Russian Energy Dealmakers to Present at POWER-GEN and DistribuTECH Africa Conference in Cape Town

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The upward trend of foreign direct investment (FDI) in Africa will be of prime interest to the 3,000 power-sector professionals, from 70 countries, that are attending the POWER-GEN Africa and DistribuTECH Africa 2015 conference and exhibition, July 15 to 17 in Cape Town, South Africa.

Industrial Info will be available at Booth D16 during the exhibition and conference, with international personnel available to provide assistance, insights and data on key topics and sector developments.

Strong growth prospects and improving economic management have brought substantial capital flows to Africa in the past. A joint study by the African Development Bank (AfDB), the Organization for Economic Cooperation and Development (OECD) and the United Nations Development Program (UNDP) estimates that financial flows to Africa have quadrupled since 2000.

External capital inflows are vital to the well-being of African economies. In 2015, they are forecast to equal 7.2% of the continent's gross domestic product (GDP).

Not only have these flows grown rapidly overall, but their sources have changed fundamentally. FDI has grown almost five-fold since 2000 and has overtaken official development assistance, which more than tripled in the same period to $56.3 billion in 2014, but which is expected to slow henceforth.

Meanwhile, remittances from Africans working abroad have become the biggest source of foreign inflows to African states. After a six-fold increase, they are projected to top $64 billion in 2015, according to EY's (London, England) "2015 Africa Attractiveness Survey: Making Choices."

FDI is directly linked to infrastructure growth, and the Sub-Saharan power sector is pushing to secure project finance and technological partnerships with international players, and with local and trans-regional partners.

With the theme "Emerging Opportunities in the World's Fastest Growing Continent," the conference will address key issues. Delegates can choose from more than 35 strategic and technical sessions.

The conference also will address the potential to mitigate South Africa's power crisis and minimize load shedding (power cuts).

While adding generating capacity is necessary, the distribution network should not be overlooked, said Willie de Beer, chairman of the DistribuTECH Africa advisory board: "In the end, we still need to get that energy to the customer. This is where we could come unstuck in the next round. There is a massive shortfall on distribution maintenance and infrastructure, so even if we normalize generation capacity, there is pressure on the distribution network causing unplanned outages."

POWER-GEN Conference Director Nigel Blackaby has announced that a number of top Russian energy and nuclear power experts will participate in a workshop entitled "Russian Technologies for Thermal Power Engineering in Africa."

"'This is particularly topical at a time when most stakeholders are assessing different energy sources to find a solution to the continent's power challenges," Blackaby said. The South African government is pondering a 9,600-megawatt nuclear power construction program, with Russia being seen by observers as having the inside track for reactor supply and construction. By no means a done deal, the final decision on the program could depend on the amount of FDI offered by suppliers.

The POWER-GEN Connect Business Matchmaking (PGCBM) service will allow visitors and exhibitors to view profiles, see recommended connections, direct messages to other stakeholders, and arrange meetings with prospective partners.

For related information, see December 19, 2014 - Nuclear Vendor 'Parades' Mark Pre-Procurement Phase for South Africa's 9,600-Megawatt Plan.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.