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Sub-Saharan Africa Power Trends: Report

Africa’s power sector is open for business

Sub-Saharan Africa's (SSA’s) power sector is adapting and rapidly changing in line with global trends and local realities. While supply to date still continues to fall short of demand requirements, reducing the current power shortcomings will be crucial in supporting the next chapter of Africa’s growth model.

This makes the market attractive for new entrants.

Solutions that are emerging in other parts of the world will be replicated into the African power sector. A number of global utilities have seen the continent as a growth market for their businesses, bringing into the market proven technologies that need localisation.

As an advisor to these utilities, Deloitte has observed the inquiries by the number of global utilities increase substantively in the last 24 months upon entering the market.

The power sector is a place for entrepreneurs and innovators

As the power sector experiences both disruptions as well as innovations, and as it adapts to become one that is more efficient, players in the sector will need to change their approach, identify solutions and strategic partners and adjust their business models in order to navigate these challenges and to capture the outlined opportunities. 

New entrepreneurs are emerging all the time, helping the industry business model evolve from traditional statedominated players to the emergence of smaller, newer IPPs. Consumer-to-producer changes in the roles of stakeholders is a key trend, as companies look for mechanisms through technological advancements to create better growth advantages through cheaper electricity supply.

Technology is going to change the face of the industry

New affordable technologies offer the best bets for disruption to the sector. Our focus is to help the early adopters realise value from these technological developments in smart grids and smart metering. Where these projects have been aligned to tangible business and customer benefits, there has been successful adoption of technological solutions.

Finally – evolving the African utility business model

These disruptors are forcing a change in the business models of utilities. No longer are the state-dominant players the only players. If these do not react in a market that is fast-evolving, they run the risk of being left behind as consumer patterns change.


Download full report here.