Nigeria’s growing manufacturing base received a boost yesterday (May 9) when the African Development Bank (AfDB) approved a $1.5-million grant for the Jigiwa on-grid IPP solar power procurement programme.
According to the AfDB, at full 1 GW capacity, the programme will assist the government in achieving its goals of 75% electricity access by 2020 and increasing the share of renewable energy to 30% by 2030.
Energy analyst Ted Blom told FTW that should an effective energy plan be implemented consistently, Nigeria could see 10% yearly economic growth. “Providing 75% of the population with access to energy will see the country’s economy – based largely on crude oil and small scale entrepreneurial activity – boom, streaming ahead of South Africa.”
He added that Aliko Dangote, the richest man in Africa, was currently in the process of investing $10 billion into a crude oil refinery to enable Nigeria to compete more effectively in the global market. A project that will also contribute meaningfully to the growth of the country’s manufacturing industry.
Duncan Bonnett, director for market access and strategy at Africa House, believes that this could result in a significant export opportunity for South Africa.
“Nigeria’s plans to further develop its manufacturing base is obviously a threat to some manufactured exports from South Africa and other countries, but also offers a good opportunity to invest in that manufacturing base and take advantage of a major regional market, as well as to export inputs into Nigeria’s industrial sector – whether these are raw materials, parts and components, machinery and other technology or the services around a manufacturing economy. We are more than capable of competing with global industry players for this market, however, we can’t afford to rest on our laurels.”
Bonnett explains that we should not expect Nigeria to prioritise our offer simply because we are a fellow African nation. “Nigeria has become a highly competitive environment. We will be directly competing with, not only China and other Asian suppliers, the US and Europe, but the likes of Morocco and Turkey that are becoming increasingly assertive in North and West Africa. If we want to be taken seriously we will need to fly the South African brand in Nigeria and make our presence felt.”
