Government Investments in Infrastructure Drive Angola’s Electricity Industry, Reveals Frost & Sullivan

CAPE TOWN, South Africa -

Frost & Sullivan forecasts that spending on electricity infrastructure in Angola will reach US$8.4 billion over the next few years. Together with the country’s robust economic growth, this massive government investment in infrastructure development is set to boost Angola’s electricity industry.

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New analysis from Frost & Sullivan (www.energy.frost.com), Strategic Analysis of the Angolan Electricity Industry, finds that Angola’s two state-owned utilities earned revenues of US$356.0 million in 2008 and estimates this to reach US$450.0 million in 2015. The following application sectors are covered in this analysis: construction, government/utilities, industrial, oil & gas and mining.

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

“Angola’s rapid economic growth has undoubtedly resulted in high levels of demand for electricity by both residential and commercial end users,” notes Frost & Sullivan Programme Manager Cornelis van der Waal. “Despite the current financial crisis, the Angolan government is expected to continue its reconstruction programme, with greater emphasis on the development of electricity infrastructure.”

Frost & Sullivan expects the Angolan power industry to grow by 20 per cent by 2015. The Angolan Government has also channelled US$2.5 billion into the power sector to improve its capacity and efficiency. Such trends augur well for the future of the electricity industry in the country.

However, the poor state of existing infrastructure and lack of skilled labour threaten to impede rapid industry development. In addition, the high level of capital required to build a power plant is a major factor hampering industry expansion.

“Despite massive government investments, inadequate infrastructure is one of the key obstacles to the growth of the Angolan electricity industry,” says Van der Waal. “The poor state of ports and roads, as well as sub-economic tariffs, is also likely to slow down the growth of this industry over the next two to five years.”

In accordance with the Angolan programme for the development of the electricity industry, the country will need about 800 engineers to meet the development needs of the industry over the next five years.

“The country has a profound human resources crisis,” cautions Van der Waal. “This is forcing Chinese companies developing projects in Angola to import 95 per cent of their manpower, triggering criticism from international agencies.”

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

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Strategic Analysis of the Angolan Electricity Industry M3E3 Contact: Patrick Cairns Corporate Communications - Africa P: +27-18-464-2402 E: patrick.cairns@frost.com

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Source: Frost & Sullivan

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com