DRAFT COPY

AFRICA STRATEGY
Conversation Prep Notes (Draft)

Purpose: Personal preparatory notes for conversation

Type: Market Research
Date: 2014
Purpose: New market entry
Interested party: Unit of S&P 1000 corporation
Sector: Power equipment

Table of Contents
(Topics covered in this report)
Executive Summary……………………………………………………3
Opportunities in Africa………………………………………………..7
Macro-Economic Indicators…………………………………………15
Target Countries……………………………………………………….23
Target Sector Review………………………………………………….31
Strategic Issues………………………………………………………..56

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 DRAFT COPY Executive Summary

OVERVIEW

SUMMARY
This slide deck contains parts of personal notes I prepared in advance of a meeting. However,
this slide deck was never completed since I finished the rest of my notes by pen & paper during
my flight in.

THE SITUATION
I had a meeting with a division of a S&P 1000 corporation in late Spring 2014. During the
meeting I planned to discuss the rapidly growing market for power equipment and services in
Sub-Saharan Africa. I planned to talk about several topics, including how strong the customer
demand was, which products were most suitable for initial market introduction and what type of
market entry was most practical. I also needed to address uncertainties around the West Africa
equipment market at the time that had been caused by recent security concerns as well as pubic
health issues caused by an ongoing pandemic.

These notes include parts of the analysis I conducted in preparation for that meeting.

NOTICE:
The data, analytical techniques and management-problem-solving methodologies used here are acceptable
only for personal preparation. They are not of high enough quality for presentation to an executive team.

In addition, the analysis here has not yet been completed. That is why this is marked as a “DRAFT COPY”

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Source: World Bank, Country Reports, IMF, Expert Analysis
 DRAFT COPY Opportunities

UNMET DEMAND (POWER CONSUMPTION) OF AFRICAN COUNTRIES

Top 10 countries ranked by unmet demand

Top 7 African countries by Unmet in power consumption (Millions of MW·hr/yr)
Power Consumption Demand
(% of total demand)

Unmet Power Consumption demand

Unmet Power Consumption demand was estimated as follows:
Demand = (std consumption per capita*population) – current
consumption
Standard consumption per capita taken as 10,198 KWh/year
based on World Bank estimates for high income countries

Note:
Ethiopia is working to commission an export-oriented 6GW plant in 2015 that will also change the power situation there

NIGERIA
NIGERIA AND
AND ETHIOPIA
ETHIOPIA STAND
STAND OUT
OUT
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Source: World Bank, Country Reports, IMF
 DRAFT COPY Opportunities

UNMET DEMAND (POWER CAPACITY) OF AFRICAN COUNTRIES

Top 10 countries ranked by unmet demand in
2011 Power Capacity (GW)
Top 7 African countries by Unmet
2011 Power Capacity Demand
(% of total demand)

Unmet Power Capacity demand

Unmet Power Capacity demand was estimated as follows:
Demand = (std capacity per capita*population) – current capacity
Standard capacity per capita was estimated as follows:
Standard capacity per capita = 83% * US capacity per capita
For context, Nigeria aims to add 35GW in the next 5-years!

Note:
Ethiopia is working to commission an export-oriented 6GW plant in 2015 that will also change the power situation there

NIGERIA
NIGERIA AND
AND ETHIOPIA
ETHIOPIA STAND
STAND OUT
OUT
4
Source: World Bank, Country Reports, IMF