US companies are eager to invest in Africa, specifically in the power sector, according to the spokesman from one company that has already made such an investment.
“Symbion Power and many other companies from the US are ready to invest in Africa,” says Symbion Power CEO Paul Hinks. “These firms are ethical, they have integrity and they need partners in both the public and private sectors.
“The US government wants to support both the US and the African private sector as this is the route to development on the continent,” he adds. “President Obama’s strategy for sub-Saharan Africa was set out in June 2012 and I am sure that everyone will soon see that he is committed to it.”
Symbion Power, a platinum sponsor at the upcoming African Utility Week taking place from 14 to 15 May in Cape Town, recently acquired the South African power network contractor EJP, which Hinks says is a vote of confidence in Africa.
“We wanted a foothold in South Africa and we wanted to strengthen the management of our organisation on the Africa continent. EJ Power has good, experienced management who live in Africa. We can’t manage day to day business with a whole day of time difference and between 9 000km and 13 000km of distance, depending which of our current operations you measure it against.”
The company already has a good track record in Tanzania, says Hinks.
“Tanzania is the first country in Africa that we have worked in. Until then we were heavily focused on Iraq and Afghanistan so it has been a pleasure to return to Africa. We now own three power plants in Tanzania generating 217MW and we have recently signed an agreement with the utility there, Tanesco, to jointly develop a 400MW power plant and a 650km transmission line in the south at Mtwara.
“This plant will have the potential to provide natural gas fired power to neighbouring countries such as Mozambique and Malawi and eventually it can feed the southern African power pool.”
Symbion is also about to enter the Nigerian market since Transcorp Consortium which it is part of, recently won the bid for the acquisition of the 972MW capacity Ughelli Power Plant – one of six power generation companies in that country being privatised.
Hinks describes Nigeria as the most vibrant market in the energy sector in Africa.
“It’s so very, very different than the Nigeria we used to hear about decades ago. We will soon open a new office in Lagos that will become the headquarters of our African independent power business. South Africa will be the headquarters for our construction and engineering business but we intend to pursue IPP opportunities in South Africa too.”