E-Business

Deloitte Report Points Technology, Others Disrupting SSA Power Trends

Published

9 years ago

July 9, 2015

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Deloitte a global brand under which tens of thousands of dedicated professionals in independent firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management, tax and related services, recently released summary of the consolidated point of view of its power leaders across Africa, backed by research.

The inaugural annual Sub-Saharan Africa power trends report to the market took a snapshot view of several Sub-Saharan African (SSA) markets and share some of the developments specifically relating to the trends that Deloitte sees as emerging ‘disruptors’ in the SSA power sector, presenting new opportunities for power companies in today’s challenging economic climate.

Speaking on the report, Shamal Sivasanker, Africa Infrastructure & Power leader Deloitte, said the report identified that low levels of infrastructure and power supply are a deterrent for many wanting to invest across various sectors in Africa.

According to Sivasanker “Despite a significant oil price drop in recent months signalling renewed headwinds in the global economy, the SSA economy is forecast to grow at a combined rate of 5% over the next few years. To support this level of growth, large investments into infrastructure and sustainable power supply need to be made”.

He said that the development of large capital projects needed to support the growth of the African economy and attract the required investment relies on robust planning, reliable funding, resilient operating structures and skills development.

“In light of the main challenges facing the SSA power industry, such as inadequate generation capacity, poor transmission infrastructure, unskilled or low numbers in the skilled workforce, poor maintenance of existing power stations, as well as poor metering and billing systems resulting in unreliable supply, countries will need to innovate to achieve financially viable growth in the sector.

“These challenges, coupled with a changing landscape in terms of technologies and the costs thereof, are giving rise to a number of ‘disruptors’ in the sector, inspiring a shift away from traditional generation practices and mixes, modes of business, methods of operations and systems, funding channels and models, as well as the landscape of players and stakeholders, towards the application of new and innovative technologies and dynamics in Africa’s power infrastructure,” Sivasanker explained.

Mapping Disruptors in SSA’s Power Sector

Deloitte said in the report that “Unreliable, insufficient and costly power generation and distribution across the African continent has arguably been the Achilles heel to higher and more inclusive growth and socio-economic development of the region. Infrastructure stock levels have impeded rather than facilitated growth and development. This is changing rapidly, as, in order for Sub-Saharan Africa (SSA) to develop and industrialise in a viable manner, a revolution in the power and related infrastructure sector is inevitable”.

The research identifies a number of emerging ‘disruptors’ already visible and will continue to disturb power landscapes in the region, including existing models of business, methods and systems of operations, as well as the blend of players in the region’s power and electricity subsectors.

Although the change that is underway is a gradual one, stakeholders in the sector are cautioned not to fall subject to a ‘boiling frog syndrome’ − although incremental, this change will result in a signifi cant shift in Africa’s power sector, which requires adaptation strategies.

Some of these emerging disruptors can be summarised to include the following:

Disruptor 1: African Economic Growth, Transformation And Rising Demand

The report acknowledged that SSA is one of the fastest-growing regions, averaging 6% growth over the past 15 years.

With continued high growth rates expected for the region, in excess of 5% over the years to 2019, reducing the current power infrastructure shortcomings will be crucial in supporting the next chapter of Africa’s growth model − one that pursues economic diversification and industrial development.

This is in order to make a dent in unemployment, poverty levels and rising inequality amidst a population that is expected to more than double to 2.7 billion people by 2050.

Disruptor 2: A Shifting Energy Mix Gives Rise To New Capital And Players

Thus, SSA’s changing energy mix trend is in part driven by the fact that the region’s energy woes have been underpinned by the reliance on a single source of electricity production. This overreliance is waning and energy generation sources are diversifying.

While power generation from coal will still account for an important share of the energy mix in the foreseeable future, SSA countries are reducing their dependence on coal and oil-based energy sources.

The report contains that countries are diversifying into more sustainable solutions including non-hydro renewables and natural gas, as the fast-dropping cost of these technologies makes them increasingly more viable.

By 2022, non-hydro renewables are expected to increase their share in the energy mix by a factor of five from 2011 values. With 90% of the continent’s hydropower potential still unexploited, hydro-generation is expected to double in output, and increase its contribution in the energy mix from one-fifth to one-quarter by 2022.

Another solution to SSA’s energy security challenges is decentralised renewable energy capacity in the form of off-grid and mini-grid solutions, particularly for remote and rural communities who have lagged access to electricity, given costly grid expansion to less densely populated areas.

Disruptor 3: Changing Role And Type Of Customers

The refocused energy generation mix in SSA also includes a changing structural makeup of players and stakeholders that will complement traditional utilities in producing electricity. The role of consumers is changing.

Deloitte found that consumers are increasingly complementing the role of producers through self-generation, co-generation and new generation structures.

Despite the high urban growth rate in SSA of 3.6%, double the world average in 2014, the type of consumer is also changing, increasingly including more remote and rural consumers with localised requirements and funding abilities.

New industries are emerging, such as ‘consumer-established’ industries ranging from small-scale cottage food processing to commercial businesses in manufacturing and private power generation, amongst others.

Furthermore, through cleaner technologies for off-grid or mini-grid solutions, consumers have and will be shifting away from uneconomical and environmentally unfriendly energy options in the SSA region.

Disruptor 4: Renewable Technologies

The economics of and business case for renewable technologies is evolving. For example, the lower cost structures of more reliable, affordable and greener solutions, underpinned by increasingly energy-efficient, sustainability focused and climate-conscious trends globally

Disruptor 5: Changing Market Structures And Dynamics

A shift from currently centralised monopolies to unbundled structures and more decentralised power generation systems and models is becoming evident and intensifying.

Structural reforms through vertical unbundling, which is the process of ‘unpacking’ integrated utilities into separate generation, transmission and distribution companies, have been the preferred option for countries including Ghana, Kenya, Namibia, South Africa, Uganda and Zimbabwe. Other notable reform options ‘disrupting’ the power sector in the region include management contracts, commercialisation, IPPs, and electricity regulatory and legislative amendments.

These reforms have had the most signifi cant impact on renewable energy and energy effi ciency in the region. In Nigeria, for example, regulators have moved towards cost-refl ective tariffs, thereby providing sustainable returns for market participants.

Transparent bidding processes and tariff incentives have also been aimed at boosting private sector involvement in the power sector in Nigeria. Other successful private sector projects have included Ghana’s Takoradi II project; Kenya’s Iberafrica, Orpower4, Tsavo and Westmont Power projects; and Nigeria’s AES Barge and Okpai projects. Compared to the rest of the world, however, SSA’s reform process is by far the slowest.

Disruptor 6: Smarter Grids And Systems, Smarter Utilities

Linked to the changing market structures and dynamics are smarter energy systems supporting better energy management and pricing structures, which are changing the relationship between producers and consumers, particularly given new applications of technologies.

Smart grids − electricity supply networks that use digital communications technology to analyse, detect and react to local changes – are increasingly being incorporated into African power utilities’ action plans, including countries such as Kenya, Nigeria and South Africa, amongst others.

In addition to other power utility management objectives across the SSA region, optimising asset utilisation and operational efficiency will be one of the major benefits of smart grid solutions.

On revenue management, most countries in SSA have adopted numerous payment methods for electricity, ranging from the old-school walk-in cash transactions to mobile and Internet payments.

In South Africa for instance, the introduction of pre-funded metering will improve the revenue management system in the country’s power sector. This is also the case in areas where pilot off-grid renewable energy is being implemented, the Deloitte report contains and available at www2.deloitte.com.

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E-Business

Hydrogen Hosts Catalyst Workshop, Highlights Resilient Business Models for Fintech Startups

Published

14 hours ago

April 25, 2024

Chike Onwuegbuchi

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As part of its mission to empower African businesses with tools needed to thrive, garner admiration, and foster global acclaim, leading payment solution company, Hydrogen Payment Services Company Limited (Hydrogen), recently partnered with the Co Creation Hub (CcHub), to host the latest edition of the Catalyst workshop in Lagos.

The discourse addressed the potential risks and opportunities for startups and saw experts advise participants on the need to develop resilient business models that would scale across different economic climes.

Moderated by Miracle Ezechi, Digital Marketing Manager, Hydrogen, the panel session addressed dominant issues about the theme: ‘Adapting Fintech Business Models to Economic Climes: Flexibility, Agility and Customer-centricity’.

Mr. Emeka Awagu, Chief Technology Officer, Hydrogen, who spoke as a panellist, addressed the issue of customer-centricity, which according to him, is key to Fintech growth.

He advised startups to listen to customer demands and understand their needs in order to develop the right solutions that will lead to long term market viability.

“Innovation is key for startup growth. However, understanding customers’ needs and change in behaviour will help any startup to innovate better.

“Startups must be flexible and agile to develop solutions with high interoperability and processing speed, and they must be ready to learn from startups that have failed,” Awagu said.

With an estimated 61.07 percent of startups failing, the participants stressed the need for prudence.

“Statistically, a staggering number of startups fail, often due to financial mismanagement. Hence, founders must prioritise understanding and maintaining a healthy the Cost-to-Earnings ratio.

“It is not just a number, but a pivotal indicator of a company’s financial health as well as being a key attractiveness determinant for investors,” Awagu added.

On his part, Ina Alogwu, the Group Director, Digital Transformation, ARM HOLDCO, who also spoke as a panellist at the session, stressed the need for startups to develop sustainable products and solutions that will help them remain competitive in an environment that is faced with harsh economic realities.

“Many startup businesses fail within their first five years, however upcoming startups should not be discouraged, rather develop a culture that will encourage them to understand the reasons for failure and learn from mistakes.

“Startups should not be too rigid with their solutions and should be ready to accept changes that will drive innovation,” Alogwu stated.

Hydrogen will be deepening its economic impact series with a webinar planned for Thursday, April 25, even as businesses across Africa continue to face an array of challenges, ranging from inflation and currency fluctuations to rising operating costs.

Themed ‘Navigating Economic Challenges: Strategies for Sustainable Growth,’ the webinar will delve into key areas critical for businesses to not only survive but thrive in the face of economic adversity. Register using this link – https://bit.ly/Hydrogenwebinar.

Esteemed panellists for this event include Taofik Odukoya, CEO, Vanguard Pharmacy, and Okechukwu Odimgbe, Chief Financial Officer, Hydrogen. The session will be moderated by Nnenna Sam-Obioha, Ecosystem Orchestrator, Hydrogen.

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E-Business

Dexude Secures Funding to Revolutionize Education in Nigeria, Beyond

Published

1 day ago

April 24, 2024

Comms Week

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Dexude, a leading edtech platform with operations in Nigeria, has announced that it has been awarded the prestigious Business Finland TEMPO funding.

Charles Emembolu, founder of Dexude,

This significant funding injection marks a pivotal moment in Dexude’s journey towards transforming education through its AI-powered, live-first, expert-led, and community-driven platform.

The Business Finland TEMPO funding is specifically designed to support startups and SMEs aiming for international growth by building their expertise and solutions into international success stories in innovative ways.

Dexude’s commitment to innovation, coupled with its vision to enable a billion learners worldwide, aligns perfectly with the objectives of the TEMPO funding.

Commenting on this milestone achievement, Charles Emembolu, founder of Dexude, remarked, “We are incredibly honored and excited to receive the Business Finland TEMPO funding. This funding is not only a validation of Dexude’s mission to reinvent education but also a testament to the hard work and dedication of our team. With this support, we are poised to accelerate our efforts in democratizing access to quality education and empowering learners across Nigeria and beyond.”

L-r; Kelvin Chikezie, co-founder of Dexude; Kashifu Inuwa Abdullahi, Director-General/CEO of the National Information Technology Development Agency (NITDA); and Charles Emembolu, founder of Dexude

Kelvin Chikezie, co-founder of Dexude, added, “Securing the Business Finland TEMPO funding is a significant milestone for Dexude. It underscores our commitment to leveraging technology and innovation to revolutionize the way people learn and grow. We are grateful to Business Finland for believing in our vision, and we are excited to embark on this next chapter of Dexude’s journey.”

Dexude is on a mission to redefine education by providing learners with access to influential experts and thought leaders, live interactions, and a vibrant community-driven learning experience.

Through its platform, Dexude aims to break down barriers to learning and empower individuals to pursue their passions and unlock their full potential.

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SOPHiA GENETICS Announces Syndicate Bio as First Liquid Biopsy Customer in Africa

Published

2 days ago

April 24, 2024

Chike Onwuegbuchi

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SOPHiA GENETICS, a cloud-native software company in the healthcare space and a leader in data-driven medicine, has announced that Nigeria-based Syndicate Bio has signed on to implement MSK-ACCESS® powered with SOPHiA DDM™.

Syndicate Bio is the first lab in Africa to adopt the MSK-ACCESS® assay via the SOPHiA DDM™ Platform, and the first company to make comprehensive genomic profiling and liquid biopsy widely available to patients throughout the entire continent.

The implementation of this new technology will further existing work from SOPHiA GENETICS, Memorial Sloan Kettering Cancer Center (MSK), and Syndicate Bio to advance health equity on a global scale.

There are roughly 1 million new cancer patients each year in Africa and currently, comprehensive genomic profiling and liquid biopsy testing options are not widely available.

This means that patients are forced to forego this testing or travel out of continent for these testing options. Syndicate Bio’s implementation of this new offering will provide cutting-edge liquid biopsy testing to many of these patients and will help progress the company’s goal of advancing genomics and precision medicine in an area of the world that has been historically underserved in these areas.

“Partnering with SOPHiA Genetics to bring MSK-ACCESS® powered with SOPHiA DDM™ to our lab is a monumental step in accelerating the cancer treatment and research landscape across Africa, beginning in Nigeria. Next-generation sequencing technologies in oncology and liquid biopsy, which this collaboration enables, hold the potential for creating a leapfrogging opportunity in the oncology treatment and research landscape in Africa,” said Abasi Ene-Obong, PhD., Founder, Syndicate Bio.

“Through this collaboration, we aim to enable the widespread application of precision medicine in oncology across Africa, and thus contributing to the improvement of patient outcomes across the African continent.

“We believe our scientific expertise, combined with AI-enabled technologies and data-driven solutions enabled by SOPHiA GENETICS, presents a unique opportunity to fundamentally transform the journey of cancer patients through non-invasive cancer analysis, predictive genetic testing, and effective precision medicine.”

Syndicate Bio is driving genomics and precision medicine initiatives across the world’s most diverse regions through large-scale partnerships with governments, industry, and other stakeholders. Through its work, Syndicate Bio is making local impact while accelerating drug discovery and development.

By focusing on Africa, Syndicate Bio is poised to make a significant impact, starting with Nigeria, by introducing its pioneering clinical oncology offerings in an underserved region.

Through this endeavor, Syndicate Bio aims to improve cancer diagnosis and treatment for African patients. This initiative not only facilitates local next-generation sequencing (NGS) testing and liquid biopsy testing but also extends access to clinical trial participation, empowering patients and healthcare providers alike.

MSK-ACCESS® powered with SOPHiA DDM™ is a decentralized version of a highly validated ctDNA test developed by MSK that involves the deep sequencing of 146 key cancer-associated genes, and will augment Syndicate Bio’s tumor profiling capabilities, allowing them to utilize a small blood sample to generate a comprehensive report in an efficient and expedited time frame.

The use of liquid biopsy is less invasive than traditional biopsy, and can help simplify patient monitoring, whilst driving the uptake of precision medicine.

The offering combines the sophisticated analytics, state-of-the-art algorithms, and decentralized, cloud-based offerings of the SOPHiA DDM™ Platform, with the scientific and clinical expertise of MSK in cancer genomics to provide a best-in-class liquid biopsy solution.

“In our mission to democratize data-driven medicine, our decentralized global network and unique set of partnerships enable us to help reach underserved populations, just as those that are served by Syndicate Bio,” said Philippe Menu, MD, PhD., Chief Medical Officer, SOPHiA GENETICS.

“By implementing this solution, Syndicate Bio will make a measurable impact throughout Africa, while also helping to generate an unparalleled and comprehensive dataset and provide invaluable insights and knowledge to shape the future of global healthcare.”

In late 2023, SOPHiA GENETICS and MSK announced they are working in partnership with AstraZeneca to bring the world-class MSK-ACCESS® powered with SOPHiA DDM™ testing solution to countries and regions around the globe, including underserved areas where access to testing remains scarce.

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