In recent years, the need for sustainable business practices has become increasingly apparent through the introduction of “Closing The Green Gap”. As the world grapples with the realities of climate change and the impact it has on our planet, companies have come to realise that they have a responsibility to do their part in reducing their carbon footprint. This is especially true in Africa, where many countries are vulnerable to the effects of climate change.

Closing the Green Gap is a term used to describe the steps that companies can take to become more sustainable. This includes reducing their carbon emissions, using renewable energy sources, and adopting more sustainable business practices. While many African companies are taking steps towards sustainability, there is still a significant gap between what is being done and what needs to be done.

How to become more sustainable as a company and recognise your Green Gap:

Becoming more sustainable as a company involves a multifaceted approach that includes reducing waste, using eco-friendly products and services, implementing sustainable practices, and embracing renewable energy sources.

Practical steps to ensure your company is working towards closing the green gap and becoming more sustainable:

• Conducting a sustainability audit on the gap:

  Start by analysing your company’s environmental impact and identify areas where you can make changes. This audit can help you set your company’s priorities and develop a roadmap for future sustainability.

• Reducing waste:

  Waste reduction can take many forms, including reducing the amount of paper used in our office, minimising packaging, recycling, and composting. Implementing a waste reduction program in your company can help save money, reduce your carbon footprint, and enhance your reputation as a socially responsible company.

• Using eco-friendly products and services:

  Consider using eco-friendly products and services in your business operations. This includes everything from green cleaning supplies to energy-efficient office equipment.

• Implementing sustainable practices to minimise the gap:

  There are many ways to incorporate sustainable practices into your business, such as switching to LED lighting in our office space, encouraging employees to use public transportation, and promoting telecommuting / carpooling. Encourage employees to participate in sustainable practices by setting up a green team or sustainability committee to aid the enforcement of more mindful business practices.

• Embracing renewable energy sources:

  Consider investing in renewable energy sources such as solar panels or wind turbines. These can provide clean energy while reducing your carbon footprint and offering a saving on energy costs while making progress on closing the green gap.

Overcoming the challenges to sustainable business practices in Africa:

One of the biggest challenges facing African companies is the lack of awareness and understanding of sustainability issues. Many companies simply do not have the knowledge or resources to implement sustainable business practices. This is where business-to-business (B2B) partnerships can play a critical role. By working together, companies can share knowledge, resources, and expertise, ultimately creating a more sustainably bright future for Africa.

B2B partnerships can take many forms. For example, companies can work together to develop sustainable supply chains. This can involve sourcing materials from sustainable origins, reducing waste, and implementing more efficient logistics systems. Through teamwork, companies are able to increase their value add and introduce a more environmentally friendly value chain which benefits everyone involved. With sustainability being a new feat for African businesses to get their heads around, a trial-and-error process may be recognised. Through the sharing of success stories and areas of improvement, a knowledge exchange could help accelerate both the adoption of these practices and also the return companies expect to receive.

Examples of sustainable business practice in Africa:

There are already some successful examples of B2B partnerships in Africa. In South Africa, particularly Coca-Cola Beverages Africa (CCBA)  partnered with Puma Energy to install solar panels at its manufacturing sites. This has helped CCBA to reduce its carbon footprint, while also reducing overall energy costs.

Similarly, in Kenya, Unilever has partnered with the Kenya Tea Development Agency (KTDA) to create a sustainable tea supply chain. This involved working with tea farmers to improve their farming practices, reduce waste, and ensure that they receive a fair price for their tea. This partnership has resulted in a sustainable and profitable tea industry in Kenya.

Closing the green gap and adopting sustainable practices is not only an ethical imperative but also a smart business decision for companies operating in Africa. By embracing sustainability, businesses can not only reduce their environmental impact but also improve their bottom line through cost savings, increased efficiency, and enhanced brand reputation. However, the journey towards sustainability requires a comprehensive approach that involves all stakeholders, including suppliers, customers, employees, and the broader community. By working together towards a common goal, businesses can make a positive impact not only in the eyes of their investors but also in the eyes of the local economy.

Finding the right practices suitable to your business model is no easy task, but with this territory being relatively new for many companies on the continent, many guides have been made available.

InterGest South Africa works with a myriad of companies and industries to engage efficacy and ensure that business operation over borders is a seamless process. With consultants, advisors and accountants at the fingertips of our clients, we offer a turnkey solution to companies wishing to expand their horizons into the African business market. With the market growing, Africa holds a special place in the eyes of sustainability, presenting the unique opportunity for growing companies to get into sustainable habits from the get-go and run their growth parallel to that of environmentally friendly business standards.

Visit our website to find out more!  https://intergest.co.za/

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Use Lean manufacturing

One of the first things you can do to save money is to apply a Lean manufacturing principle, which is all about doing more with less. Waste is one of the factors that limit production and may include the waste of resources, time, or workspace. Often this is also coupled with overlooking the skills of your employees and not taking advantage of your manufacturing tools. A financial cost is also always included in this waste.

Lean manufacturing means getting rid of this waste and instead utilising every aspect of the production process to add value and therefore not lose value by creating too much waste. To do more with less, reviewing how you source your raw materials and other production inputs is a great place to start. Lean manufacturing covers all the means of eliminating this waste and improving production whilst allowing you to use less human effort, fewer resources, less equipment, less time, and less space.

Labour Costs

The cost of labour is often another area where companies are burdened with hidden costs over time. The cost of finding and training new workers often holds hidden costs that can be exorbitant over time, so hiring a core focus of employees and keeping them happy is usually a better business tactic. A successful labour reduction strategy must balance resourcing and production overhead, but how do you reduce labour costs in manufacturing without laying off part of the workforce?

To achieve a successful labour reduction strategy, it is important to review your workforce to help you determine whether you’re overpaying or even simply paying for a job not done. This can be done by balancing man-machine activities to maximize the potential of your workforce. Having versatile employees that can multitask and fill up other less-tasking roles is also very helpful, which can be done by training them accordingly. Overtime and overscheduling are two of the largest contributors to exorbitant labour costs, as many manufacturing companies have employees working at non-peak times or low production times. To avoid this, ascertain when your high and low peak times are, so that you can appropriately organize your production flow and staff shifts.

Employee Training and Safety

Another way to cut costs is to train your core focus of employees – not only to ensure efficient business operation and save money long-term, but also to reduce work errors and workplace accidents radically, decreasing the business’ potential liabilities. Periodic training will further motivate your employees and maintain their loyalty to the company.

A factor that many companies often overlook – which influences labour costs – is safety. By providing a safe work environment you improve the safety of your employees, protect your company from unforeseeable liabilities, and this way save money in the long run. Moreover, by ensuring that certain health and safety standards are implemented, you decrease the potential for work hazards and keep your workforce in good shape, further decreasing potential sick leaves or absences.

Reduction of energy usage

Every manufacturing business requires energy to function and the costs thereof can often be high if you are not careful. Cutting your energy costs can be a great way to reduce the costs of production. Different ways of reducing energy costs include using LED lights, which use little energy to run; installing smart thermostats and sensors to manage heating and cooling functions of equipment or facilities; repairing leaks in air-conditioning; investing in energy-efficient manufacturing equipment and turning off equipment when it is not being used.

Using smart technology to schedule Shut-Downs and Start-Ups is another way to save costs on energy. During off-peak season or hours, you can schedule a shutdown of the production area. Powering off machines or equipment during off-production hours or weekends will help reduce energy consumption by a large percentage

Implementing good manufacturing practices

Successful manufacturers will tell you that you need to continue to give the consumer what they want – at unwavering high levels of quality. To maintain this high standard of quality it is important to implement a respectable level of good manufacturing practices, otherwise referred to as the GMPs. The GMPs of your company not only represents a critical aspect of providing goods that are made with the best possible production practices, but also a great branding opportunity to establish your business as a producer of safe and sustainable products.

Ensuring that your manufacturing company uses quality control, standardization, and good manufacturing processes is essential for both local and global companies, as these challenges will lead to a hike in the cost of production if not followed. A established standardised production process will save money in the long run as it saves time and space in the preparation and the actual production process, making processes more efficient.

Technology and Automation

Considering that automation and technology are becoming a big part of various industries these days, finding the perfect combination between human resources and technology is becoming ever more important. The use of technology, be it with robotics or artificial intelligence, has transformed manufacturing businesses into what they are today. Adapting automation for repetitive manual tasks in your production processes is therefore one of the easiest ways to reap the rewards of technology. These repetitive manual tasks may include E-Mails and push notifications, data backups and restorations, sale orders, or even invoicing. By implementing this type of automation into your manufacturing process, work is completed faster and more efficiently, whilst also ensuring a higher quality output, which will enable your company to save manufacturing costs in the long run.

Machinery is another area where money is often lost because often, manufacturing companies tend to buy new machinery once their current machine breaks, which can become an extremely costly habit. Instead, companies should conduct routine equipment maintenance. Machinery should be regarded as an investment and not an expense, so keeping your machines in working order is vital. It is important to adopt periodical preventive and predictive maintenance processes, whereby you routinely lubricate machinery to avoid rust, replace filters, and clean your machinery regularly.

Logistics and shipping

Logistics and shipping are other cost factors that manufacturing companies face when they move their products around too much, which often results in damages or high packaging and shipping costs. Minimizing the distance and time spent transporting products is therefore important when decreasing overall production costs. The solution to this problem is finding packaging and shopping solutions that are more efficient, environmentally friendly, and cost friendly.

Additionally, using in-house services is advisable when saving costs instead of outsourcing deliveries. Building long-lasting relationships with suppliers and freight companies may also be beneficial in this regard. By negotiating on rates and building mutual respect between your company and suppliers and freight couriers,  

Lastly, a common practice is to send off excess material to landfills, but why do this when the company can make a profit from those scrap materials instead? Selling scrap materials such as metals, batteries, and electronics, to vendors is a useful approach to making a profit and ensuring that your company is ‘green’ and eco-friendly.

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The demand for recyclable materials is also partly due to the rising price of virgin materials. Lucrative prices can be achieved for recyclable materials. This offers opportunities for companies in the recycling business to collect waste for industrial customers, separate it and resell it.

There is demand for the work steps of granulation, cleaning, drying, and pelletizing. Due to high levels of contamination, South Africa needs modern washing facilities. Energy-efficient solutions are also increasingly in demand. Efficient waste separation and collection systems, which are largely lacking in South Africa, are also needed.

Food

Food waste is all food and inedible parts of food taken out of the food supply chain to be recycled or disposed of (incl. composted, ploughed under/not harvested, anaerobic digestion, bioenergy production, combined heat and power, incineration, disposal in sewer, landfill or discarded at sea).

Food is treated as disposable. One third of food produced for human consumption is wasted globally amounting to approx. 1.3 billion tonnes per year

Food waste has several negative effects:

• It impacts food security
• Resources used for food production and distribution are wasted
• Environmental impacts throughout the supply chain

Different types of food waste include household food waste, restaurant food waste and retail food waste. Households waste approx. 21% of all purchased Fruits and Vegetables, 19% of bread, 14% of dairy and 10% of meat. These figures are based on self-reported food waste percentages.

The food wasting in South Africa mimics that of developed countries. Reasons for wasting food are similar to reasons why European households waste food. They include date codes, especially best-before and expiry dates, appearance of produce (old/expired/rotten/bad smelling – crooked fruit and vegetables are common), forgetting fruit and vegetables in storage, packaging that cannot be resealed and is poorly protected, preparing too much, eating slowly, pests, buying too much, picky eaters and poor cooking skills.

In total, South Africans waste one-third of all food in the country – roughly 10-million tonnes of food annually.

Plastics

As part of the “Zero Plastics to Landfill” initiative, no more plastics are to end up in landfill sites by 2030. The growing population will increase the consumption of plastics and thus the volume of recyclable material. With the forecast expansion of plastics recycling, there should be increasing opportunities for supply from companies operating in the industry.

Paper

The paper recycling sector in South Africa is flourishing thanks to the efforts of suppliers, collectors, and consumers in waste management. South Africa’s paper recycling target for 2020 of 70% was reached in 2017 – three years ahead of schedule, after recycling 1.3 million tonnes of paper, cardboard, and liquid packaging.

Glass

For the multiple uses of glass, the two South African bottle manufacturers Nampak and Consol founded “The Glass Recycling Company” (TGRC). This company runs initiatives for the collection of used glass. These initiatives have increased the glass recycling rate from 18% in 2006 to 42% in 2018.

Metal

Most of the scrap metal market comes from the industrial sector. Each year, approximately 2.5 – 3 million tonnes of scrap metal are recycled in South Africa. This figure could rise further. The reuse of electronic scrap is being pushed. Beverage cans are increasingly being made from aluminum instead of sheet metal. Aluminum cans can be recycled and reused within 60 days. In addition, recycled aluminum can also be used for other purposes, such as incorporation into car parts.

Conclusion

The South African recycling market has been growing in all segments for years. Some of the growth rates are rapid. Recycling targets are sometimes reached years ahead of schedule. However, the market is still expandable and shows growth potential in the areas of paper, plastics, glass and metal recycling as well as food recycling. Recycling solutions are needed in all sectors in South Africa and must be further developed in the future in order to be able to solve problems such as food waste and environmental pollution more effectively.

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Africa has experienced good economic growth in recent years. The continent is home to 4 of the 10 fastest growing economies in the world. Ethiopia and Rwanda occupy the first two places worldwide. In addition, Côte d’Ivoire and Tanzania are two other African economies in the top 10.

The total value of the African food industry could rise to one trillion US dollars (approx. €841.5 billion) by 2030, according to the World Bank.

With a growing population, the demand for food and beverages will also continue to increase. Currently, about 1.3 billion people live in Africa. By 2050, this number is expected to increase to about 2.5 billion. In addition, the middle class is expected to grow. In 2013, the middle class consisted of about 376 million people and is expected to grow to about 582 million people by 2030.

The E-Commerce sector of the African food and beverage industry is expected to reach a turnover of approximately €1.15 billion in 2021. From 2021 to 2025, sales growth is expected to average 18.19%. The expected growth would lead to a market volume of approximately €2.38 billion in 2025.

Africa’s food and beverage imports have been staggering in recent years (2016 – about €69.74 billion; 2018 – about €54.61 billion) but are projected to increase to about €92.41 billion per year by 2025.

The African countries with the largest import volumes are Egypt, Algeria, South Africa, Morocco and Kenya, which together account for almost 50% of imports. Imports by smaller economies, however, are steadily increasing with economic and population growth. These include, for example, Côte d’Ivoire and Benin, whose imports increased even as those of the rest of the continent declined.

The main exporter of food and beverages is the EU, closely followed by Brazil and India. The list of countries from which Africa imports food and beverages includes 5 EU countries in the top 20 – France, the Netherlands, Spain, Germany and Italy – as well as Russia, Ukraine, the UK and Turkey.

Cereals (including rice, maize and wheat), edible oils, sugar and sugar confectionery, and animal products (dairy and meat) accounted for over 60% of Africa’s total food imports at any given time.

Food and Beverage industry in South Africa

With its robust production capacity and advanced agricultural and agro-processing capabilities, South Africa is Africa’s leading food and beverage industry market.

In 2018, the turnover of South African restaurants, cafes, takeaways, fast food outlets, caterers and other food services was approximately €4.28 billion, according to the government, and this is expected to increase to €5.48 billion by 2023.

According to a report by the EU, the total size of the South African food and beverage industry was approximately €46.7 billion in 2018.

The E-Commerce sector of the food and beverage industry is also on the rise. It had a market volume of approximately €84.89 million in 2020. In 2021, the E-Commerce sector is expected to grow by approximately 12.2%, which would result in a market volume of approximately €95.25 million.

Over the next few years from 2021 to 2025, the food and beverage E-Commerce sector is expected to grow at an average annual rate of 7.66%.

South Africa’s confectionery industry comprises the chocolate industry with a value of approximately €318.4 million and the sugar confectionery industry with a value of approximately €774.71 million. Imports in this segment have increased in recent years. The demand for sugar-free products, premium and artisanal chocolates is driving the growth of niche manufacturers.

South Africa is also the twelfth largest consumer of beer in the world. In 2018, the country consumed a total of approximately 34.47 hectolitres of beer. This accounts for more than 30%of the total formal African beer market.

Food and beverage industry in Nigeria

Nigeria’s food and beverage industry is growing mainly due to the growing middle class and overall population growth. In 2019, Nigeria’s population counted about 201 million people. It is predicted to double to about 402 million people by 2050.
Other growth factors include urbanisation, retail modernisation, infrastructure development and the advancement of advertising and marketing.

In 2019, in the retail sector (supermarkets, etc.) alone, food accounted for approximately 75% of turnover, at around €43.79 billion. The growth rate in food industry turnover averaged 9.2% per year between 2015 and 2019.

The Nigerian confectionery industry is estimated to be worth €28.2 billion in 2021 and is expected to grow at an average of about 5.08% annually until 2025.

The E-Commerce sector of the food and beverage industry is expected to increase by 31.5% to approximately €157.08 million in 2021. From 2021 to 2025, it is predicted to grow at an average annual rate of 11.6%. This would result in a sales volume of approximately €242.83 million in the E-Commerce segment of the food and beverage industry in 2025.

Food and beverage industry in Kenya

The growth of the food and beverage industry in Kenya is fuelled by a changing lifestyle of the population and increasing demand for processed and ready-to-eat foods.

In 2019, Kenya exported about €2.45 billion worth of food and beverages, while it imported about €2.04 billion worth of goods.

Kenya’s sugar confectionery market was estimated at approximately €54.74 million in 2019 and is projected to grow at a compound annual growth rate of 8.7% from 2020 to 2025 to reach approximately €78.11 million in 2025.

The sector is growing strongly, especially in E-Commerce. In 2021, the E-Commerce sector of the food and beverage industry is expected to generate a turnover of approximately €24 million with a growth of 41.1%. Annual growth is expected to average 11% from 2021 to 2025. This growth would mean a turnover of approximately €36 million for the year 2025.

Opportunities for European companies – Example Germany

In 2019, German companies exported over €1 billion worth of food and beverages to Africa. Due to growing populations, rising incomes, urbanisation and the growing middle class, the demand for food and beverages in Africa will continue to increase. This will open up further export opportunities for German companies in the future.
German food and beverage exports to Africa increased by as much as 10.6% in 2020.

Take South Africa, for example: food and beverages account for the majority of the country’s imports. Beverages, spirits, vinegar, sugar and residual foodstuffs in particular are imported. In 2017, the total value of these imports was approximately €2.2 billion.
The demand for imports is increasing. Beer, cereals and poultry meat in particular are areas where demand for imports from all countries of origin is growing.

There are opportunities here to export products to South Africa. Especially on the B2B market and in E-Commerce, there are good sales opportunities. Opportunities for European companies exist in the export of dairy and meat products, cereals, non-alcoholic beverages and beer, among others.

Conclusion

Africa’s food and beverage industry is growing for several reasons. Even though the continent has a lot of potential for its own production, demand for imports is increasing in many countries. This can be explained, among other things, by the growing middle class. Especially the big markets like South Africa, Nigeria or Kenya offer exporters a lot of potential, but smaller markets are also developing and offer growth potential for European exporters.

German food exports to Africa are increasing annually. Especially cereals, dairy and meat products, non-alcoholic beverages and beer represent export opportunities.

About InterGest

Let us competently market your products in the fastest growing African economies.
Our focus is on the major economic hubs of the continent.

We offer you the opportunity to sell your products in South Africa as a Level 2 BBBEE supplier to bulk buyers.

For more information please send an Email to contact@intergest.co.za

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On the first of January 2021, the long-awaited African Continental Free Trade Area (AfCFTA), which was planned since 2015, came into effect. The number of member countries makes this the largest Free Trade Area in the world since the founding of the World Trade Organisation.

The free trade area covers 54 member countries of the African Union with a combined population of 1.3 billion people and a combined GDP of approximately $3.4 trillion. By December 2020, 34 countries have ratified the agreement, with more to follow.

Economic benefits of the Free Trade Area to Africa

The new freedom of movement of people and investment is expected to expand intra-African trade and support Africa’s economic development.

The AfCFTA is fueling the economic transformation of Africa.

The agreement makes the African economy more efficient and thus significantly increases competitiveness, economic growth, investment volumes and innovation. As a result, The African Trade Deficit is expected to be halved.

Initially, intra-African trade is to be increased by 13-25%. According to the United Nations Economic Commission for Africa, trade may even increase by more than 50% as a result of the free trade agreement.

Opportunities for Trade and Investment in Africa

The agreement provides for tariffs and other trade barriers on goods to be greatly reduced initially and eventually eliminated. The goal is for 90% of trade in goods within Africa to become duty-free.

In addition, the free provision of services will be possible in key sectors.

The new agreement offers new opportunities for European companies operating in Africa. Companies can leverage the Free Trade Area to sell products and services to other African markets. For companies that have established a presence or are planning to enter the African market it is now easier to access and serve other African markets.

This will mean that Africa’s huge economic potential can be leveraged much more effectively.

For further information on the market entry in Africa, feel free to contact InterGest South Africa – experts in African markets.

Sources:

• https://www.gov.za/blog/afcfta-dream-our-founding-fathers-coming-life?gclid=CjwKCAiA_9r_BRBZEiwAHZ_v1_Yh-9vWm-bFu9bAUWvnHYIlJ1E5vmt4xGmNcEj2A3BBJOfQQPDrnRoCVzMQAvD_BwE
• https://www.africancfta.org/aboutus
• https://africa-eu-partnership.org/en/afcfta
• https://foreignpolicy.com/2020/11/13/afcfta-free-trade-africa-economics/

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Nigeria’s Renewable Energy – A country with more than 200 million citizens yet it has been reported that the country’s average electricity consumption is only 150 kWh per capita – almost half the amount of what it’s peer countries in Western Africa are consuming who have a significantly lower population. 

With only 12 GW installed, and typically just one-third of that delivered, Nigerian power production falls far short of demand. It has become increasingly popular for Nigerian citizens to generate their own electricity using dirty diesel generators. The big question is, exactly how big is the demand-supply gap, and what is the Nigerian government doing to solve the short-fall of electricity to the nation, and is there an opportunity for foreign investors?

In the past month, the news headlines were light up following some significant announcements made by President Buhari as well as the World Bank in a continued effort to increase the supply of electricity in Nigeria.

In June 2020, the World Bank approved a $750 million loan to Nigeria to  support the country in solving the lack of electricity and to revive the economy, with a specific focus on the private sector.

On 1 July, President Buhari launched a new $2.6 billion gas pipeline project that will further enhance the country’s energy security. The project will also facilitate the revival of moribund industries in the West African country. The Ajaokuta–Kaduna–Kano (AKK) pipeline is a 614-kilometer (381.5-miles) pipeline developed by Nigerian National Petroleum Corporation (NNPC) to transport natural gas from southern Nigeria to central Nigeria.

The project represents phase one of the 1,300-km (808-mi) Trans-Nigerian Gas Pipeline (TNGP) project, which is being developed as part of Nigeria’s Gas Master Plan to utilize the country’s surplus gas resources for power generation as well as for consumption by domestic customers. (NS Energy).

The country continues to focus on Nigeria’s renewable energy sources

Solar Energy Potential

Nigeria has enormous solar energy potential, with fairly distributed solar radiation averaging 19.8 MJm2/day and average sunshine hours of 6h/day. The assumed potential for concentrated solar power and photovoltaic generation is around 427,000 MW. So if you are in the solar business, investing in Nigeria’s renewable energy should be a business venture to consider. Solar panels are widely available at leading online stores in Nigeria and at leading retailers of solar power solutions in the country. The price of a 200W monocrystalline solar panels starts at around 39,000 Naira.

Hydropower Potential

Hydropower has been a cornerstone of grid-powered generation in Nigeria for decades. 15% of current power generation sources in the country are hydro based. The country is reasonably endowed with large rivers and a few natural falls. In all parts of Nigeria, potential sites for unexploited small hydropower exist, with an estimated total capacity of 3,500 MW.

Biomass Potential

The biomass resources of Nigeria are mainly sourced from crops, forage grasses, shrubs, animal wastes, and waste arising from forestry, agriculture, and municipal and industrial activities. Crops such as sweet sorghum, maize, and sugarcane are the most promising feedstock for biofuel production. According to estimates, the daily production of animal waste in Nigeria is about 227,500 tons, which could lead to about 6.8 million m³ of biogas.

InterGest South Africa specialised in assisting multinational companies enter African Markets. Our strategic focus is on providing comprehensive advice on planning and implementing a business basis in Africa.

 If you are interested in learning more about the business opportunities available in Western Africa, we invite you to participate in our Free webinar taking place on 09 July 2020. You can register for the event by licking on the below link – alternatively contact us by sending an email to contact@intergest.co.za

Registration    Link:
https://lnkd.in/ewY8WDq

 

 

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The Covid-19 pandemic is quickly changing the buying behaviour of people in South Africa.  In previous years consumers were happy to go to the shopping malls to purchase the goods that they need. Purchasing goods in person was the most popular method of shopping in South Africa. Since the pandemic, consumers have become more health cautious and online shopping has become an increasingly popular trend.  With the consumer trends changing, South African companies have had to adapt to their retail strategy and focus on digital transformation to keep up with the online consumer trend.  The largest e-commerce shopping segments are Toys, Hobby & DIY with a market volume of €934m in 2020.

Even before the Corona crisis, the e-commerce sector in South Africa was growing steadily with a current market revenue of €3,268 million. Annually the market was growing with 20 – 35% and was predicted that even without the crisis, the market would have exceed sales of around 60 billion ZAR in 2020 while growing three times faster than traditional retail sales between 2018 and 2023. With the expected longer road to normality, the importance of e-commerce will increase even more and will probably continue to play a major role in people’s buying behaviour after the crisis, which could change permanently.

More than half of South Africa’s population of about 58 million people have access to the Internet. More than two thirds of them access the Internet every day. Sales platforms on mobile devices are particularly promising, as around 96% of regular Internet users in South Africa access the Internet via mobile devices. The below image is a graphic illustration of the expected number of ecommerce users. By the year 2024, a total of 36.9 million people will be doing online shopping in South Africa. 

 DIE ZUKUNFT DES E-COMMERCE IN SÜDAFRIKA

Der E-Commerce-Markt umfasst den Verkauf von physischen Gütern über einen digitalen Kanal an einen privaten Endverbraucher (B2C). In dieser Definition sind sowohl Käufe über Desktop-Computer (einschließlich Notebooks und Laptops) als auch Käufe über mobile Geräte wie Smartphones und Tablets enthalten. 

Die Covid-19-Pandemie verändert gerade das Kaufverhalten der Menschen in Südafrika rasch.  In den vergangenen Jahren gingen die Verbraucher gerne in die Shopping-Malls, um die benötigten Waren zu kaufen. Der persönliche Einkauf war die beliebteste Einkaufsmethode in Südafrika. Seit der Pandemie sind die Verbraucher gesundheitlich vorsichtiger geworden und Online-Shopping ist zu einem immer beliebteren Trend geworden.  Da sich die Verbrauchertrends verändert haben, mussten südafrikanische Unternehmen ihre Einzelhandelsstrategie anpassen und sich auf die digitale Transformation konzentrieren, um mit dem Online-Konsumententrend Schritt halten zu können.  Die größten E-Commerce-Shopping-Segmente sind Spielzeug, Hobby und Heimwerkerbedarf mit einem Marktvolumen von 934 Millionen Euro im Jahr 2020.

Schon vor der Corona-Krise wuchs der E-Commerce-Sektor in Südafrika stetig mit einem aktuellen Marktumsatz von 3.268 Millionen Euro. Jährlich wuchs der Markt mit 20 – 35% und es wurde vorhergesagt, dass der Markt auch ohne die Krise im Jahr 2020 einen Umsatz von ca. 60 Milliarden ZAR überschritten haben würde, während er zwischen 2018 und 2023 dreimal schneller wachsen würde als die traditionellen Einzelhandelsumsätze. Mit dem zu erwartenden längeren Weg zur Normalität wird die Bedeutung des E-Commerce noch weiter zunehmen und wahrscheinlich auch nach der Krise eine große Rolle im Kaufverhalten der Menschen spielen, das sich dauerhaft verändern könnte.

Mehr als die Hälfte der Bevölkerung Südafrikas von etwa 58 Millionen Menschen hat Zugang zum Internet. Mehr als zwei Drittel von ihnen haben täglich Zugang zum Internet. Besonders vielversprechend sind Verkaufsplattformen auf mobilen Geräten, da rund 96% der regelmäßigen Internetnutzer in Südafrika über mobile Geräte auf das Internet zugreifen. Die obenstehende Abbildung veranschaulicht grafisch die erwartete Zahl der E-Commerce-Nutzer. Bis zum Jahr 2024 werden insgesamt 36,9 Millionen Menschen in Südafrika online einkaufen. 

Sources/ Quellen:

Bizcommunity – https://www.bizcommunity.com/Article/196/706/203405.html

Accenture – https://www.accenture.com/_acnmedia/pdf-108/accenture-ecommerce-pov.pdf

Statosta.com

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Die Ankündigung wurde von der Nuclear Industries Association of South Africa (Niasa) begrüßt.  Die neuen Kernkraftwerke (KKWs) sollen aus kleinen modularen Reaktoren bestehen, die vom Privatsektor gebaut werden könnten und keine staatliche Finanzierung erfordern würden. Dies ist kein neues Konzept, da südafrikanische Projekte für erneuerbare Energien bereits vom Privatsektor finanziert und gebaut wurden, ohne dass die Regierung eingreifen musste. Es wurde jedoch weiter vorgeschlagen, dass es Möglichkeiten geben könnte, die KKWs in Partnerschaft mit dem Staat zu bauen, ohne dass im Voraus staatliche Mittel eingeworben werden müssten

Projekte in der Pipeline

Kernkraftwerk Koeberg: Die Verlängerung der Betriebsdauer des Kernkraftwerks Koeberg über das Jahr 2024 hinaus ist eine weitere spannende Chance für die Branche, da sie die Möglichkeit bietet, konkrete Projekte zu starten, die den Grundstein für die Kapazitätsentwicklung legen. Im Zusammenhang mit der Erweiterung von Koeberg ist die Realisierung des Zentralen Zwischenlagers für den hochaktiven Atommüll, der derzeit am Standort Koeberg gelagert wird, eine weitere spannende Chance für die Branche.

Forschungsreaktor SAFARI-1: Niasa lobte auch den Plan der Regierung, den südafrikanischen Forschungsreaktor SAFARI-1 durch einen neuen Mehrzweckreaktor (einschließlich Forschung) zu ersetzen. Niasa erklärte, dass ein solcher Schritt es dem Land ermöglichen würde, seine Produktion medizinischer Radioisotope zu steigern und seine Position auf den Weltmärkten zu stärken, da Südafrika einst der zweitgrößte Exporteur medizinischer Radioisotope der Welt war.

Die Nuklearprojekte werden die Industrie modernisieren und einen positiven Beitrag zur wirtschaftlichen Entwicklung Südafrikas leisten. Die Projekte werden darüber hinaus zur Schaffung zusätzlicher Arbeitsplätze in den verschiedenen Phasen dieser Projekte führen, von der Planung über die Beschaffung bis hin zum Bau. Danach werden die Kernkraftwerke viele Jahre lang produktiv sein.

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The future of Nuclear Energy for the private sector in South Africa

On 7 May South Africa’s South Africa’s Ministry of Mineral Resources and Energy (DMRE) announced the development of a roadmap for a nuclear new-build program would soon commence as the screening for possible “robust financing options” had already begun. The country’s goal is to procure a total of 2,500 MW of nuclear power by 2024.

The announcement was welcomed by the Nuclear Industries Association of South Africa (Niasa).  The new nuclear power plants (NPPs) are envisioned to be composed of small modular reactors that could be built by the private sector and would not require state funding. This is not a new concept as South African renewable energy projects have already been financed and built by the private sector, without any government intervention. It was however, further proposed that there could be opportunities the NNPs to be built in partnership with the state, without having to acquire state funding in advance.

Projects in the Pipeline

Koeberg nuclear power plant: The extension of the Koeberg nuclear power plant’s operating life beyond 2024 is another exciting opportunity for the industry, as it provides the opportunity to launch concrete projects that will lay the foundation for capacity development. In connection with the expansion of Koeberg, the implementation of the Central Interim Storage Facility for the highly active nuclear waste currently being stored at the Koeberg site is a further exciting opportunity for the industry.

SAFARI-1 research reactor: Niasa also commended the government’s plan to replace South Africa’s SAFARI-1 research reactor with a new multi-purpose reactor (including research). Stating that such a step would enable the country to increase its production of medical radioisotopes and strengthen its position on world markets as South Africa had once been the second largest exporter of medical radioisotopes in the world.

The nuclear projects will modernise the industry and positively contribute to South Africa’s economic development. The projects will further result in additional job creation in the various phases of these projects, from engineering to procurement and construction. This will be followed by many years of productive life for the nuclear plants.

Quellen / Sources:

Engineering news (https://www.engineeringnews.co.za/article/dmre-to-test-market-appetite-for-2-500-mw-of-small-nuclear-reactors-2020-05-07/rep_id:4136) Engineering news (https://www.engineeringnews.co.za/article/industry-association-supports-government-proposals-for-nuclear-power-2020-05-08/rep_id:4136

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Kenia verbessert durch sgr-bau reisemöglichkeiten und somit potenzial für landwirtschaft, tourismus und produktion

Das kenianische Projekt der Normalspurbahn (SGR), Phase 2A, befindet sich derzeit in der letzten Bauphase. Damit soll eine Verbindung zwischen der Hauptstadt Nairobi und der Resortstadt Naivasha in der Region des Grabenbruchs hergestellt werden.

Es wird erwartet, dass durch den Bau der weite Landstrich Zentralkenias für Bahnreisende wie nie zuvor zugänglich sein wird.

Das Reisen wird somit verbessert. In weniger als zwei Stunden werden Reisende, die von Nairobi ins Rift Valley reisen, über die 120 km lange Strecke durch den längsten Eisenbahntunnel in der ostafrikanischen Region, der etwa 4,5 km lang ist, und über eine 6,5 km lange Superbrücke befördert, bevor sie am Fuße des Mount Suswa, eines prächtigen Schildvulkans und eines Touristenziels in der Region, abgesetzt werden.

Die 120 km lange moderne Eisenbahnlinie, deren Bau von der China Communications Construction Company (CCC) beaufsichtigt wird, wurde im Oktober 2016 in Betrieb genommen. Die Strecke ist Teil des Eisenbahnnetzes in Ostafrika.

Einige Fahrgäste werden an den neuen, glänzenden Bahnhöfen in Ongata Rongai, Ngong und Mai Mahui aussteigen, die zwischen den Bahnhöfen Syokimau und Suswa gebaut wurden. Jeder dieser Bahnhöfe besticht durch sein einzigartiges Äußeres und seine geschäftsmäßige Ästhetik im Inneren.

Es wird erwartet, dass sich dies positiv auf strategische Sektoren der kenianischen Wirtschaft wie Landwirtschaft, Tourismus und Produktion auswirken wird.

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KENYA EXPANDS ITS LOGISTICAL INFRASTRUCTURE

Kenya improves travel opportunities through SGR construction and thus potential for agriculture, tourism and production

The Kenyan standard gauge railway (SGR) project, phase 2A, is currently in the final construction phase. It is intended to provide a link between the capital Nairobi and the resort town of Naivasha in the region of the Rift Valley.

It is expected that the construction will make the vast expanse of central Kenya more accessible to rail travellers than ever before.

Travel will thus be improved. In less than two hours, travellers travelling from Nairobi to the Rift Valley will be transported over the 120 km route through the longest railway tunnel in the East African region, which is about 4.5 km long, and over a 6.5 km super-bridge, before being dropped off at the foot of Mount Suswa, a magnificent shield volcano and a tourist destination in the region.

The 120 km long modern railway line, the construction of which is being supervised by China Communications Construction Company (CCC), was put into operation in October 2016. The line is part of the railway network in East Africa. Some passengers will disembark at the new, shiny stations in Ongata Rongai, Ngong and Mai Mahui, which were built between Syokimau and Suswa stations. Each of these stations has a unique exterior and business-like aesthetics inside.

It is expected to have a positive impact on strategic sectors of the Kenyan economy such as agriculture, tourism and manufacturing.

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Quelle/Source: Expo Group

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