The global aluminum rods market is witnessing a CAGR of 2.16%. Africa and ASEAN to record the strongest growth at 4-5%

Global programmes for inter-regional cooperation to promote and aid electrification over the long term

Almost 50% of Africa’s population has no access to grid electricity; Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzania prioritising this

Electrification programmes to result in conductor manufacturers seeking new suppliers with competitive pricing: Cost competitiveness is key differentiator

Backward and forward integration and product focus with competitive pricing will ensure success in the African T&D segment

EPC contractors are the vital link in Africa’s T&D value chain; ACSR and AAC are mainly catered by imports

Scope & Limitations

Explosive population growth and thence demand drive utilities’ installation and conductors demand

9.5mm EC grade consumption is predominant, and will continue to account for highest share of wire rod demand in the long term

Investment in Nigeria, Angola & S. Africa for T&D and new hydropower capacity in Congo, Ethiopia, Guinea & Mozambique to drive conductors market

Major regional conductor manufacturers: Elsewedy Electric (Egypt), M-TEC (S. Africa) & Nexans Maroc (Morocco)

Demand-Supply Gap in Wire rods—Domestic supply insufficient; Opportunities available for global wire rod producers to utilise excess capacity by exporting to Africa

Sustained government effort to improve national economy will directly impact T&D growth, and drive wire rod demand

Key Demand Driver—Electricity sector to require USD 345-Bn investment for wires infrastructure: transmission (USD 80 billion) and distribution (USD 265 billion)

Conductors demand primarily fulfilled by imports; ACSR will continue to be highest imported grade due to its favourable technical specifications

WAPP & SAPP to connect energy sources across Congo, Angola, Namibia Botswana, South Africa, Malawi, Mozambique, Zambia, and Zimbabwe

Egypt’s T&D Segment—International electric interconnections between Libya, Egypt, Jordan, Syria & Lebanon. In 2016, 8 power stations added 3,600+ MW to NEG* at USD 2.7Bn

Robust Transmission & Distribution Segment in Algeria—Conductor production set to increase to cater to nearby Middle East and European markets (French standards)

Robust Transmission & Distribution Segment in Kenya—By 2020 the country’s projected installed energy capacity will triple from 2,177 MW to 6,766 MW, with geothermal contributing around 2,000 MW

Robust Transmission & Distribution Segment in Nigeria—One of the largest economies in Africa, it is a frontrunner in T&D investment, with increased electricity generation capacity, and private ownership

Robust Transmission & Distribution Segment in South Africa—Surplus generation & low demand due to slowdown of mining & industrial activity. Replacement of power lines expected to be a growth driver

Egypt & Nigeria growth leaders due to increasing PPP & innovative solutions for financial constraints; poor electricity revenues, regulatory regimes hinder growth

Africa remains an import dependent market for wire rods and conductor grades due to increasing importance of electrification

EPC contractors liaise with approved suppliers to form a collaborative supply chain network

Collaboration with EPC Contractors will lead to smooth distribution

Competitive Prices, Quality, Technical Capability and Proximity are the key factors that influence T&D Utilities in supplier approval

RECP supports development of renewable energy in Africa— Highest renewable energy capacity & leaders in T&D investment are S. Africa, Egypt, Morocco, Congo & Zambia

Africa—5 Smart cities by 2030 at USD ~60Bn of PPP funding. Changing demographics, T&D projects commissioning, increasing privatisation to lead to growth

The growth of urbanisation and mega cities: key driver which mandates the need for a robust transmission network

Electricity demand to double by 2030 requiring new utilities; cost effective and efficient electricity is a priority for governments

The demand for wire rods and conductors will continue to grow due to governments’ impetus on infrastructure development and rural electrification

Glossary

Maximise opportunities from existing products and markets; systematically explore new products, markets, including inorganic Opportunites

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