The majority of people deprived of access to both clean water and energy live in Africa. Yet, with 5 to 7 kWh/m2 of daily insolation, the continent possesses an inexhaustible energy source: solar energy. The 11th EURAFRIC Forum – a platform for promoting the partnership between African and European SMEs/SMIs – highlights this largely under-developed sector.

More than 900 participants from 20 African and European countries will gather together from 8 to 10 November in Lyon for this “Special Solar Energy” event.

“A recurrent energy problem exists in almost all African countries”,says Abdoulaye Kanté, Director of ADEA, the Agency for Business Development in Africa and organiser of the EURAFRIC Forum. “This is notably the case in some 42 cities, and the situation has even recently caused power cut riots in Dakar. About 37 African cities are also experiencing major problems with water supplies.  

Yet, despite the crisis, Africa’s growth rate is in the region of 5 to 6%. We therefore need to sustain this growth at all cost by producing energy. Traditional energy is not enough. As a result, new sources are needed, with renewable energy such as solar, biofuel and biomass representing opportunities.”  

Making African markets accessible to SMEs

Set up about ten years ago in Lyon, the EURAFRIC Forum has become the event not to be missed for African and European SMEs/SMIs looking for partners. It brings together African and European business leaders, experts, political decision-makers and international financial backers. “We usually welcome SMEs involved in subcontracting in the water and energy sectors and, increasingly, in renewable energies”, explains Abdoulaye Kanté. “French businesses specialised in solar energy are showing more interest in the African continent. Our network also includes international groups.”

African contacts are looking for SMEs/SMIs for a variety of reasons: flexibility, rapid production and delivery, product training, [and] the human aspect of the relationship with the directors.

Serge Miltcheff

The Forum’s approach is helping make Africa’s water and energy markets, previously the exclusive domain of large groups, more accessible to small businesses. “Today, it’s actually the opposite”, claims Serge Miltcheff, Director and Founder of DIFFUSELEC, a French SME specialised in transformers and innovative energy-saving products. “African contacts are looking for SMEs/SMIs for a variety of reasons: flexibility, rapid production and delivery, product training, [and] the human aspect of the relationship with the directors.”

DIFFUSELEC cooperates with African businesses, training their staff and sending its own technicians to Africa to work together on projects. “Through the EURAFRIC Forum, we’ve come into contact with successful and dynamic African companies which have enabled us to sell on the African market”, explains Serge Miltcheff.

EDF Toutelec, one of DIFFUSELEC’s partners, is a Gabonese business and leader in the water and energy sectors in Gabon and the sub-region. It also cooperates with electrical cable manufacturers INGELEC and NEXAN. “We’ve been attending the Forum for about ten years looking for a real win-win partnership”, points outParfait Bibang, its CEO and Founder.    

A “Special Solar Energy” Forum

Two reasons have this year led the EURAFRIC Forum organisers to put the emphasis on solar energy. “The African continent is facing major problems with energy supplies and doesn’t have large resources, for example, for building dams in different places”, explains Abdoulaye Kanté. “It therefore needs to tap into its unexploited potential and install solar or other renewable energy production systems in remote areas. […] As for the French and European SMEs specialised in solar energy, they themselves are facing growing problems selling their products in France, given new French legislation. The EURAFRIC Forum provides them with an opportunity to find markets in Africa.”

...constructing a transformer manufacturing plant in Gabon (75% of the works are already completed), which we are delighted to be presenting at this Forum.

Parfait Bibang

For EDF Toutelec, the goal is to develop real “made in Gabon” expertise. The company already looks set to become the largest manufacturer of electrical transformers in Central Africa. “Our board of directors has given the green light for two major investments over the coming five years”, indicates Parfait Bibang: “hiring staff who are qualified in everything related to renewable and solar energy, as well as setting up a service to deal with both sales and installations, [and] constructing a transformer manufacturing plant in Gabon (75% of the works are already completed), which we are delighted to be presenting at this Forum.” 

Europe has its role to play

European businesses can recapture market shares in Africa by backing technology transfers and the partnership

Abdoulaye Kanté

European businesses have lost market shares to Chinese firms in the water and energy sectors in Africa. “If you look at the list of new constructions or of projects in the hydroelectricity field in Africa, you’ll see that 90% are carried out by Chinese businesses”, notesAbdoulaye Kanté. “The sectors related to maintenance of water/energy plants remain the exclusive domain of SMEs. It’s in this niche market that ADEA is currently working with businesses. At the Forum in Lyon, we welcome many SMEs, but also groups, notably global leaders in the dam and water sectors. By getting European groups and the SMEs constructively working together, we’re managing to be competitive in a certain number of projects and carry out contracts.   

Europe has a card to play here. European businesses can recapture market shares in Africa by backing technology transfers and the partnership. It should be remembered that the IEA (International Energy Agency) estimates the current amount of annual energy investments in Africa at 45 billion dollars and investment prospects over the coming 20 years at 350 billion dollars.”

For more information about the forum go to: http://www.eurafric.org/