Leading international cable manufacturer Nexans, plans to expand its operations in sub-Saharan Africa to make cables for domestic connectivity and supply renewable energy industries. The company which until now, focused mainly on northwest Africa, is evaluating on expanding to eastern or southern Africa says its Executive Vice President, Vijay Mahadevan, adding that a decision is likely to be taken in 2021. The countries being considered are “stable” in governance terms, he notes.
The Company will choose between eastern and southern Africa rather than trying to enter both regions at the same time and the expansion, intended to create long-term manufacturing capability rather than to service one-off projects, is likely to create between 100 and 500 jobs. It could be carried out alone or with joint-venture partners. It will equally be on the lookout for local suppliers to avoid carbon-costly long-haul logistics. Suppliers will have to meet the company’s environmental, social and governance (ESG) criteria.
Dispruption to Nexans operations in Africa has been “minimal.” At the start of the COVID-19 pandemic, Nexans’ operations in China meant that the company was able to learn fast and transmit key learnings, says Mahadevan, who is also executive vice president for the Middle East, Russia and South America. Sanitary measures were in place and masks available before they became the norm, the Company says. Nexans in September committed to achieving carbon neutrality by 2030, through a 4.2% average annual reduction of company greenhouse gas emissions. Future R&D projects will be 100% dedicated to energy efficiency and energy transition.
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It admitted that the missing element is scale as Africa needs large-scale deployment of renewable energy if it is to get anywhere near meeting future electricity needs. According to the International Energy Agency (IEA), current and planned efforts to provide access to modern energy services “barely outpace population growth”. The result, the IEA says, is that in 2040, 90% of the global population without access to modern energy will be living in Africa.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer