July 2012 Whisperings on African Business Development and Opportunities by Africa Project Access

A major issue for suppliers of engineering products such as pressure vessels to African Projects is the area of JURISDICTION FOR AFRICAN PRODUCT STANDARDS AND REGULATIONS. It is reported that in Mozambique, South African company, SASOL has managed to secure the application of South African regulations but smaller suppliers require guidelines regarding whether Mozambican regulations apply and if so, greater clarity on the relevant stipulations. Lack of clarity on jurisdiction for procurement has slowed the progress of agreed projects such as the Kazangula Bridge between Botswana and Zambia.

It is reported that a REGIONAL PROJECTS AND CORRIDORS STRATEGY DOCUMENT FOR THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) should be made public in August 2012. The document will identify and outline key regional projects in SADC member states. The total value of these projects is expected to be significant.

EUROPEAN EXPORTS TO AFRICA are increasing as they seek alternate markets to their own struggling markets. For example, Irish exports to Nigeria have risen 56%.

US company, ANARDARKO PETROLEUM has recently announced MORE MOZAMBICAN GAS FINDS off the far north coast of the country. Observers believe that the combined offshore gas resource of Mozambique’s Rovuma Basin and Tanzania’s Mtwara area could be as high as five trillion cubic feet. This would be nearly double the reserves of Algeria and approximately the same as Saudi Arabia.

There is increasing reference by operators and observers to the development of the QUELIMANE PORT, MOZAMBIQUE as an outlet for coal exports from the Zambezi Valley. Brazilian mining company, VALE is committed to the Nacala port and the Sena rail line and Beira port have limitations. Some of the other operators have identified Quelimane as an alternative.

The WESTERN CAPE PROVINCE IN SOUTH AFRICA is playing a major role in South Africa’s trade and investment with and into Sub-Saharan Africa. Some 70% of South Africa’s foreign direct investment into the continent was from the province notably in the leisure sector. Some success is being registered with the African west coast and Angola becoming the Western Cape’s main African market. This is despite the slow pace of the Cape Town harbour and Saldanha Bay initiatives relating to the maintenance and repair of oil rigs from the Gulf of Guinea.

Africa Project Access is a South African company providing specialist consulting services and information regarding projects in Africa.  Its contact details are –

Contact person:                           Paul Runge

Telephone:                                  +27(0)11 465 6770

Fax:                                            +27(0)11 465 9580

Email:                                         afric.projs@pixie.co.za

Website:                                     www.africaprojectaccess.co.za