1. Afrikan markkinat erilaisissa kehitysvaiheissaHeta Pyhlahti, FinproSouth Africa4.9.2014

2. Southern Africa2 9/8/2014 Finpro 3. Southern AfricaDiamondsgoodbasefor economicsFinland has special statusInternational mining investments as driverOil country start to developDeveloping with new gas and coal resourcesDeveloped manufacturing country in BRICS. 4. AboutSouthern AfricancountriesCountryBotswanaNamibiaZambiaAngolaMozambiqueSouth AfricaDiamonds good based for economicsFinland has special status.International mining investments as driver.Oil countrystart to develop.Developing withnew gas and coal resourcesDeveloped manufacturingcountry in BRICS.Population, million, 20132,02,314,521,525,853,0GDP billionUSD15 e122212215354GDB(PPP) per CapitaUSD, 20138 2001 8006 000 e1 20011 500GrossDomesticProduct (GDP) growthin 2013, %5.94.46.46.87.11.9Mobilecelluralsubscriptionsper 100 people, 20131611107248147Source: World Bank 5. South AfricaDevelopedmanufacturingcountryGlobally top finance and banking sectorGood InfrastructureDistribution structures in place, competition existsLarge middle class, also upper class consumer marketUnequal unemployment 25% -BBBEEGate to Southern AfricaEU most important partner in FDI -investments and tradeOne of leading investors in African Continent (top 5) 6. South AfricasomemarketcharacteristicsMining sector globally remarkableHigh quality research, machinery manufacturingModernizationneededfromlabour and resourceintensivemodeCar manufacturing: BMW, Mercedes Benz,Large infrastructure investment program: rail, ports..Creates train manufacturing, component manufacturingDemand for cleantech: water treatment, waste management, energy efficiencyDemands for local content , but remarkable importing 7. South AfricasomemarketcharacteristicsProvides high quality private health care services for Southern AfricaExport quality agriculture strong food producing sectorLarge retail chains investing also to neighboring countriesVariety of South African fast food franchising chainsSouth Africahasabout20 millionsmartphoneusers, growthof users27% in 2014. Note: AfriComin November. 8. InfrastructureEconomical growth, growth in import and export, growing investments specially in mining create great need for better infrastructure.South Africa has good infrastructure all over the country, but remarkable investmentsIn Zambia and Mozambique strong role of China and mining companiesBringing investments, engineering, technology, local and foreign workforce in usePort investments in several countries:Luanda, Walvis Bay, Durban, Richards Bay Differences in decision making and purchasingWalvis Bay Corridor group with Namibianauthorities makes one week benchmarking visit to Finland in November. 9. Mining sectoras driverSeveral countries have renewed the mining laws to attract new investments , but also to ensure the local incomeInternational mining companies have strong influence in development (e.g. Vale in Mozambique, Chinese companies )South Africa is one of leading mining countries globallyAutomation, underground mining, energy efficiency, water efficiencyTargeting to create beneficiation of minerals in South AfricaZambiahas attracted several mining international mining investmentsNot only a mine with new technology , but building up infrastructure, mining villages , services etc.Botswanamoved diamond trade from UK to Botswana.Look for diversification with new mines specially large coal resourcesNamibiaopening new minesSmall scale mining often for construction materialsIllegal mining creates environmental and security challenges 10. Energy production-Current situation in Southern Africa2014/09/0810Finpro050100150200250300AngolaBotswanaMozambiqueSouth AfricaZambiaTWhTotal net electricity generation 2011 (TWh)CountryAccess to electricity%GenerationcapacityMWRenewables capacity MWFossil fuelscapacityMWNuclear capacityMWCrude oilproductionbbl/dNatural gas productionBcfRefined petroleum products b/dAngola37,81 6571 000657-1838 90038338 800Botswana45,7132-132----Mozambique20,22 4292 180249--1541 000South Africa84,744 28391240 1411 83016870042437 600Zambia22,01 8191 8127---12 900 11. Someenergysectordevelopmentin Southern AfricaSouth Africa is close to energy crisis , but still importing to neighboring countriesTwo large coal power plants getting ready (10 GW)Planning to build more nuclear powerRemarkable cleantechmarket:IPP programs for renewable energy production (up to 4000MW *2 by 2020 ), energy efficiency , smart gridsNotice local manufacturing possibilities and incentivesBotswana , Namibia remarkable electricity import from South Africanow high interest for own production: coal and gas power plantsZambialarge amount of hydropower projects in pipelineMozambiqueis building up globally remarkable gas and coal production,new power plans and transmission lines 12. EEP-SEA Energia ja ympristohjelmaOhjelman nimiEnergy and Environment Partnership Programme, (EEP-SEA)TavoiteVahvistaaenergiaturvaaja vhentenergiakyhyyttlismllenergiansaantia, energiatehokkuutta ja uusiutuvan energian kyttKohdealueEtel-Afrikka, Lesotho, Swazimaa, Botswana, Mosambik, Namibia, Sambia, Tansania, Kenia, Uganda, Ruanda, Burundi & SeychellitKesto & Budjetti 12/2017 asti & 34 MEUR (II vaihe)Lisarvo yrityksilleOhjelma rahoittaa innovatiivisia projekteja uusiutuvan energian ja energiatehokkuuden sektoreilla. Rahoitusta voi hakea paikallispartnerin kanssa kahden rahoitusikkunan kautta(Window1: innovation& Window2: marketcreation)Listietoa www.eepafrica.org12 13. Thankyou!Contact about Southern Africa:Heta PyhlahtiHeadof Trade Center JohannesburgMobile +27 72 66 11 287Heta.pyhalahti@finpro.fi