The global forage feed market has been undergoing noteworthy development in the past few years. This can be accredited to the progression in farm animal production, upsurge in the global meat intake, and growing awareness regar…
BMI View: Limited power sector reform, a history of underinvestment in power generation facilities and
feedstock/water shortages will mean that many of the countries in the region will continue to face power
supply shortfalls. Coal is the dominant source of power generation in the SSA - largely due to South Africa's
well established coal mining and power generation sector. Cross-regional power sector expansion efforts
tend to be centred on boosting hydropower, which represents a relatively cheap and available - albeit
volatile - source of power.
- The SSA region has severe limitations in the power sector, due to a history of underinvestment, which
translates into widespread generation shortfalls amid rampant population growth.
- The inability of SSA governments to ensure that electricity tariffs reflect the cost of maintenance and
investment will remain a pertinent hurdle to improving the region's power sector. Barriers to
liberalisation will remain substantial, due to vested interests in state-owned utilities, which have
culminated in tariffs being set low in order to appease populations with limited spending power. This has
in turn weighed on private investment.
- Côte d'Ivoire maintains its leading position in the SSA Power RRI this quarter; whereas, Zimbabwe
continues to trail the pack. Numerous markets have suffered from a deterioration of scores, notably
Kenya, Nigeria and Angola - as project delays, feedstock issues and lower oil prices cloud the outlook.
The precarious power supply situation in South Africa and Ghana has eased for the time-being, boosting
their respective scores marginally
- In the face of reduced off-take from traditional buyers, power demand growth in SSA holds potential as a
niche LNG export destination. We identify Côte d'Ivoire, Ghana and South Africa as the markets with the
highest potential. Government support through pricing and offtake agreements is crucial for long-term
gas import growth.
- The SSA will maintain its overreliance on hydropower generation over the next decade, as weak
consumer spending power, and opposition to power tariff hikes, will centre power sector expansion
efforts on relatively cheap hydropower generation. Hydrological fluctuations will therefore continue to
threaten energy security in the region, which will weigh on investor confidence in energy intensive