Energy security remains elusive on the African continent and is one of the biggest challenges engulfing the Utility sector, according to KPMG experts.
The International Energy Agency (IEA) estimates that two out of three people in sub-Saharan Africa do not have access to electricity. This translates into 620 million people on the continent without electricity – and for those that have – the supply is unreliable and very expensive compared to world standards.
This, coupled with the Firm’s goal to focus on ‘future proofing’, in an effort to prepare for both foreseeable and unforeseeable forces that are fundamentally changing the power and utilities industry, has resulted in KPMG taking up a diamond sponsorship opportunity at the 2017 African Utility Week, as part of KPMG’s strategy to execute their leadership from an advisory perspective.
Says Ahmed Jaffer, chairman of KPMG in South Africa and the head of power and utilities: “There is an emerging trend in the Utility sector. Utility-scale developments are decreasing, while we see a lot more of community-sized generation projects. Businesses and communities are also showing interest in becoming less dependent on the national grids. In rural Africa, especially, the economics of expanding the national grids do not make sense, hence there is a significant trend towards mini-grids and other off-grid solutions.”
De Buys Scott, senior partner in deal advisory and head of infrastructure advisory at KPMG in South Africa, adds that gravitating towards off-grid and smaller solutions in terms of generation projects is a wise solution for the African continent. “These solutions are cost-effective as the costs that are invested in the general infrastructure of generation projects are eliminated in smaller scale solution.”
Power and utilities companies globally face the triple challenge of improving environmental performance, keeping consumers’ costs down and maintaining system reliability. As a result, KPMG has developed a long-term strategy that seeks to continue investing in innovation, thought leadership, and refreshing existing methodologies that have proved to be effective over the years.
Apart from the wealth of knowledge that the Firm has to offer to Africa Utility Week’s attendees, KPMG looks forward to exercising their commitment to helping organisations with robust, sustainable and flexible strategies, in addition to models that can adapt quickly in a dynamically unfolding future.
“I am eager to see a truly integrated resource plan with a more diverse baseload. It is essential for our audience to know that KPMG is a “one stop shop” for the power and water industry. As part of our strategy to perpetually manage unexpected changes, we are able to provide services through all project phases as well as to offer valuable solutions from a strategic, forensics, tax, internal audit and audit perspective,” concludes Jaffer.