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Wood Mackenzie’s report says Sub-Saharan Africa needs $350 billion investment for improved electricity

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A new report by Wood Mackenzie Ltd says Sub-Saharan Africa would need an investment of $350 billion between now and 2030, to be able to improve electricity generation/distribution and potentially solve the region’s long-standing electricity access problem.

The report, titled “Utility evolution in Africa to reshape global electricity demandwas released on Thursday (17th March) by the UK-based energy and consultancy group.

“These investment opportunities work around the fiscal and operational bottlenecks posed by some of Sub-Saharan Africa’s state utilities. Service providers are going straight to the bankable segments of residential, commercial, and industrial electricity demand, typically through distributed, renewable, off-grid solutions where the public utility does not feature.” The report says.

Wood Mackenzie Ltd is a global research and consultancy firm with over 50 years of practice. Wood Mackenzie partners organisations and governments to inspire better decision-making with a focus on oil, gas & LNG, power & renewables, chemicals, and metals & mining sector teams located around the world.

According to research, the number of people in the region with access to electricity has grown dramatically over the past decade, but about 600 million remain without power. To meet a United Nations goal of universal access by 2030, further progress is needed not only in grid link-ups but in off-grid systems using sources such as solar energy.

United Nations says “The number of people without access to electricity fell to around 1 billion in 2016 from 1.7 billion in 2000. The number of people gaining access to electricity each year is accelerating, thanks to strong successes in some countries, including Bangladesh, Ethiopia, India, Kenya, and Tanzania. Grid electrification has been the source of almost all energy access gained since 2000 and is likely to remain the most favourable option for many households, especially in more densely populated areas”

But Sub-Saharan Africa has been bedevilled with cases of grid collapse. Just last week in Nigeria, distribution companies announced the collapse of the country’s national grid amidst a nationwide blackout said “We would like to inform you of another system collapse on the National Grid which occurred at 5:10 pm today. We are monitoring the situation and will continue to provide updates.”

The electricity situation in Sub-Saharan Africa has been epileptic with Nigeria leading the race. Power in Nigeria has been in its worst moment since the past months as generation capacity dropped to 2,000 megawatts with about 14 power plants shutting down. Nigeria’s centralized electricity model have not yielded much for the West African country.

 “Decentralized, bottom-up solar-and-storage grids could not only reshape Africa’s energy future but carry important lessons for the next generation of thinking on utility business models globally, Benjamin Attia, an analyst at WoodMac, said

Electricity demand in Sub-Saharan Africa has doubled over the past 15 years and is expected to increase nearly eight-fold by 2050. The report by Wood Mackenzie said the growing demand is driven by these three fundamental-urbanization trends: population growth, rapid urbanisation, and structural economic transformation.

The report further attributed Africa’s long-standing electricity access problem to massive underinvestment in the region’s electricity infrastructure. It said with the right investments, Sub-Saharan Africa could potentially change the trajectory of electricity demand and supply, not only within the region but globally.

Now, the interesting part is that the declining costs of renewable energy, coupled with innovative business models, could make it easier to bridge the investment gap and provide reliable and affordable energy access across the region.

 

 

 

 

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UN signs MoU with Kenya’s Konza Technopolis

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The United Nations has signed a Memorandum of Understanding (MoU) with Kenya’s Konza Technopolis that will provide a wide range of interrelationships with the various UN agencies domiciled in Nairobi.

Konza CEO, John Paul Okwiri, who disclosed this in a statement on Monday, said the MoU would see Konza Technopolis working together with UN-Habitat, the World Food Programme, United Nations Educational, Scientific
and Cultural Organization (UNESCO), United Nations Development Programme (UNDP), among other UN agencies.

“This MOU provides us with a collaborative platform whereby we bring our strengths and unite for a common good,” Okwiri said.

“The MoU will see Konza Technopolis partner with UN-Habitat and allow city-to-city benchmarking and learning exchanges, strengthening smart city growth including research and data sharing, implement local climate action initiatives including greening initiatives, promotion of non-motorised transport and formulation of smart city frameworks,” he added.

Also speaking on the partnership, Dr. Stephen Jackson, the Resident Coordinator for UN Kenya, said:

“Our MoU will support to explore points of synergies, and strategic partnerships in supporting Kenya and Konza Technopolis as part of Vision
2030 and UN Agenda 2030.”

Konza Technopolis, also known as the Silicon Savannah, is envisaged to be a smart city that will provide work and living space.

“The smart city spatial planning has taken into account provision of clustered industries, educational facilities, recreational parks, green spaces. It has one of the most modern waste recycling and water treatment plants,” Okwiri stated.

“The other areas of cooperation is with the UNDP whereby more than 20 innovators have received technical and financial support to achieve
commercialization and market entry, strategic partnership in the implementation of joint programs based on the Kenya Innovation Ecosystem Mapping.

“We have established the Konza Innovation Ecosystem Initiative (KIEI), which supports the creation of new enterprises, training of young innovators, and commercialization of research findings.

“To date the KIEI has supported over 100 startups and innovators, providing them with mentorship, funding, and access to market.

“We have established partnerships with over 50 institutions, such a UNDP, universities, research centers, and industry associations, to foster knowledge transfer and innovation.

“It has also facilitated the development and commercialization of over 30 innovative products and solutions, such as smart irrigation systems, e-health platforms, and
blockchain applications.

“The cooperation with UNESCO involves a tripartite Agreement together with the Chinese Association of Natural Science Museum (CANSM) which will see the development and management of Konza Natural Science Museum, resource mobilization for the development of the museum and technical advice support and capacity building and professional development programs,” he added.

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Kenya’s agri-tech startup Pula raises $20m funding for farmers’ insurance

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Kenyan agri-tech and insurance startup, Pula, has announced raising $20 million Series B funding round which will be used to help thousands of smallholder farmers in emerging markets gain access to insurance against floods, droughts, and other climate-related events.

The funding round, according to the company’s co-founder and CEO, Rose Goslinga, was led by BlueOrchard, a global impact investment manager and member of the Schroders Group, via its InsuResilience strategy, while fundraising also came from IFC and the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP).

“Partnering with this group of like-minded investors to boost the growth of Pula globally is a very exciting milestone in driving our triple 100 vision, through which we intend to bring insurance to 100 million smallholder farmers,” Goslinga said.

“What started nine years ago as an unconventional idea that many deemed un-scalable is now a proven solution that has solved real needs for millions of smallholder farmers across 22 countries.

“What sets Pula apart is the innovative business model, leveraging artificial intelligence, on the ground data collection mechanisms, mobile-based registration systems, remote sensing, and end-to-end automation tools.”

Co-founder of the startup which was launched in 2015, Thomas Njeru, said “Pula designs and delivers innovative agricultural insurance and digital products to help smallholder farmers endure climate risks, improve their farming practices and bolster their incomes over time.”

“Since its inception, Pula has partnered with over 70 insurance, 20 reinsurance companies, and 100 distribution partners across the globe to deliver their innovative insurance solutions,” Njeru stated.

“This has also helped develop the capacity of local insurance and reinsurance players to understand and underwrite agricultural insurance for smallholder farmers.

“Currently, Pula’s main markets span across Kenya, Nigeria, Zambia, Malawi, Mozambique, and expanding our presence in Asia and Latin America. These markets are managed from Switzerland and coordinated from the Kenya service centre,” he added.

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