Cape Town, 22 June 2020: Cape Town based IMPower has developed a market-leading medium sized solution comprising solar and energy storage technologies for the commercial & industrial market, which includes business parks, factories, shopping malls, schools and many others, providing reliable, affordable power.
Energy storage technologies are viewed as a potential game-changer for widespread adoption of renewable energy generation throughout Africa. It facilitates the management of renewable power intermittency, demand response services and the dispatchability of stable, clean and sustainable power into the local or national grid system.
“Our energy solution combining solar and energy storage, provides a maximum benefit solution for the market, ensuring security of supply and significant cost saving – especially with the recent tariff increase. Companies are forced to consider alternate energy solutions and the hybrid combination of solar and energy storage provides a perfect solution for any energy user, be they large or small,” says Chief Executive Officer of IMPower, Jay Naidoo.
Supplied: IMPower
The deployment of renewable energy is not only driven by cost efficiencies and environmental awareness, but when coupled with battery storage, a new dimension emerges, where utilities are able to compete on a level playing field with conventional electricity power plants. Furthermore, energy storage remains a flexible, scalable and efficient solution. Energy storage thwarts the need for power utilities to unearth and replace wires or spend money and time on constructing new plants. As an alternative, they can build a network of battery storage within 6 months.
The International Energy Agency (IEA) predicts that by 2035, developing nations will constitute 80% of total global energy production and consumption alike. A greater portion of this new generation will be derived from renewable sources in response to adhering to international policies for cleaner energy. Energy storage is considered to be the next wave of growth and the international market is expected to grow from US$221-million in 2014 to US$18-billion in 2023.
Spurred by the adoption of cleaner energy, declining prices and regulatory subsidies; solar photovoltaic, battery energy storage systems and mini-grids are being increasingly utilised across the electric system. These developments necessitate that utilities adapt their conventional (centralised) systems into more flexible, integrated and distributed power networks. This movement is evolving from preliminary phases to long-term investments that support the evolution of new business models.
Issues on behalf of IMPower Pty LTD by Siyenza Management, the organisers of Africa Energy Indaba
The Port of Durban, along with the maritime and logistics sectors are unquestionably the main economic drivers of the local economy. To address congestion, the City has initiated an Integrated Freight and Logistics Strategic Framework and Action Plan which sets out the following interventions:
Rehabilitation and expansion of additional lanes on the M7/ Solomon Mahlangu Drive, a key freight corridor in the City and crucial to the Port’s connections to provincial and national road corridors.
Working jointly with Transnet National Ports Authority in developing additional road capacity in and out of the Port of Durban by exploring the possibility of a potential second access road to the Durban Container Terminals and increasing road capacity on Bayhead Road.
Working jointly with the provincial government, Transnet, South African National Roads Agency and the Cato Ridge Logistics Hub Consortium to develop the Cato Ridge Intermodal Hub that will move certain cargo out of the Port to Cato Ridge, further de-congesting the South Durban Basin and making large parcels of land available for development.
eThekwini Mayor Councillor Mxolisi Kaunda outlined other interventions including the Metro Police being permanently stationed at the Bayhead Langeberg Road intersection to manage traffic congestion and any violations of traffic legislation and municipal by-laws. “Road maintenance on Bayhead Road, Khangela Bridge, Sydney Road and Umbilo Road have been carried out, including the recent painting of road markings.
Pier two terminal in the Port has recently implemented the truck booking system and Transnet Freight Rail is at an advanced stage of planning to bring back rail services to the Bulk Terminals at Island View Precinct,” he said.
Media Statement for the City’s Mayoral Committee Member for Economic Opportunities and Asset Management, Alderman James Vos.
South Africa is one of the top three most preferred Business Process Outsourcing (BPO) destinations according to the annual 2020 Front Office BPO Omnibus Survey conducted by Ryan Strategic Advisory. Over 50% of the companies in the BPO sector is situated in Cape Town.
The sample group of the study consisted of 540 senior managers responding on behalf of 240 businesses representing 42 countries spread across multiple sectors.
The City of Cape Town identified BPO as a priority sector due to the number of job opportunities and investment potential it creates. This sector employs over 60 000 people in the Western Cape. As a City, we realised the importance of this sector and for this reason invested in our strategic business partner BPESA Western Cape. BPESA WC is the City’s strategic business partner responsible for the growth and development of the Call Centre and BPO industry.
Since the start of this financial year (July 2019) to date, the City has seen investments in this sector of approximately R954-million, which has resulted in 2 727 job opportunities.
In the past few weeks, I conducted numerous site visits to key role players in the BPO sector. These companies included global BPO giants Teleperformance and Webhelp.
This week I visited the RCS group. I am amazed at the commitment of these organisations to keep their employees safe, and RCS is no different. The company employs nearly 2 000 people across South Africa of which 1 500 reside in Cape Town. A prime example of how this organisation embraced the new normal is by the reskilling of staff. They retained the sales team to now function as a payment advisory team. The organisation took swift action to assist staff with pre-existing conditions, including offering pregnant women the opportunity to work from home first. Over and above adhering to strict social distancing practices on-site, they fog the entire building every Saturday to ensure a safe and clean environment. This coming week, I will check in virtually with the team at WNS.
The BPO sector forms a key component in this City’s economic recovery plan. We are committed to growing this sector by providing a steady skills pipeline. To this end, the City of Cape Town is the first municipality that will receive funding from the National Skills Fund, which sits under the Department of Higher Education and Training.
The funding from the National Skills Fund together with City as well as industry funding, will be contributed towards training and stipends to ensure that learners receive the industry minimum. I believe that for our City to compete globally and experience inclusive socio-economic growth, we must continue investing in skills and training for the sectors that are poised for substantial increases from employment and trade perspectives, instead of training for the sake of training. All administrative processes are now in place, and BPESA WC was appointed as the official service provider. A total of 1100 unemployed youth in Cape Town will be trained during the year.
Video: James Vos, Mayoral Committee Member for Economic Opportunities & Asset Management, and Gareth Pritchard, CEO of BPeSA Western Cape, visit the RCS Group.
After careful deliberation on the economic impacts of COVID-19 and to safeguard the health of all participants, the Manufacturing Indabaannounces the decision to postpone the 2020 Provincial Manufacturing Indaba Conferences and Exhibitions which were due to take place in August (Durban), October (Port Elizabeth) and in early November (Cape Town). The new dates for the provincial events will be announced soon and will be hosted in 2021.
We understand the gravity of the situation for all manufacturing professionals who utilise the Manufacturing Indaba provincial flagship events as a platform to grow their business, accelerate their professional development and to make meaningful connections.
To support the continued engagement and having carefully considered health issues and the need for economic activity, the Gauteng edition of the Manufacturing Indaba will proceed on the 9 – 10 December 2020 at Gallagher Convention Centre in Johannesburg.
The Organisers believe this December date is as late as possible in the 2020 calendar year and with economic activity resuming post the extensive lockdown period, manufacturers will be back in business mode in December.
We trust you will continue supporting our position and stay committed to the events. We invite all our provincial Manufacturers to join us in Gauteng this year and we will back in your province in 2021! Stay safe and connected!
Due to continuing uncertainty over when indoor gatherings are likely to be permitted and safe, we have had to take the decision that this year’s PGMs Industry Day on 9th September will take place in the form of a virtual/online discussion. We believe this to be the responsible and wisest way forward at this stage.
We are pleased to inform you of our outstanding panel of speakers who represent top PGMs industry players from major producers, users and investors. Chaired by Bernard Swanepoel, we promise high level engaging and strategic discussions in a frank and open manner.
The agenda will cover all the key issues that are impacting the PGMs industry as a result of Covid-19 and more. Please see the website for full details.
The world’s four largest
LPG storage tanks at the Bidvest Tank Terminals site in Richards Bay. Image Bidvest
The supply of liquid petroleum gas (LPG) is set to be made easier and more reliable with the erection of the 22 600-ton Mounded LPG Facility at Richards Bay. Bidvest Tank Terminals has constructed the R1-billion storage facility for Petredec, which trades, transports and distributes LPG and other commodities.
South Africa’s annual consumption of LPG, currently at 400 000 tons, is expected to rise to 600 000 tons. If a private partner can be found, a liquid natural gas (LNG) plant will produce 2 000 MW at Richards Bay. This forms part of national government’s allocation of 3 126 MW to natural gas in its medium-term energy policy to 2030.
The National Department of Mineral Resources and Energy (DMRE) decided in 2016 that one of the first two gas-to-power plants to be constructed under the Independent Power Producer Procurement Programme would be allocated to Richards Bay. This has the potential to turn the Richards Bay Industrial Development Zone (RBIDZ) into an energy hub. The fact that neighbouring Mozambique has significant offshore deposits is a factor in this ambition. To produce its allocation of 2 000 MW, the plant would have to use a million tons a year of LNG.
An indication of the scale of activity in Mozambique came in 2019 when Anadarko Petroleum, a US company, signed off on a $20-billion project to build an LNG plant. The projected spin-offs for the South African economy are estimated to top R7-billion.
Eni, one of the world’s biggest energy companies, has an agreement with Sasol Petroleum International to explore for hydrocarbons off the coast of KwaZulu-Natal.
The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbed-methane-gas exploration rights in KwaZulu-Natal to NT Energy Africa, which has a partnership with the Central Energy Fund. These awards are for onshore exploration. The Petroleum Agency SA is an agency of the National Department of Energy.
Getting fuel to the province of Gauteng is the key mission of the new multi-purpose pipeline (NMPP). Refined products such as jet fuel, sulphur diesel and both kinds of octane petrol are carried. The infrastructure of Transnet Pipelines is said to reduce the number of fuel tankers on South African roads by about 60%.
KwaZulu-Natal is home to two major oil refineries and is the first link in the pipeline chain that links Gauteng province, the industrial heartland of South Africa, with vital fuels. The Port of Durban handles 80% of South Africa’s fuel imports. KwaZulu-Natal is thus a key player in the country’s oil and gas industry.
MSC Orchestra arrives in Durban on maiden visit. Image: MSC Cruises
The KwaZulu Cruise Terminal (KCT) consortium has won the contract from Transnet National Ports Authority (TNPA) to finance, build and run the new Durban Cruise Terminal. The terminal is expected to start functioning for the 2020/21 cruise season.
Within the Port of Durban there are a number of specialised facilities. One of the busiest is the Container Terminal and that is the subject of a large upgrading project. The Port of Richards Bay, the link to the world for South Africa’s coal exporters, is constantly adding to its facilities, the latest being a floating dock, for which approval has been given to be constructed within the port.
The cruise terminal is an important step forward for Durban and fits in well with the larger project that links the port to the upgraded southern end of the promenade, the Durban Point Waterfront. A joint venture between MSC Cruises SA and Africa Armada Consortium, KCT will spend about R220-million on the financing‚ construction‚ maintenance and operation of the cruise terminal for a 25-year concession period. Construction began in 2019.
The cruise terminal will cover a 32 000 m² area that will cater for two ships and at least 5 000 passengers. A ship with 2 000 passengers is worth in the region of R2-million per day for the host city. The number of annual passengers is expected to grow from the current 200 000 to more than 700 000 by 2040. Durban’s hosting of 60 ships per annum is expected to rise to 150 or more. South Africa attracts 0.5% of the world’s cruise-ship market which comprises about 15.4-million passengers annually.
MSC Musica uses Durban as her base port and is joined by MSC Opera during the summer months, sailing from Durban to Mozambique and other destinations in the Indian Ocean. A popular offering is the “Tour to Nowhere” cruise. In 2019 MSC Orchestra made its first visit to Durban.
Container terminal
Several projects are underway within the Port of Durban to increase capacity. Transnet National Ports Authority (TNPA) and Transnet Port Terminals (TPT) are combining to upgrade infrastructure and buy new equipment to improve efficiencies at the Ro-Ro terminal (vehicles and break bulk) and Maydon Wharf (mixed cargo and agriculture) but the biggest project is at the Durban Container Terminal (DCT).
DCT has a capacity of 3.6-million TEUs (twenty-foot equivalent units) and the current project aims to extend that beyond five-million TEUs. The Brics New Development Bank has approved a loan of $200-million for the DCT expansion project.
Drydock
Drydock construction. Image: Transnet
Durban’s drydock complex is undergoing a series of refurbishments and upgrades. The R48-million 35 m outer caisson was the first project to be completed and now it’s the turn for the inner caisson and drive system to be fixed, at a cost of R61.5-million. Two Durban companies, Lodemann (Managing Contractor) and Channel Construction (Design and Build), are responsible for the project, which will ensure the sustainability of the ship-repair sector within the port.
TNPA states that the multiplier effect in the marine sector creates five jobs for every direct job. The drydock project created direct jobs for 29 skilled employees.
Richards Bay
The Richards Bay Coal Terminal (RBCT) is the key component of the port on the northern coast of KwaZulu-Natal but the port’s managers and associated Special Economic Zone (SEZ) are looking to diversify beyond the other types of freight which also form part of the port’s key mandate.
Chief among the diverse offerings being looked at are alternative energy generation and opportunities in the gas sector. A feasibility study is being done on a gas-to-power plant and a large new liquid petroleum gas import and storage terminal was recently built for Petredec by Bidvest Tank Terminals.
Ship repair is another option which will open up other opportunities in marine manufacturing.
TNPA has approved in principle the construction of a floating dock near the existing Small Craft quay. TNPA will have to create new onshore infrastructure and do some dredging before it can call for tenders from the private sector to build the dock, which would be able to handle large and ultra-large cargo vessels (Capesize).
Richards Bay is a deepwater port. Among its 13 berths are terminals that handle dry-bulk ores, minerals and break-bulk cargo.
The quay of the Richards Bay Coal Terminal (RBCT) is 2.2 km long with six berths and four ship-loaders. The 276 ha site contains a stockyard that can store 8.2-million tons while the terminal itself has a design capacity of 91-million tons per year. More than 900 ships visit RBCT every year.
***
First published as a Special Feature written by John Young in KwaZulu-Natal Business 2020/21 edition.
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A national competition found a Port Elizabeth automotive components company to be the country’s “Factory of the Year” in 2019. This follows the award of “Africa’s Industrialist of the Year” to a Port Elizabeth entrepreneur whose automation company exports to 18 countries.
It comes as no surprise that the automotive sector in the Eastern Cape produces excellence and innovation. The long-term presence of Mercedes-Benz South Africa, Volkswagen South Africa, Isuzu and Ford has now been bolstered by a multi-phase R11-billion investment by Beijing Automotive Group South Africa at the Coega Special Economic Zone (SEZ). The automotive components and service industry from which the two award-winners sprung is similarly diverse, with everything from tyres, windshields and batteries to catalytic converters being manufactured and exported.
Eberspächer South Africa, an exhaust systems manufacturer, won the 2019 Factory of the Year competition, which is run by management consultants AT Kearney. Quinton Uren won the Industrialist award for the work of his company, Jendamark Automation.
The manufacturing assembly solutions that the company creates in Port Elizabeth are exported to 18 countries. International orders make up 90% of the company’s business.
The kind of technical excellence represented by the two award winners is something of a signal of a way forward for the regional economy – investment in high-value manufacturing and services to stimulate growth and job creation.
The investment pathway presented by the Eastern Cape Development Corporation (ECDC) in preparation for the 2019 Eastern Cape Investment Conference specified nine sectors within manufacturing where the province wants to attract investment:
Maritime
Pharmaceuticals
Green/renewables
Agri-processing
Materials
Light manufacturing
Automotive
Petrochemicals
Capital goods.
The ECDC, the official investment promotion agency of the Eastern Cape, further outlined the factors that make the province an attractive investment destination: transport infrastructure, land, labour, government incentives and raw materials. Sectors with high potential in the province include agriculture, mining and energy, manufacturing, tourism, construction and knowledge-based services.
Eastern Cape Premier Oscar Mabuyane reported in 2019 that several large investment commitments have been made in the province. At the time of the conference he was MEC for Economic Development, Environmental Affairs and Tourism. He cited:
SAB, R438-million plant upgrade
Mercedes-Benz SA, R10-billion
Aspen Pharmacare, R3.4-billion
Nestlé, R663-million
Yekani Technologies, R1-billion at Coega SEZ
MultiChoice, R900-million at ELIDZ
Volkswagen SA, R6.1-billion
BAIC, R11-billion at Coega SEZ.
Since that conference, mining company Bushveld Minerals has announced that it will spend about R150-million on a vanadium electrolyte plant in East London. The product will be used in vanadium redox flow batteries by Bushveld and by international customers. East London is home to First National Battery, a subsidiary of Metair.
The presence of two Special Economic Zones (SEZs) in the province helps make the Eastern Cape attractive to investors. The facility in East London is in the process of changing its official status from Industrial Development Zone (IDZ) to SEZ but it remains a kind of SEZ.
In the period March 2019 to January 2020, the Coega SEZ (shown in the main picture) signed four new lease agreements with organisations that will collectively invest more than R100-million. This comes after a most productive 2018/19 period when R2.6-billion was invested by 18 entities. The variety of investments received by the two SEZs is detailed further in a separate article elsewhere in this journal.
A work bench in the country’s top factory. Image: Eberspächer South Africa
Perhaps the most consequential investments into the SEZs are in the automotive and energy sectors. Although the automotive investments are not game-changers in the sense that a new sector is being introduced, the scale of the investments is impressive. With two new Chinese car-makers (FAW and BAIC) in the Coega SEZ, increased production volumes will ensure that jobs are created. The sector already accounts for more than 400 000 jobs in the province.
In support of tourist initiatives in the eastern parts of the province and to bolster the economy of rural areas, the South African National Roads Agency is working on projects valued at nearly R7-billion, while the project pipeline for to 2021/22 is budgeted at more than R5-billion.
Oil and gas
The oil and gas sector could ignite a whole new type of economy, and kickstart the Oceans Economy. National government has named the Coega SEZ as the potential site for a 1 000 MW Liquefied Natural Gas (LNG) plant. The value to the regional economy of the project is estimated at R25-billion. A gas-fired power plant (Dedisa) is operating at Coega and there are plans to expand this sector.
Since the company Aegean Bunkering Marine Services was licensed in 2016 by the South African Maritime Safety Authority (SAMSA) and Transnet to supply bunker fuel to ships passing through Algoa Bay, many additional ships have used these services, adding more than R70-million to the local economy. If the drive to convert to oil and gas is successful (and the hope is that feedstock will come from offshore gasfields once they are developed) then a string of downstream benefits could accrue.
Provincial authorities are working with SAMSA to ensure that the province’s ports play a role in bunkering and supplies to the oil and gas sector.
The Provincial Government of the Eastern Cape is developing an Oceans Economy Master Plan which will include provisions to support small-scale fishers and to develop the small harbours at Port St Johns, Cape St Francis and Port Alfred. Other areas for strategic development include Coffee Bay, Mdumbi and Port Grosvenor on the Wild Coast.
Port Elizabeth is gearing up to embrace the Oceans Economy. A new national headquarters of the South African International Maritime Institute opened in the city, and the Oceans Campus of Nelson Mandela University will devote its resources to researching how best the province and country can exploit the maritime sector.
These institutions will support an existing provincial maritime economy which is underpinned by three major ports: Port Elizabeth, East London and Ngqura. Port Elizabeth’s major cargoes are manganese and vehicles while both East London and Ngqura support Special Economic Zones (SEZs). There are plans to move manganese stockpiles to Ngqura which will free up space for a waterfront development in the Port Elizabeth harbour.
Geography
The Eastern Cape extends over 169 580 square kilometres, representing 13.9% of South Africa’s land mass. The dry western interior is one of the country’s premier sheep-rearing destinations and it is the home of the mohair industry.
The mountainous regions of the north and east of the province support timber plantations while the coastal belt in the south-west is well-watered and is good for dairy farming. The province has spectacular beaches stretching from the surfer’s paradise at Jeffreys Bay all the way to the famed Wild Coast. Two major airports at Port Elizabeth and East London provide good air links and smaller towns such as Mthatha and Bhisho have airports. Mthatha is served by SA Express.
Municipalities
The Eastern Cape has six district municipalities and two metropolitan municipalities.
Buffalo City Metropolitan Municipality
Towns: East London, King Williams Town
The Port of East London is South Africa’s only river port. The airport, rail links and the East London IDZ contribute to making this an important regional centre. Buffalo City hosts a variety of manufacturers from vehicles to batteries and cotton textiles and is responsible for 19.6% of provincial GDP.
There are many opportunities for agri-processing because of the fertile hinterland and as part of the Sunshine Coast, tourism is an important contributor to the local economy.
Nelson Mandela Bay Metropolitan Municipality
Towns: Port Elizabeth, Uitenhage, Despatch
With two ports, a large airport and a concentration of manufacturing concerns, the Nelson Mandela Bay metropole is one of the province’s key economic drivers. It contributes 38.7% to provincial GDP. Volkswagen, General Motors and Ford are all located within the municipality, as are several automotive supplier companies. Aspen, a pharmaceutical company, and South African Breweries are examples of other large concerns. Nelson Mandela Bay has a population of 1.1-million and many educational institutions.
The Nelson Mandela Bay Stadium and St George’s Park cricket ground host provincial and international sports matches. Superb beaches and plentiful outdoor options make the area a popular tourist stop. The Addo Elephant National Park is less than an hour’s drive from the Port Elizabeth city centre.
Alfred Nzo District Municipality
Towns: Matatiele, Mount Frere, Mount Ayliff
The smallest district is in the mountainous north-east, with hiking trails for tourists. There is scope for expansion of tourist activities, and a transfrontier park between South Africa and Lesotho could boost the area’s economy. Subsistence agriculture and forestry are the major economic activities.
Amathole District Municipality
Towns: Cathcart, Stutterheim, Morgan’s Bay, Willowvale, Butterworth, Alice, Bedford
The rural Amathole District surrounds the metro-politan area of Buffalo City. Pineapple and forestry are two of the most important agricultural activities. Popular resorts on the Wild Coast attract many tourists to the area. Hogsback and other towns near the Amatole Mountains offer beautiful scenery and popular beaches. Alice hosts the main campus of the University of Fort Hare.
Chris Hani District Municipality
Towns: Middelburg, Molteno, Dordrecht, Cradock, Queenstown, Lady Frere, Elliot
Sheep farming is an important part of the economy. Some coal is found in the north and tourist activities include fly-fishing. The Foodcorp factory in Molteno manufactures Ouma rusks. Queenstown is a centre for cattle farming and has some manufacturing activities.
The Mountain Zebra National Park is near Cradock. The Grootfontein Agricultural College and Research Station is in Middelburg, and the Marlow Agricultural College is near Cradock.
Joe Gqabi District Municipality
Towns: Aliwal North, Burgersdorp, Lady Grey, Rhodes, Barkly East, Ugie
Cattle and sheep farming make up 80% of land use, while commercial forestry is a big contributor to employment. There are large forestry plantations at Ugie and Mount Fletcher.
Maize is grown along the Orange River and wheat in the foothills of the Drakensberg mountains. Tiffindell has been revived as a ski resort. The village of Rhodes hosts a “Stoepsit” festival in February.
OR Tambo District Municipality
Towns: Mthatha, Coffee Bay, Port St Johns, Qumbu, Bizana, Flagstaff
OR Tambo District Municipality encompasses some of the province’s least-developed areas and contains one of South Africa’s most important ecological areas, the Pondoland Centre of Plant Endemism. There is mining in some areas but plans for titanium mining on seaside dunes are being contested. A Wild Coast Spatial Development Initiative exists to plot further development. Forestry is a big employer.
Sarah Baartman District Municipality
Towns: Graaff-Reinet, Humansdorp, Jeffreys Bay, Makhanda (Grahamstown)
The western part of the province contains the biggest municipality geographically. Large commercial farms in the Karoo produce high-quality meat, wool and mohair, while the coastal belt has dairy farming and some forestry.
The Kouga Valley is a big deciduous fruit producer, while the Kirkwood/Addo area is known for its citrus. Sarah Baartman has three of the region’s national parks and several private game farms. Makhanda hosts the National Arts Festival, Rhodes University and several fine schools.
Eastern Cape Province regional overview by John Young, Eastern Cape Business 2020 edition.
Entering the green and sustainable finance space is a real opportunity for financial services to be a force for good. In Guernsey, where we have taken a stake at the forefront of financing climate change, we see it as finance with purpose – binding together a sustainable economy with a sustainable plan for ethical living.
The potential for transition to a low-carbon economy is huge, and finance can very much be part of this solution.
Guernsey, a global finance centre providing specialist services for a sophisticated client base across the world, has really taken a stake in green and sustainable finance in recent years.
In June we hosted online our own Sustainable Finance Week, a series of daily webinars and podcasts with leading figures from sustainable finance drawn from UK, Europe and Hong Kong. You can listen back to our discussions around private capital’s role in greening the global economy, here: https://www.weareguernsey.com/finance-events/2020/sustainable-finance-week/
Two years ago Guernsey introduced the Guernsey Green Fund, the world’s first regulated green fund product, enabling any Guernsey fund to be certified as green, based on an assessment of investment credentials against an internationally-recognised taxonomy.
Our industry steering group Guernsey Green Finance has become a member of the United Nations’ Financial Centres for Sustainability (FC4S) network – alongside more than 20 global finance centres including London, Paris, Hong Kong and Shanghai.
There is now global recognition of the commercial opportunity presented by green finance, as well as the environmental imperative, as highlighted by the International Panel on Climate Change’s (IPCC) report for climate action to be taken to restrict global warming to a maximum of 1.5 °C over the next dozen years.
There are challenges. The value chain must be untangled to unlock the private capital needed to make green finance much more widely available through society. Then where there is a need for capital from issuers, there will be opportunity for investors.
Dr Andy Sloan, Guernsey Finance
The big challenge facing us all in green finance is the aspiration and action gap. Some people are very committed – but that does not always translate into activity on the ground.
We are talking about trillions of pounds-worth of financing required to find its way into real assets and climate mitigation projects. Blockers include a lack of transparent product, and a lack of consistent standards, so it is good to see moves continuing to develop a standard taxonomy.
We need to start shifting gears and to funnel capital investment into projects around the world. In my view, the demand is clearly there, both from investors looking for green assets, and for emerging technologies and developing green infrastructure looking for funding. What is currently missing is the means to bring the two together.
Having confidence in the product is key, and that is our rationale with the Guernsey Green Fund. I can only see the market for similar products continuing to grow. It is our purpose as financial centres to help smooth and facilitate the growth of green finance around the globe, and to connect investors to opportunities. This will be critical to meeting IPCC targets and building a sustainable future for the husbandry of our planet.
A few weeks ago, when the pandemic was nearing its peak, a number of hand-selected CEOs and senior decision-makers from mining corporates, the finance community and service providers rated the impact of Covid-19 on African Mining.
In the report you can see the initial impact on their African businesses, operations and investment decisions, and their forecasts on investment levels and procurement levels over the next 6-12 months.
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