AFRICA Investing in Energy
Shanduka has been expanding its involvement in the energy sector. Following a successful partnership with Aggreko, the global interim power solutions specialist, to provide power to the 2010 FIFA World Cup, Shanduka again teamed up with the company on a ground-breaking project to supply temporary power to the Mozambican and South African grids.
In June 2012, Shanduka and Aggreko launched a 107 MW power plant in Ressano Garcia, Mozambique. Built in just 20 weeks, the plant uses gas from Mozambique’s Temane gas field to provide an interim power supply to Eskom and its Mozambican counterpart, Electricidade de Moçambique (EDM).
This is thought to be the first project by a private company to supply an interim cross-border power solution to two utilities
in southern Africa, and underlines the potential benefits that can accrue to countries
sharing resources.
Both countries will get much needed additional power. The project also underlines
the importance of
Mozambique as an energy hub for the entire Southern African region.
In the same year, Shanduka launched the first project in its ambitious renewable energy programme. Together with its consortium partners, it began construction of a 73 MW wind power project near Victoria West in the Karoo. This is a joint venture with Gestamp Wind, a Spanish company that develops, constructs and operates wind farms in the world’s leading wind energy markets, and Sarge, a Cape Town-based renewable energy developer.
The project is one of those identified
by South Africa’s Department of Energy as part of the first round of its Independent Power Producer Procurement Programme (IPPPP). Around R1.5 billion will be invested in the project over the next two years. The project is expected to start generating power from July 2014.
While currently only a financial investor in energy, over time Shanduka will develop the competencies necessary to become more operationally involved in its energy investments.
According to Ngobeni, southern Africa is increasingly becoming an attractive place for investment in energy: “It has a growing role as a producer of power – particularly from gas and renewables – and, as the regional economy grows, as a consumer of power.”
SOUTH AFRICA
Expansion across Africa Shanduka is increasingly looking at
opportunities on the continent outside of South Africa. With great opportunities for growth in many African markets, investments on the continent outside South Africa now make up around 20% of the value of Shanduka’s portfolio.
In late 2012, Shanduka announced its largest investment outside South Africa to date, the acquisition of a minority stake in MTN Nigeria. The transaction, worth US$335 million, forms part of the group’s strategy to invest in key sectors in growing African markets. It is also an indication of
Shanduka’s confidence in Nigeria as an important investment destination.
MTN Nigeria is currently the largest mobile operator in Nigeria with 45.64 million active subscribers at the end of September 2012, and an estimated market share of approximately 48%. The company is an indirectly held subsidiary of MTN Group, which holds an effective 78.83% stake.
Shanduka’s investment in MTN Nigeria is a sign of the progress of a company that was formed a mere 10 years ago to advance the empowerment of black South Africans. Now, as a majority
black-owned, broad-based and black-managed company, it has put a significant amount of its own capital into one of the continent’s most important mobile phone markets.
Shanduka is also invested in Helios Towers Nigeria and Icon House, a property development
in Accra, Ghana.
Shanduka’s approach in other parts of Africa has been to identify partners in these markets that have local knowledge and experience. Shanduka continues to pursue opportunies in other parts of Africa, particularly in the energy, infrastructure and property sectors.
70 Finance Monthly CeO AwArdS 2013
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83