Südafrikas erhöhte Solar-Photovoltaik-Importe (PV) im ersten Halbjahr 2023 haben einen spürbaren Wandel ausgelöst und ein Licht auf die entschlossenen Bemühungen eines Landes geworfen, nachhaltige Energielösungen einzuführen, nachdem das Land zunehmend von Stromausfällen betroffen war. Volker Werth befasst sich mit der Komplexität dieser treibenden Kräfte, politischen Einflüsse und strategischen Bestrebungen, die den Kurs der Solarenergie im Land prägen.

F1: Herr. Werth, könnten Sie uns die bedeutende Entwicklung mitteilen, die Südafrikas Energielandschaft in der ersten Hälfte des Jahres 2023 erlebt hat?

A1: Im ersten Halbjahr 2023 verzeichnete Südafrika einen bemerkenswerten Anstieg der Importe von Solarzellen und -modulen sowie Lithium-Ionen-Batterien im Gesamtwert von rund 12 Milliarden ZAR (605 Millionen EURO). Der erlebte Anstieg ist besonders bemerkenswert vor dem Hintergrund der Lastabfälle und Stromausfälle in Rekordhöhe im Land.

F2: Wie würden Sie die Solarimporte des Jahres 2023 mit den Vorjahren vergleichen?

A2: Der Anstieg der Solarimporte in den ersten beiden Quartalen des Jahres 2023 ist bemerkenswert, mit einem Wert von 3,6 Milliarden ZAR (EUR) im ersten Quartal und unglaublichen 8,4 Milliarden ZAR (423 Millionen Euro) im zweiten Quartal. Im Vergleich dazu beliefen sich die Dieselimporte für das gesamte Jahr 2022 auf etwa 5,6 Milliarden ZAR (EUR). Das ist fast das Doppelte der Importmenge in den ersten 6 Monaten des Jahres 2023 im Vergleich zum gesamten Jahr 2022.

F3: Welche Faktoren treiben Ihrer Meinung nach den zunehmenden Import von Solar-PV in Südafrika voran?

A3: Der Anstieg der Importe von Solarmodulen spiegelt einen wachsenden Trend zu alternativen Energielösungen wider, insbesondere bei Haushalten und Unternehmen, die sich bemühen, die Herausforderungen durch Lastabwürfe zu bewältigen. Auch die steigenden Stromkosten und die Tariferhöhung, die Eskom von der National Energy Regulator of South Africa (Nersa) gewährt wurde, tragen maßgeblich dazu bei.

F4: Gibt es in letzter Zeit politische Änderungen, die zur erhöhten Nachfrage nach Solar-PV beigetragen haben?

A4: Ja, es wird angenommen, dass die jüngsten Steueranreize, die Finanzminister Enoch Godongwana im Februar 2023 angekündigt hat, teilweise die gestiegene Nachfrage nach Solar-PV-Systemen in Südafrika antreiben. Dies zeigt sich am Wachstum des Marktes für kleine eingebettete Stromerzeugungsanlagen, der sowohl im Privat- als auch im Geschäftssektor erheblich an Dynamik gewinnt.

F5: Können Sie südafrikanische Projekte hervorheben, die den Anstieg der PV-Importe beeinflusst haben?

A5: In Südafrika gibt es eine Reihe von Großprojekten. Ein solches Projekt ist das von Scatec in Kenhardt, Nordkap, im Rahmen der Notbeschaffungsinitiative der Regierung durchgeführte Hybrid-Solar-PV- und Speicherprojekt, das zur erhöhten Importnachfrage beigetragen hat. Darüber hinaus prüfen Unternehmen, die von der Abschaffung der Lizenzschwelle für Stromerzeugungsprojekte im Jahr 2021 profitieren, Importoptionen.

F6: Wie wirkt sich Ihrer Meinung nach die gestiegene Nachfrage nach Solar-PV auf den lokalen Fertigungssektor Südafrikas aus?

A6: Der Anstieg der Solarmodulimporte verdeutlicht die Notwendigkeit einer verbesserten lokalen Produktionskapazität in Südafrika. Derzeit gibt es im Land nur drei Produktions- und Montageanlagen für Solar-PV: ARTSolar in KwaZulu-Natal, Seraphim im Ostkap und Ener-G-Africa im Westkap.

F7: Welche Maßnahmen werden ergriffen, um den Bedarf an einer lokalen Fertigung in Südafrika zu decken?

A7: Um dieser Herausforderung zu begegnen, wurde der südafrikanische Masterplan für erneuerbare Energien eingeführt. Dieser strategische Ansatz zielt darauf ab, inländische Wertschöpfungsketten zu stimulieren, Kompetenzen zu entwickeln und das Wachstum in den Bereichen Solarmodule und Batteriespeicher zu fördern. Dies steht im Einklang mit dem globalen Trend, die Einführung erneuerbarer Energietechnologien zu beschleunigen, um die Energiesicherheit zu verbessern und den CO2-Ausstoß zu reduzieren.

F8: Können Sie Einblicke in das prognostizierte Wachstum des südafrikanischen Solar-PV-Marktes geben?

A8: Die Größe des südafrikanischen Solar-PV-Marktes wird im Jahr 2023 voraussichtlich 5,44 Gigawatt erreichen und bis 2028 mit einer durchschnittlichen jährlichen Wachstumsrate (CAGR) von 11,17 % auf 9,24 Gigawatt wachsen.

F9: Wer sind die Hauptakteure auf dem südafrikanischen Solar-PV-Markt?

A9: Zu den wichtigsten Unternehmen, die auf dem südafrikanischen PV-Markt tätig sind, gehören in keiner bestimmten Reihenfolge JA Solar Holdings, Renenergy South Africa Pty Ltd., Canadian Solar Inc., Enel S.p.A. und JinkoSolar Holding Co., Ltd.

F10: Welche konkreten Möglichkeiten sehen Sie für ausländische Investoren, die sich an der Transformation des Landes zu erneuerbaren Energien beteiligen möchten, da Südafrika einen bemerkenswerten Anstieg der Importe von Solarmodulen und eine zunehmende Verlagerung hin zu nachhaltigen Energielösungen erlebt?

A10: Da Südafrika einen beeindruckenden Anstieg der Importe von Solarmodulen erlebt und sich nachhaltige Energielösungen zu eigen macht, bietet sich ausländischen Investoren eine einmalige Gelegenheit, sich an der Transformation des Landes zu erneuerbaren Energien zu beteiligen. Der Ausbau der Solarinfrastruktur, lokale Fertigung, technologische Innovation, Energiespeicherlösungen, Partnerschaften in Solarparks, Schulungsprogramme, Mikronetzentwicklung, grüne Finanzierung, politische Interessenvertretung und Kooperationen mit lokalen Unternehmen bieten vielfältige Investitionsmöglichkeiten. Durch die Ausrichtung von Investitionen auf Südafrikas Ziele im Bereich der erneuerbaren Energien können ausländische Investoren eine entscheidende Rolle bei der Gestaltung einer saubereren und nachhaltigeren Energiezukunft für das Land spielen und gleichzeitig das Potenzial für finanzielle Erträge und positive gesellschaftliche Auswirkungen nutzen.

The post SÜDAFRIKAS ERHÖHTE NACHFRAGE NACH SOLARBETRIEBENEN LÖSUNGEN appeared first on InterGest.

Growth Factors of Internet Retail in South Africa

1. Expanding Internet Penetration: Expanding Internet Penetration: One of the primary catalysts behind the rapid growth of internet retail in South Africa is the increasing accessibility of the internet. With improved infrastructure and affordable data plans, a larger portion of the population now has the ability to connect to the digital world. This expanded internet penetration has opened doors to new online shoppers, creating a vast consumer base that seeks the convenience and efficiency of virtual marketplaces.
2. Mobile Revolution: The ease of access to smartphones has played a pivotal role in propelling the growth of internet retail. South Africa has witnessed a significant increase in mobile usage, with more people relying on their smartphones to access the internet and make online purchases. Mobile-friendly E-Commerce platforms, coupled with secure and seamless payment options, have made it easier for consumers to shop on-the-go, driving the surge in mobile commerce.
3. Digital Payment Solutions: The evolution of digital payments has significantly contributed to the growth of internet retail. South Africa has witnessed the rise of convenient and secure payment methods such as mobile wallets, digital banking, and payment gateways. These innovations have instilled trust among consumers, making online transactions more seamless and reducing barriers to entry for those who were previously hesitant to shop online.
4. Diverse Product Range and Competitive Pricing: Internet retail in South Africa has diversified the product range available to consumers, surpassing the limitations of physical stores. Online platforms now offer an extensive selection of products, including niche items and international brands, catering to a wide range of preferences and interests. Furthermore, online retailers often provide competitive pricing due to reduced overhead costs, passing on the benefits to consumers.
5. Enhanced Customer Experience: The growth of internet retail in South Africa has forced businesses to prioritize customer experience. Online retailers are investing in user-friendly interfaces, personalized recommendations, and efficient delivery services. Consumers now have the convenience of comparing products, reading reviews, and making informed decisions from the comfort of their homes. This enhanced customer experience has fostered loyalty and trust, encouraging repeat purchases.

The Future of Retail

As the dynamic nature of the digital world has proven, nothing stays the same for very long. As a result, it can be adequately predicted that more and more physical stores are going to invest in functioning online platforms which are mobile and user friendly in an attempt to maintain market share. As more of the population is able to access the internet through different means, retailers will need to think quick on their feet to ensure that the content and online interface that they are offering is engaging and competitive in order to keep potential customers interactive on their page and promote them to complete their purchases. This screen stimulation can be aided by the ease of online payment methods and growing ease of purchase.

Consumers owe the growth of internet retail in South Africa for having ushered in a new era of convenience, choice and accessibility in both the business-to-business and the business-to-consumer markets.  As internet penetration expands, mobile usage soars, and digital payment solutions become more prevalent, online shopping is set to continue its upward trajectory. Businesses that embrace the digital landscape and adapt to evolving consumer preferences stand to benefit from the climbing potential in internet retail in South Africa. The future holds exciting possibilities as technology continues to shape the way we shop, connect, and engage in the ever-evolving digital world.

InterGest South Africa is able to offer a full understanding on the South African market and the potential that comes with expanding access to online markets. With our thorough services of accounting practices, local tax advisory, employer of record, incorporation of companies and banking services, we are able to offer an all-encompassing view of South Africa as a business destination. Allow us the opportunity to focus on the market entry, while you and your company focus on the client relationships and online and in person engagement.

For more information on South Africa as an investment destination or as a market entry point, check out our Investment Guide.

SOURCES:

https://www.euromonitor.com/article/growth-internet-retail-south-africa

The post Internet Retail in South Africa appeared first on InterGest.

1.Labour Efficiency and Increased Productivity

Automated animal product harvesting systems, such as robotic milkers and automated egg collection, streamline the process, reducing the reliance on manual labour. In herds of bigger than 4 animals, manual harvesting can become exhausting, and unhygienic, highlighting to the farmer the benefits of automated processes.  In Sub-Saharan Africa, where skilled labour is often scarce and expensive, automation can significantly boost productivity. These technologies work tirelessly around the clock ensuring consistent and efficient collection of animal products, leading to increased yields and higher income for farmers.

2. Improved Animal Welfare

Automated harvesting systems prioritize animal welfare by minimizing stress and discomfort during the collection process. For instance, robotic milkers allow cows to voluntarily enter the milking station when they feel their udders are heavy, where they are gently milked, ensuring a comfortable experience. By adopting these technologies, Sub-Saharan Africa can improve the overall well-being of livestock, leading to healthier animals and higher-quality products. These healthier animals go on to lead longer lives, offering their resources to farmers for longer.

3: Enhanced Data Collection and Monitoring

Automated animal product harvesting systems are equipped with sensors and data tracking capabilities. These technologies provide valuable insights into animal health, productivity, and overall farm management allowing farmers to keep tabs on their livestock. Through data analysis, farmers can make informed decisions, identify potential issues at an early stage, and optimize their operations. This data-driven approach empowers farmers in Sub-Saharan Africa to improve their production practices and maximize efficiency. By having an inner eye into the health of animals and the state of the quality of products they produce, a farmer is able to implement preventative measures to ensure high grade output and longevity

4: Addressing Labor Shortages

Sub-Saharan Africa faces significant challenges related to labour shortages in the agriculture sector. Many young people choose to migrate to urban areas in search of alternative employment opportunities rather than farm life. This leaves a void in rural farming communities and subsistence farmers livelihoods. By embracing automated animal product harvesting, the region can overcome this labour scarcity and move away from being labour demanding. These technologies require minimal human intervention, allowing farmers to manage larger livestock populations and maintain productivity levels without solely relying on manual labour.

5: Potential for Sustainable Agriculture

Automated animal product harvesting promotes sustainable agriculture practices in Sub-Saharan Africa. These technologies reduce resource wastage by optimizing feed consumption, water usage, and energy efficiency. Additionally, precise data collection allows farmers to implement targeted interventions and reduce the use of antibiotics and other chemicals or pesticides. By adopting automation, the region can achieve sustainable farming practices, preserve the environment, and mitigate the negative impacts associated with traditional farming methods.

Automated animal product harvesting has the potential to revolutionize agriculture in Sub-Saharan Africa. The region also has the rare opportunity to invest in something which they could become pioneers in. Through increased labour efficiency and adequate training on the use and maintenance of these automated machines, many new labour niches may arise. Knowing the ins and outs of how to repair, install and maintain these devices is what will also allow farmers to adopt a more hybrid approach to their farming systems along with offering their skill and expertise to other farmers in the region. Along with the improved animal welfare and enhanced data collection, these technologies offer numerous benefits to the region’s farmers in monitoring their animal wellbeing and the standard of the soil or crops in production. Moreover, by embracing automation, Sub-Saharan Africa can foster sustainable farming practices, which in turn ensures long-term food security and economic growth. It is crucial for governments, organizations, and stakeholders to invest in research, infrastructure, and training to unlock the full potential of automated animal product harvesting and propel the agricultural sector forward.

Just as this automation may be a foreign concept for local farmers, foreign investors may also find themselves navigating unknown waters. InterGest South Africa is a dedicated partner here on African soil offering you accounting, payroll, employer of record, banking and tax advisory services. For any enquires into our services or for more information on Africa as an investment destination, send us an email contact@intergest.com

SOURCES:

https://www.agriseta.co.za/wp-content/uploads/2021/03/116198_LG.pdf

The post Automated Animal Product Harvesting in Sub-Saharan Africa appeared first on InterGest.

1. Abundance of Animal Waste for Energy:

Sub-Saharan Africa is home to a vast number of livestock, including cattle, goats, and pigs, which collectively produce massive amounts of waste. Rather than considering this waste as a burden it could prove rewarding to switch our mindsets. Innovative entrepreneurs and governments are recognizing it as a valuable resource for energy generation for local and international use. Through their investments in this sector, investors are able to tap into an abundant and readily available fuel source, opening up avenues for sustainable energy production.

2. Renewable Energy Creation Potential:

Animal waste, often referred to as biomass, can be used for the production of biogas and biofuels. Biogas, a mixture of methane and carbon dioxide, is a versatile fuel that can be used for electricity generation, heating, and cooking. Biofuels, such as biodiesel, can be blended with conventional fuels or used independently, offering a greener alternative to fossil fuels. By investing in animal waste-to-energy projects, both foreign and local investors can contribute to the transition to renewable energy and reduce greenhouse gas emissions caused.

3. Economic and Social Benefits of this Energy Creation:

Investing in energy creation from animal waste brings significant economic and social benefits to Sub-Saharan Africa:

• Accessibility: The use of biomass offers an opportunity to address energy poverty by providing access to affordable and reliable electricity for communities that are off-grid or have limited access to traditional power sources. South Africa particularly is under an electrical power squeeze, presenting ripe fruit to investors. If correctly channeled and implemented, this could foster economic growth, improve living standards, and enable the development of local industries.
• Employment: Through investment into this sector additional employment opportunities, particularly in rural areas where livestock farming is prevalent, are created. Biogas and biofuel projects require skilled workers for installation, operation, and maintenance, thereby contributing to job creation, skills development, and local capabilities.
• Productivity: The result of organic fertilizers which undergo the waste digestion process renders a more compostable and nutrient rich offering. This purer form of organic fertilizer can be used to enhance agricultural productivity, further boosting local economies and subsistence farmers.

4. Government Support for Energy Creation:

Governments across Sub-Saharan Africa are increasingly recognizing the potential of animal waste-to-energy projects. The international interest and research on the topic has triggered local governments to consider implementing supportive policies and incentives for farmers. These include feed-in tariffs, tax exemptions, and attractive grants to promote renewable energy investments and to encourage regional involvement in sustainable practices. By taking advantage of these favourable policies, investors can mitigate risks and enhance the financial viability of their ventures. The opportunities which come to light when thinking about biomass as a reputable raw material are only set to grow in the future, and associating Africa with this innovation could stand the continent as a true contender in the market.

5. Technology and Knowledge Transfer around Energy Creation:

Investing in energy creation from animal waste in Sub-Saharan Africa also presents opportunities for technology and knowledge transfer to thrive. International investors can collaborate with local partners, sharing expertise in waste-to-energy systems, biogas production, and project management. This exchange not only drives innovation and technological advancements but also fosters sustainable development by empowering local communities with valuable skills and expertise. By engaging workers from all levels of the work spectrum this knowledge exchange could encourage and grow the productivity of the region and trigger entrepreneurs to seize any gaps in the market which they think may arise.

Thorough research will play its part in ensuring the success of this project in the Sub-Saharan region. With knowledgeable and established investors taking action and investing in energy creation from animal waste in Sub-Saharan Africa, a proposition for entrepreneurs are well versed electrical companies seeking sustainable ventures with substantial socio-economic impacts. With abundant livestock populations and supportive government policies, the region offers a fertile ground for renewable energy projects. By harnessing the power of animal waste, investors can contribute to reducing greenhouse gas emissions, promoting energy access, and fostering economic growth. Embracing this opportunity aligns environmental consciousness with profitable investment, forging a path towards a greener, more sustainable future.

InterGest South Africa takes pride in being the catalyst of many new ventures in the African Region. We work hard to supply inclusive Employer of Record services alongside our reputable accounting, payroll and tax advisory services.

For more information, on our services and any enquiries, take a look at our investment guide here.

The post Energy Creation from Animal Waste appeared first on InterGest.

One of the major driving forces of Africa’s growth is the widespread adoption of mobile technology. According to Groupe Speciale Mobile Association (GSMA), a global organisation unifying the mobile ecosystem, the mobile economy in Sub-Saharan Africa is set to contribute $184 billion to the region’s GDP by 2024. With over 800 million mobile phone subscribers and growing, mobile technology is revolutionising the way Africans live, work, and do business.

Africa and e-Commerce Growth:

Africa’s digital revolution has paved the way for new route-to-market strategies that leverage technology to reach customers more effectively. One such strategy is e-Commerce, which has seen significant growth in recent years specifically in the African region. The e-Commerce market in Africa is projected to grow at a compound annual growth rate (CAGR) of 25% from 2020 to 2025, according to a report generated by ResearchAndMarkets.

African Growth and Digital Marketing:

Another route-to-market strategy is digital marketing. With the growing adoption of social media in Africa, companies can leverage platforms such as Facebook, Instagram, LinkedIn, and Twitter to reach their target audience more effectively. Social media has become an essential tool for companies looking to build brand awareness, engage with customers, and drive sales.

In addition, the rise of digital payments has also created new opportunities for companies looking to do business in Africa. Digital payment platforms such as M-Pesa, Paystack, and Flutterwave have made it easier for companies to transact with customers in Africa. These platforms offer secure, fast, and convenient payment options for customers, which can help drive sales and improve customer satisfaction.

However, as newcomer companies navigate the digital landscape in Africa, they must also square up to face the continent’s unique challenges. For example, infrastructure and logistics can pose significant challenges for companies looking to distribute goods and services across the continent. Companies must also consider the complex regulatory environment in Africa, which is region specific and can vary significantly from country to country.

Despite these challenges, the digital revolution and the adoption of new technologies are driving African growth through offering significant opportunities for companies looking to enter and succeed in the market. By leveraging new route-to-market strategies and understanding the unique trends of doing business in Africa, companies can unlock the continent’s vast potential for growth and prosperity.

COMBINING OPPORTUNITY CAPITALISATION AND ROUTE-TO-MARKET STRATEGY TO DRIVE AFRICAN SUCCESS

• A developing economic environment

Sub-Saharan Africa is experiencing steady growth, with a 4% expected annual real GDP growth in 2025. Urbanisation is driving modern retailing, while traditional markets remain an important factor that cannot be ignored. The rise of Africa’s middle class is set to boost disposable incomes by an additional 4% compound annual growth rate (CAGR) until 2030. Key industries such as packaged food, non-alcoholic beverages, and alcoholic drinks can expect to see a rise in sales. The continued growth rate and developing economic environment are also due to the African Free Trade Continent Agreement which works hard towards reducing tariffs and standardising trade policies among member countries. Therefore, making it easier for companies to trade between African countries.

• Digital connectivity

The digital revolution in Africa is leading to targeted and innovative solutions that turn challenges into opportunities. With a surge in mobile subscriptions, connectivity is becoming a lifeline for many Africans, enabling them to make purchases and conduct transactions through secure mobile payment systems. The continent’s lack of legacy systems has become a “testing ground” for digital innovation such as the use of apps that provide farmers with commodity pricing and equipment training. Social media is also making it easier to target consumers and develop partnerships with local inhabitants, highlighting the abundant opportunities for those who understand the complexities of doing business in Africa.

• Localising route-to-market strategies

As this article mentioned afore, developing effective route-to-market strategies is as crucial as adapting to Africa’s ever-improving digital technologies. With 54 independent countries, each having its own cultural attitudes, it’s essential to respect local nuances and business requirements when selling products. No African country operates the same, the target markets and way of doing business vary with each country. To succeed in African markets, companies should consider connecting with informal markets. Through the creation of local partnerships along the supply chain, and by promoting social trust and relationship strengthening,  companies stand to inherit more value and rapport as these communities honour honest communication solutions and do not take word-of-mouth recommendations lightly. These recommendations will assist foreign companies entering the African market to overcome distribution challenges and respond flexibly to changing market needs, all while generating a positive consumer response and driving African growth.

In conclusion, Africa presents a range of opportunities for foreign companies willing to invest the time and resources to understand the complexities of the African business market. The digital revolution and growth in mobile connectivity have offered many Africans new avenues for companies and entrepreneurs to engage with consumers and sell products. However, it is important for companies to recognise the idiosyncratic nature of each market within Africa and to focus on developing local route-to-market strategies that respect the cultural attitudes and beliefs of each country into which they wish to expand into. Building local partnerships with market entry service providers such as InterGest South Africa will ensure that companies overcome market entry challenges and gain a greater stake in their business outcomes. With the right approach, companies can capitalise on the growth and opportunities presented by the African market in both the near and long term.

For more information on the services rendered by InterGest South Africa, please send an email to contact@intergest.co.za

Source:

• Digital revolution and route to market strategies will drive African, growth –https://www.euromonitor.com/article/digital-revolution-and-route-to-market-strategies-will-drive-african-growth
• Mobile economy of Sub-Saharan Africa – https://www.gsma.com/mobileeconomy/sub-saharan-africa/
• South Africa eCommerce market size forecast – https://www.researchandmarkets.com/reports/5504330/south-africa-e-commerce-market-size-forecast

The post Driving African Growth via Route-to-Market Strategies appeared first on InterGest.

Although this is not a new fact to global investors and voyeurs, we offer a more holistic view of the regions capacity by examining 7 socioeconomic facts about Sub-Saharan Africa:

• Working age population to expand, offering opportunities for innovation and entrepreneurship in Sub-Saharan Regions

Many Sub-Saharan countries may face few employment opportunities and thus turn to entrepreneurship to build new opportunities for innovation and technological compliance. The population of this region is set to account for over half the global population growth over the next 20 years and for the working age to greatly surge when compared to the global economy and employment market.

• Mobile Internet to be at the forefront of Digital Transformation of Africa

Sub-Saharan Africa recorded an unseen high of local internet exposure of 48% in 2021 (Euromonitor). With mobile smartphone sales recorded to be on the rise in 2021, information access and delivery solutions quickly spiked. From this rush of activity, entrepreneurs grew their ideas to centralise delivery points and allow for local pick-up points for groceries, household goods, technology, the latest fashion trends, and even fast foods.

• Agreement Establishing the African Continental Free Trade Area (AfCFTA) to support new digital platforms and act as a steppingstone for Inter-Regional Trade in Sub-Saharan Africa

The impending take-off of the technological sector in African countries will aid the improvement of manufacturing and industrial goods leading to the refinement of locally produced products. With a range of better products on the rise, quality products can be exported triggering enhanced trade relationships and increased inter-African demand. Although the AfCTFTA is still in its early days of development and undergoing some teething issues along the way, the agreement clearly outlines its intentions to aid the development of local online trade platforms.

• SME Funding relying solely on local African Platforms

Local SME’s are now more than ever in need of custom finance lending solutions to meet their unique needs. Here, local lending platforms are finding their niche allowing for flexible and custom-made money programs which accommodate the requirements of each SME in a way that only a local broker would understand. With the correct financial support behind them, SMEs in Africa are becoming more common, and news of their success is becoming known globally. Many African countries are making their mark on the technological and digital sectors and are showing promising investment opportunities for major international companies.

• Vast Opportunities in renewable energy

The International Energy Agency outlines that by the year 2040 renewable energy will provide up to 50% of the power generation worldwide. Although several Sub-Saharan African countries already generate their electricity output from renewables, South Africa only records 7% of output as coming from renewable sources. As South Africa holds the title of  the largest energy producer in this region, it offers a unique opportunity to energypreneurs to not only offer rectification steps, but also unmatched energy opportunities. The resources for more renewable and natural sources of energy run rampant in the African Region with solar capacity being the most notable. With this being said, it is clear why energy companies are placing their interests in expanding into both the Sub Saharan African and Southern African region with hopes of tapping into this rich energy market.

• Diminishing Regional Discrepancies

Consumer income in rural areas is set to be on the incline resulting in a shrinking gap between urban and rural per capita income. In 2016, rural disposable income per capita in the sub-Saharan African region measured at 41% of urban disposable income per capita. However, 5 years on (2021), a 2% increase of this share is seen with rural disposable income reaching 43% of urban. Euromonitor has estimated that by the year 2040, rural disposable income will account for 67% of urban income, clearly outlining the decline in regional disparities and the growing rural consumers offerings and market choices.

• Improvement of Agricultural Productivity

Sub-Saharan Africa offers a wide variety of agricultural activities and with it many employment opportunities under this realm. In 2021, more than half of the recorded African population was employed under the agricultural sector with positions in hunting, forestry, farming and fishing activities. However, even with this large share of employment, the sector contributed a measly one-fifth to the total gross value added. By implementing growth in the agricultural sector, the security of food and improved consumer income will surely follow. This would result in government action and transformation enhancing the farmer’s access to supply chains and local markets. Access to the demand of consumers will therefore bring with it the need for farmers to mechanise, strategize and optimise their output in order to keep up with the regional demand and hold a promising share in the African Agribusiness market.

Sub-Saharan Africa has always been on the radar of the developed business world, however with its potential only seeming to rise over the next few years, now might be the time to investigate further into just how this lucrative and culturally rich environment could stand to benefit your company or help your new business model soar. For more information on why Sub-Saharan Africa should be your next business venture or how InterGest South Africa could assist with staffing, accounting or managing employees and funds, take a look at our company website.

Source:

https://www.euromonitor.com/article/10-key-socioeconomic-facts-about-sub-saharan-africa

The post Sub-Saharan Africa Socioeconomic Facts appeared first on InterGest.

Tax incentives and the increased demand in households:

Any individual who pays personal income tax is eligible to claim the rebate against their tax liability. The incentive is aimed directly at homeowners rather than business premises as a separate budget has been outlined for the expansion of the renewable energy tax incentive for businesses.

An impressive rebate of 25 percent (%) will be granted by the government on the cost of new and unused solar photovoltaic (PV) panels. Households can however only claim a maximum value of R15 000 per individual. With the newly implemented incentive, the South African government is optimistic that South Africans will be more willing to invest in clean electricity generation sooner rather than later.

As households revert to generating their own renewable energy for private consumption, we expect to see an exponential increase in demand for solar panels, components and battery storage. The spiked demand amongst South African residents, will create a big opportunity for foreign investors looking to expand their solar business into Africa. The need for affordable and quality solar products is a need which is developing faster than technology can keep up, therefore creating a valuable gap in the market for foreign solar companies.

Solar Tax incentive qualifying requirements:

The incentivized rebate has got South African households eager to convert to solar power but residents need to be mindful of the qualifying requirements set out below:

• The rebate is solely applicable to solar PV panels that are bought into use for the first time during the period of 1 March 2023 to 29 February 2024.
• The PV panels are the only components of the system which qualify.
• Solar PV panels must be installed at a residential address which is used for domestic purposes.
• The installation must be supported by a certificate of compliance in terms of the Electrical Installation Regulations of 2009 to ensure the safety of the installation and local compliance with energy regulations.
• Only new and unused solar PV panels are eligible to ensure that the capacity is in addition to what the country already has in place. These panels can be installed as part of a new system or as an extension of an existing system.

Why has the government only incentivized Solar PV panels:

While there are many alternative methods to generate electricity to combat the rolling power cuts government will only be granting tax incentives to the installation of solar. In past years, the alternative and most popular solution for households has always been generators. Generators are often used as emergency backup power however; this is not a sustainable solution to generate additional power. This is because the use of diesel generators increases the demand for fuel and inevitably will lead to negative environmental impacts. By promoting the use of generators, a major contradiction will be introduced as this would detract from the climate objectives which the South African government is committed to where fiscal instruments, such as carbon tax, play an important role.

The focus of the newly implemented tax incentives are therefore solely aimed at solar PV panels to maximize the use of renewable energy to gain as much additional generation capacity as possible. While the solar set-up includes additional components such as an inverter and batteries to run efficiently, households will not receive any incentives for the additional components.

How will the incentive impact the country’s tax legislation?:

The amendment will be included in the 2023 Draft Taxation Laws Amendment Bill which will be made available to public sources. The minister of finance was adamant to provide as much upfront information as possible to speed up the process of households converting to solar energy and being less dependent on the country’s energy grid. This vital information was laid out to aid clarity and ensure that taxpayers do not wait for the tax bills to be published later in the year and instead seize the moment to benefit from this incentive.

With this new incentive taking center stage in South African news, foreign investors wishing to make use of this opportunity will need to act swiftly to “get a piece of the action” and seize a market which is only set to improve with the electricity situation. InterGest South Africa is an outsourced service provider focusing on assisting foreign entities to enter the African market. With 20 years of experience, our team of experienced professionals, are ready to assist you with quick and effortless market entry. Whether you are looking for a sales partner, a reliable warehouse or to set up a company in South Africa, we have the perfect cost-effective solution for you. For more information, we will gladly set up a cost and obligatory free consultation to assist you with entering the market.

Simply send an email to contact@intergest.co.za  or visit our website https://intergest.co.za/

The post Tax Incentives: Increased Demand for Solar Panels in South Africa appeared first on InterGest.

With the world feeling the energy squeeze and all paths leading to renewable alternatives, “energy-preneurs” are seeking exciting and newer alternative energy styles in South Africa to support the local and international grids. Although sunlight takes the spotlight with solar energy being largely distributed around South Africa, there are a few alternative methods to consider and to keep one’s eyes on.

Alternative energy styles available to South Africa

With specific focus on “alternative energy styles”, here are a few other methods of generating electricity and newer out of the box options when trying finding new ways to power the local South African Grid.

1. Bio Energy

   Bio Energy is generated by burning any form of biomass such as crop waste, urban wood waste and forest residue. Biomass waste materials are widely available in the farming and agricultural industry – which is considered to be one of South Africa’s biggest industry sectors.

   Bio Energy has grown in popularity and is expected to be on an upwards trajectory. Once burned, the energy can be converted into a fuel known as “Biofuel”. Biofuel is able to power fuel heavy engines such as that of jets, aeroplanes and motor vehicles.  Through the use of biofuel, a substantial reduction in carbon intensity can be realised.

   More importantly, biofuel is also compatible with power plants allowing a sustainable avenue of electricity generation. Furthermore, to complement the sustainable side of this production even more one cannot overlook another vital need of South Africa’s electrical grid reliability. In an imperative sense, companies and communities must turn to support local biomass initiatives and blooming electrical plants to invest in their efforts and play a part to render them entirely functional. With some of the infrastructure already in place in South African coastal provinces, the market is boasting an incredible, unmatched and ripe for the taking opportunity.:

2. Hydroelectricity

   Hydroelectricity is a common energy method used around the globe wherein water currents are harnessed, and the energy generated is stored. There are new methods on the horizon which need to be recognised. One of the newest players in the game is underwater wave subs which are installed in deep oceans and channels whereby the pulling and pushing movement of the ocean redistributes the energy accordingly. This newer take on hydroelectricity partnered with floating turbines and tidal turbines, allows South Africa to tap into the potential of our deep waters. Particular focus must be paid to the cold pressures which flow in on the Atlantic Ocean which not only controls the storms and wind flow of the country but creates rough windy conditions when flowing into the warmer and more tropical water of the Indian Ocean. This creates an energy generation paradise.

3. Geothermal Energy

Geothermal energy is another great alternative energy source in South Africa. This source takes advantage of the warmth found under the surface of the earth. With the production of this heat being constant, it plays again to the reliability South Africans yearn for when it comes to energy production. This major attraction to the method partnered with the large variety of heat uses renders this not only an untapped market in South Africa for energy producers but also appeals to rural communities to gain access to hot water through natural means. With the right tools, training and infrastructure being installed to exploit this natural heat source, a thorough design of hot water popes could be imagined.

South Africa has always been a resource-rich country that is eager to succeed. By placing a focus on how to conserve what we have and use what is readily available to us entrepreneurs both local and international have the chance to turn around the degradation of fossil fuel energy and start up something new. The above mentioned alternative energy sources are self-sustaining, and offer solutions which companies, farmers, coastal regions, consumers, households and nature reservists would be proud to associate themselves with.

Source:

https://www.dffe.gov.za/projectsprogrammes/biomassenergy

https://justenergy.com/blog/7-types-renewable-energy-future-of-energy/

https://businesstech.co.za/news/government/635439/here-are-some-of-the-biggest-renewable-projects-planned-for-south-africa-including-ramaphosas-latest/

The post 3 Alternative energy styles in South Africa appeared first on InterGest.

With the technological revolution presenting jobs which no one thought to exist 5 years ago, a mass scurry to learn these skills and focus on this market has left a growing gap in the likes of the basic skills required to operate a business successfully. From this basic talent shortage effects are being felt by employers and entrepreneurs who are losing money rapidly due to hindered productivity.

In South Africa, the below-listed qualifications are some of the skills in demand and if possessed, could be grounds for an application for a critical skills visa or for a permanent residence permit:

• Software Developers (IT)
• Developer Programmers (IT)
• Data Scientists (IT)
• Multimedia Specialists and Designers(Design, Media & Arts)
• Civil Engineers (Engineering)
• Architecture and urban and regional planning

Ultimately, South Africa’s objective from this list is to encourage foreign skilled professionals to migrate to South Africa in order to grow the economy and create new employment opportunities.

The company profile of a South African business in 2023 is proving to be staggeringly unique as remote and online work options lead to a flexible corporate culture which is only growing in productivity. A major benefit of this corporate work style is of its unremarked resilience to economic, public health and environmental shocks and uncertainty.

Recruitment trends in South Africa – Back to the basics

The stabilising economy post-pandemic has brought about a surge of job search energy. Employees wanting to resign and start something new, or perhaps consider a position that is more fulfilling has caused a global movement known as “The Great Resignation.” A trend which is echoed in the South African workforce. However, major increases in personnel can be noted in many industries outlining the positive trajectory of South Africa’s employment market. Industries such as medical and health care as well as security and emergency services have both seen an increase of more than 100 percent (BizCommunity). Although these specified markets are growing, a notable increase in the demand for qualified finance, admin and management staff is predominant when companies approach recruiters. 

According to statistics, 36% of candidates that have started new positions in 2023 were recruited by recruitment agencies. A notable increase from the 20% recorded in 2020. Recruitment service providers are alleviating the stress of employee management, businesses can streamline their focus on what they do best, making a profit.

InterGest South Africa has a vast array of HR and recruitment services to ease the hiring process with specific attention to comprehensive payroll solutions, employment contracts, calculations and deducting social security payments and the management of employee expense accounts. For more information on our recruitment service, please send an email to contact@intergest.co.za.

Source:

https://www.bizcommunity.com/Article/196/725/228761.html

The post Back to basics for the South African workforce appeared first on InterGest.

After recent helium discoveries in the Free State province, the once largest gold mining complex in South Africa, the country is set to become one of just eight worldwide liquid helium producers.

The Virginia Gas Project of domestic natural gas producer Renergen started construction in 2019 and is set to be commissioned by August 2022.

Large Helium deposits in the Free State province

According to Stefano Marani, CEO of Renergen, the company believes the helium deposits in the 187,000-hectare site could be the world’s largest concentration of the gas.

Marani and COO Nick Mitchell bought the gas rights in the area in 2012 for just US$1. Originally, they only intended to extract liquefied natural gas (LNG), but their investigation revealed a huge helium potential, estimated to be worth more than US$100 billion.

LNG is methane gas that has been supercooled to -160 degrees Celsius, a state in which it has a very high energy density. The plant will now produce both products, which are in high demand due to the world’s increasing demand for energy and the need for helium to make semiconductors and rocket fuel.

Wide range of application of LNG and Helium

LNG can replace fossil fuels such as petrol or diesel in various applications, including motor vehicles, reducing overall energy consumption, environmental impact and costs.

The unique properties of helium play a significantly underestimated role, as it is invaluable in medical devices, semiconductors, rocket launch fuels and the manufacture of fibre optic cables and televisions, among a wide range of other applications. Currently, there is no method to produce helium synthetically, which makes it very valuable and sought after.

Helium production South Africa – Implementation of the project

Phase One

The first phase of the Virginia Gas Project was funded by the United States government and local investments from Mazi and Sanlam. Marani explained that it serves as a proof of concept to show that the gases are readily available and that Renergen can separate them.

The initial output will be relatively small, with a nominal capacity of 50 tonnes of LNG per day.

Renergen already has two major customers, Ceramic Industries and Consol Glass, who will buy its LGN to help them move away from heavier fossil fuels. Ceramic Industries and Consol Glass will consume about 60% of the Phase 1 LNG, while the remaining 40% will be available for trucks in the logistics sector.

Renergen had spoken to many fleet owners and that the intention to secure the outstanding volume was “robust” among several potential customers. “We believe that the next off-take contract is imminent and that a single company is likely to secure all remaining volumes,” Mitchell said. The LNG conversion kits cost R250 000 on a one-off basis but reduce the long-term operating costs of trucks. LNG could also be used as an alternative fuel for generators, which would allow a 70% reduction in carbon emissions at a much lower cost.

The amount of helium produced will be around 300-350 kg and will be fully exported. This quantity is approximately one and a half times South Africa’s total helium consumption.

Phase two

The second phase of the project is expected to be a much larger project on a “global scale”.

The company plans to reach financial close for this phase by early 2023 and begin commercial operations in 2025.

The plant currently employs about 75 people and will employ 150 to 160 in Phase 2 to provide technical and operational support to wholesalers and clients.

The Free State region has a source of clean, sustainable energy, which means that from a strategic point of view it makes more sense to locate industrial and manufacturing operations in the province than in Johannesburg, for example.

Based on these reasons, Renergen believes that its plant could have a much longer legacy in the region than mining companies.

Sources:

• https://mybroadband.co.za/news/energy/453026-the-r8-investment-that-could-be-worth-r1-7-trillion-south-africas-first-helium-production-plant-starting-up-this-month.html
• https://www.capetownetc.com/news/how-r8-could-turn-into-r1-7-trillion-south-africas-first-helium-plant/

The post Helium production – South Africa’s first helium plant appeared first on InterGest.