the Rwandan economic front have also been characterized by improving the investment ecosystem to create interest from the international and local business community.

While most would concentrate on the odds against the country, such as its small size, and its landlocked location, amidst a volatile region, Kagame sought to give investors every reason to put their money in Rwanda.

In a continent that has always been associated with corruption, the Rwandan government adopted a zero-tolerance stance on graft.

This was paired with the improvement of service delivery across all sectors, eliminating the need for bribes to access public services.

The most recent Corruption Perceptions Index by Transparency International placed Rwanda as third least corrupt country in Africa.

The reforms have for the last two decades addressed challenges that have often kept investors up at night. Steps that are cumbersome in countries across the world, such as business registration, were eased to a six-hour activity, while tax declaration and registration were simplified to online processes.

The World Bank ranked Rwanda 29th globally in its 2018 Ease Of Doing Business Report and put it second in Africa. The index tracks business efficiency across the wd

Statistics from the RDB indicate there were about 10,488 hotel rooms in the country in 2017, while aviation traffic is expected to grow to about 1,151,300 in 2018, from 926,571 in 2017.

The trend is expected to persist going forward. Rwanda will by the end of 2020 have a new modern airport located in the Bugesera District, a 25-minute drive from the capital.

While pursuing externally-driven growth, Kagame has not forgotten about the home front. This led his government to adopt a ‘Made in Rwanda’ strategy in 2016, which has reduced the trade deficit by about 36% and increased the value of total exports by about 69% from about $558 million to $943 million. Local producers have fast become empowered to produce for the local and export market.

The Rwandan leader has turned his attention to regional integration in the six-member East African Community to counter complaints about Africa’s small, fragmented markets.

The consolidated market of over 200 million citizens is more reassuring to investors and makes a business case for joint infrastructure projects such as the Standard Gauge Railway, which will connect the major Kenyan centers of Mombasa and Nairobi.

Lisa Kaestner, a practice manager for finance competitiveness and innovation at the International Finance Corporation, says: “I see Rwanda is keen on this and trying to support through the East African Community. This is one way to reduce the cost of doing business. If you look at it through the doing business lenses, all countries are trying to improve.”

Kagame’s continental mission has been evident in his various roles at the African Union (AU).

As the chairperson of the AU Reforms team, Kagame has advocated for less donor dependency and more sustainable funding by African states.

He has often challenged African countries who contribute less than 30% of the AU’s budget and turn to external donors with a begging bowl, which has been blamed for influencing the body’s decisions and priorities.

As  AU chair, Kagame has sought an adjustment of terms between Africa and the rest of the world for mutual benefit. This, he has argued, is more sustainable in the long run and presents an avenue for growth among all parties, as opposed to aid, which maintains dependence.

Months after assuming the chairmanship of the AU, in March 2018, Kagame hosted over 50 African heads of state and government in Kigali for the signing of the African Continental Free Trade Area.

As a trade bloc, the trade agreement envisions a continental market of 1.2 billion people, with a combined gross domestic product of more than $3.4 trillion.

So far, 49 countries have signed the agreement, with nine ratifications. The development is a huge step towards encouraging industrialization and job creation across Africa.

Peter Mathuki, Executive Director of the East African Business Council, says: “The country’s leadership is on the grip to lift the EAC country to middle-income level faster than most African countries. The fast economic growth is premised on pillars of good governance, easy-to-do business climate and zero tolerance to corruption… Rwanda is indeed Africa’s rising star and driver for economic transformation.”

Credits to Collins Mwai and the publication in Forbes

Making African agriculture more attractive for investors

While global population growth slows, Africa’s population is set to double over the next three decades, reaching around 2.2bn people by 2050.

This surge in numbers will have significant ramifications for the continent’s food security, which is already under pressure mainly due to climate change. The good news is that Africa’s agriculture sector has been growing at a steady pace and the continent boasts at least 65% of the world’s uncultivated arable land. If this is fully utilised, then African farmers could meet the food needs of the entire world.

As things stand, however, the continent will continue to be dependent on the rest of the world for food, with imports amounting to $35bn annually entering the African market. This includes imports of staples such as wheat ($9.3bn), rice ($5.3bn) and maize ($4.1bn). The rate is projected to rocket up to $110bn by 2025. The current system is geared towards cheap imports of commodities such as sugar, rice and palm oil which are all also produced in Africa, making it very difficult for domestic farmers and food processors to compete.

The conundrum is clear: Africa must find a way of scaling agricultural output. In response to this challenge, the African Union adopted the Comprehensive Africa Agriculture Development Programme (CAADP) in Maputo, Mozambique in 2003. One of the key policies called for member states to increase public agricultural investment to 10% of national budgets per year and for a 6% increase in agricultural productivity per year.

Obstacles to investment

Despite most member states signing up to the ambitious strategy, very few nations have met the minimum requirements of the programme. While the African Union attempts to accelerate CAADP, agribusinesses have to rely on the private sector to help meet its funding needs in some countries. However, investors tend to be reluctant to offer affordable finance to agribusinesses because they consider the sector to be too risky, according to Dagmawi Habte-Selassie, programme officer at the UN-backed financial institution the International Fund for Agricultural Development (IFAD).

“The challenges facing the agribusinesses in Africa is that there is a shortfall in access to finance because many financial institutions view the sector as too risky,” Habte-Selassie says. “Some of the main obstacles cited by these institutions include an absence of data such as information on land titling, weak infrastructure in some areas, insufficient regulations and a lack of collateral to access significant amounts of funds, to name a few. “Investors would rather throw their backing to something which will guarantee returns such as real estate or ICT-related investments, but if you show them the model that is viable then they will definitely be willing to step in and seize the opportunity.”

Only 3% of total bank lending in Africa is allocated to agribusiness, this despite the fact that it contributes 40% of sub-Saharan Africa’s GDP and employs 70% of the population. The available domestic funding is expensive, with agricultural lending interest rates reaching as high as 50% in some countries. De-risking agricultural investment is achievable through the right kind of collaborations between government, private sector and agribusiness stakeholders.

De-risking agribusiness

Private investments in the agriculture sector are mainly targeted towards high-value crops and export products such as flowers. There is also an increase in countries such as China purchasing land in some African countries to secure their long-term food and biofuel supply. There are also a number of private agribusiness investment funds targeting African agriculture. These funds use various instruments such as quasi-debt investments and public-private partnerships (PPPs). 

More investors are embracing the opportunities on offer in agribusiness, but the lack of consistent government policy and poor regulations in some countries continue to constrain investment, according to Hans Bogaard, director at the Dutch development bank FMO. “It helps if governments and policymakers don’t interfere in agriculture in a way that creates uncertainties and unpredictabilities in the market,” Bogaard says. “The governments need to really understand that they have to facilitate a strong agricultural sector, which means investing in the rural infrastructure and creating predictable regulations.”

Government intervention, however, is required to improve poor infrastructure in every stage of the supply chain. Improving rural roads or implementing cold storage facilities could boost the volume of quality products making their way into the market. More countries need to ramp up their implementation of CAADP and embrace pro-private sector policies such as offering tax incentives to new agri­businesses. While these measures will go some way to making agribusiness an attractive investment prospect, systemic issues, especially the fragmented nature of Africa’s agribusiness will continue to hamper the sector.

by Taku Dzimwasha (African Business Magazine)

Special Supplement: African Energy – A vibrant market

First the good news. Analysis of the 5,300-plus operating, under-construction and planned generation plants now recorded by African Energy Live Data shows installed capacity on the continent will increase by almost 50% from 2018 to 2022, should all announced commercial operations dates be met. The majority of the growth will come from gas and liquid fuel-fired projects, but investment in renewable energy (RE) is increasing quickly.

It is of little surprise that Africa’s largest economies and most populous countries have the largest amount of power generation under construction. With the exception of Ethiopia – which is developing the 6 GW Grand Ethiopia Renaissance Dam (Gerd), East Africa has relatively few megawatts under construction, particularly in troubled areas such as Somalia and South Sudan. However, the region’s ambitious transmission plans point to considerable potential for power trading and, away from established grids, East Africa has proved the crucible in forging innovative off-grid solutions, as it has for other transformative technologies such as mobile banking.

Despite significant gas and hydroelectric power (HEP) resources available in West Africa, of the 6,838 MW under construction in the region, 4,102 MW is taking place in Nigeria. Gambia, Guinea-Bissau, Sierra Leone, Liberia and Burkina Faso are witnessing very little progress and have seen little new capacity come online in the past few years.

South Africa and Angola account for 92% of new generation being built in Southern Africa. In North Africa, Egypt and Algeria also account for 92% of the under construction megawatts, although Morocco and Tunisia also have major renewable energy (RE) and thermal construction projects.

Almost half of the under-construction power generation is located in North Africa (18.5 GW in Egypt and 11.4 GW in Algeria). West, East and Southern Africa have more modest levels of new capacity being built, while only 814 MW is recorded as under construction in Central Africa.

 

Live Data is an innovative and interactive data platform that allows investors and developers to identify and evaluate power projects across the continent. The platform contains detailed information on more than 5,300 projects and 4,500 organisations as of May 2018, with data points on everything ranging from fuels and technology to shareholders, financing and background information. Live Data’s sophisticated Data Tool aggregates project data to provide insight into the structure and outlook of the power sector at a country, regional and continental level.

 

Renewables breakthrough

Tumbling prices for solar and wind technologies, coupled with enthusiastic support from programmes such as the World Bank Group’s Scaling Solar and any number of bilateral initiatives from RE enthusiasts such as Germany, have contributed to ever more economies turning to RE solutions. Should the pipeline recorded by Live Data be realised, the share of renewables in the energy mix across Africa will grow from 21% by end-2018 to 25% in 2022.

Broken down regionally, the share of renewables (which includes HEP) in Central Africa will increase from 64.4% to 68.8%, in East Africa from 59% to 65%, in Southern Africa from 25.5% to 28.1%, and in West Africa from 20.4% to 25.9%. RE as a share of the gas-dependent North African electricity supply industries (ESIs) will only moderately increase, from 8.7% in 2018 to 10.2% in 2022.

 

Jon Marks is editorial director and David Slater is senior project manager at African Energy (www.africa-energy.com).

Burkina Faso on track for GDP growth of around 6 % this year: IMF

Burkina Faso’s economy is on track to grow by around 6 percent this year, in line with the last two years’ average, the International Monetary Fund said in a statement on Monday.

Burkina Faso’s economy expanded by more than 6 percent per year on average during 2016-2017, showing considerable resilience in the face of security and weather-related shocks.

‘‘This performance reflects considerable resilience in the face of external shocks, notably three significant terrorist attacks in Ouagadougou over the last two years and a deteriorating security situation in the border regions in the north, as well as poor rainfall in 2017, which threatens food security in the country,’‘ said Dalia Hakura, who led the IMF team that visited Burkina Faso.

 

The West African nation, which agreed a programme with the Fund in March, will meanwhile aim to reduce its fiscal deficit to 3 percent of GDP by 2019 after it ballooned to an unprecedented 7.7 percent last year.

Reporting by Joe Bavier;