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Power to be one of the most tradable commodities in Africa

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Staff writer |
Power Africa
Energy in Africa   Reliable and stable transmission networks

Power trading agreements between African countries will be a dominant theme in the electricity markets of south-central African nations in the next three to five years, says Standard Bank.

Mozambique, which currently has the potential to produce more electricity than its economy requires at present, is likely to dominate the supply-side of this trading market with Namibia, Zambia and Botswana expected be the main purchasers in the region, after South Africa.

The biggest challenge to these arrangements will be reliable and stable transmission networks to facilitate the seamless transfer of electricity between sellers and purchasers.

These networks require significant co-operation between neighbouring countries, so the role of the Southern African Power Pool (SAPP) in ensuring cross-border planning, investment and trading between member states remains critical.

"Power will increasingly become one of the most tradable commodities across the region in the coming years given the electricity shortage we are seeing across Southern Africa," said Cody Aduloju, executive in South Africa Standard Bank's Power and Infrastructure division.


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