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Economic Growth Energises Mozambique's Electricity Industry Finds Frost & Sullivan - New analysis from Frost & Sullivan, Strategic Analysis of the Mozambican Electricity Industry, finds that the industry earned revenues of $202.0 million in 2008 and estimates to reach $455.50 million in 2015
Economic Growth Energises Mozambique's Electricity Industry Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2009/10/13 - New analysis from Frost & Sullivan, Strategic Analysis of the Mozambican Electricity Industry, finds that the industry earned revenues of $202.0 million in 2008 and estimates to reach $455.50 million in 2015.

   
 
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Due to poor planning, decades of under-investment and deteriorating infrastructure, the provision of electricity in Mozambique has been deficient. However, outstanding economic growth and the government rural electrification programme are galvanising the electricity industry in the country.

New analysis from Frost & Sullivan (energy.frost.com), Strategic Analysis of the Mozambican Electricity Industry, finds that the industry earned revenues of $202.0 million in 2008 and estimates to reach $455.50 million in 2015.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be sent to you by email.

"Major investments in electricity projects in Mozambique have the potential to add 9,000 MW of electricity to the Southern African power pool," notes Frost & Sullivan Industry Analyst Jeannot Boussougouth. "Despite the global financial crisis, the demand for electricity is forecast to grow by 11.0 per cent until 2015 as a result of a boom in the agriculture and manufacturing sectors, as well as a strong rural electrification programme."

Mozambique is rich in energy resources, but has lacked the financial and human resources to develop its electricity industry. It is however now government policy to develop the potential of the electricity industry in order to increase the access to electricity, while enhancing the environmental sustainability of electricity generation.

"Accordingly, the Mozambican electricity industry is expected to grow by 15.0 per cent by 2015," says Boussougouth. "The country's outstanding economic growth has provided it with credibility, attracting more foreign direct investment."

However, theft and vandalism of electrical equipment pose a major threat to industry prospects. In addition, the high level of capital required to build a power plant is a significant hurdle to industry growth.

"The poor state of infrastructure and low tariffs are the main factors hampering the growth of the Mozambican electricity industry," remarks Assis. "Moreover, the country has an acute shortage of skilled labour, forcing the Mozambican government to import part of its manpower, from Portugal, Brazil, Switzerland and South Africa."

There are other key challenges, such as sub-economic tariffs that are likely to retard the growth of the electricity industry over the next two to five years.

"Promisingly, the Mozambican government is anticipated to invest about $700 million in an effort to expand its grid to the entire country by 2020," says Boussougouth. "Such trends will positively impact market expansion."

Strategic Analysis of the Mozambican Electricity Industry is part of the Energy & Power Growth Partnership Service programme, which also includes research in the following markets: Mozambican Power Generator & Equipment Suppliers, Mozambican Power Suppliers and, Mozambican Power Distributors. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

Strategic Analysis of the Mozambican Electricity Industry / M40A

 
 
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Economic Growth Energises Mozambique's Electricity Industry Finds Frost & Sullivan

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