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Africa Is A Good Investment Ground For Generator Manufacturers

posted July 10, 2009 - 7:06am
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Africa Is A Good Investment Ground For Generator Manufacturers

Exports of diesel fired generating sets to Africa rose 28 per cent by value in 2008, compared with total global sales increase of 18%.
This figure does not include small gasoline gen sets, mostly less than 7KV in capacity, which produce the bulk of power supply in residential households in some of sub-Saharan Africa’s most populated cities.
Imports of diesel fired gen sets into the continent totaled an estimated $1.45billion, a surge of $315Million past 2007 sales. In a year when profits around the globe generally headed south, the planet’s poorest continent ensured that generating set manufacturers enjoyed a relative boom. Africa accounted for nearly 20% of global import of generating sets.
South Africa bought $237 million worth of diesel generating sets, coming from far behind to pick up the number two position behind Nigeria, which retained the lead with $287Million and 20% of the gen sets coming into Africa. Along with these top two countries, Angola, Algeria and Egypt, all hydrocarbon rich countries, accounted for 64% (or $925Million) of this type of generator sales in Africa.
Now that’s a clear opportunity. Nigeria is so chronically deficient in public power delivery that its economy spends more than a quarter of a billion dollars to import generating sets.
That’s a huge advantage for companies that can produce small scale power for businesses. See story on page 15.
Increased sale of generating sets is always tied to economic prosperity in nations that haven’t figured a way out of getting power to everyone. As the macro economy improves, new hotels, office nd apartment blocks, even some road construction are on the upturn, requiring standby generators to function.
So the boom in generator usage in Africa is a result of improved economic conditions on the continent. But it also reflects the challenges of generating and distributing power through properly structured public or public/private power supply grid.
In Angola, a country of 13 million people where power supply is chronically short, the purchase of a standby generator as part of public power supply is even officially sanctioned. Empressa Nacional de Electricidade (ENE) - Angola’s power supply authority - recently placed a 90MW temporary power station contract with Aggreko, the British company.

Angola’s import of diesel fired generating sets has doubled (by value) every year ............................ ...................................................................................................................................full details in www.africaoilgasreport.com, check specials, and download the link



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