SADC Infrastructure
Presentation

3rd Japan-Africa BusinessForum
Theme: Light and Power Southern Africa
Virtual Meeting
29 June to 8 July 2021

Contents
Introduction
Programmes

toSADC

InfrastructureKey Policies and Strategies
SADC Infrastructure Programme

Regional
Programmes
andProjects
Investments Opportunities
Challenges of Implementing Programmes andProjects amidst COVID 19 and Mitigating
MeasuresSuccess stories in Integrating Africa
Critical Success Factors for Project
Implementation
Conclusion

SADC Member States
 SADC was established as adevelopment coordinating
conference (SADCC) in 1980 andtransformed into SouthernAfrican Development
Community (SADC) in 1992.
 It is an inter-governmentalorganization 16 Southern
African Member States as at
August 2017.
 Combined Population of close
to 340,000,000 Inhabitants
3

Key Policy , Strategies and Implementation Frameworks• RISDP 2020–2030 covers six
strategic priority areas:• The Foundation: Peace,Security, and Good
Governance;• PillarI:
IndustrialDevelopment
andMarket Integration;• Pillar II: Infrastructure
Development in Supportof Regional Integration;• Pillar III: Social andHuman
CapitalDevelopment;• Cross-cutting
issuesincluding Gender, Youth,
Environment
andClimate Change, andDisasterRiskManagement; and• Strategic Managementof RISDP 2020–2030.

 Protocols on Transport, Communicationsand Meteorology, Energy and Water,Trade, Finance and Investment
 RIDMP-Regional
Infrastructure
Development Master Plan (2012-2027)
 SADC Corridors Development Strategy(2008),
 SADC Industrialisation Strategy and Road
Map (2015-2063)
 Declarations, Tripartite, Continental &International
AgreementsandConventions
 SAPP Pool Plan (2017)
 Renewable Energy and Energy Efficiency
Strategy and Action Plan 2016
 Regional Energy Access Strategy andAction Plan Regional Gas Masterplan Phase I
 Market and Investment Framework forSADC Power Projects
 SADC Industrial Energy Efficiency
Programme

SADC Energy Programme
Objectives - to facilitate and coordinate andachieve availability of sufficient, reliable,
least cost energy services that will assist in
the attainment of economic growth,industrialisation and the eradication ofpoverty whilst ensuring the environmentally
sustainable use of energy resources in theSADC Region

SADC Energy Sector Plan Key Areas

Developing
RegionalPowergeneration
andtransmission
projects

PromotingRenewableenergyResourcesand Energy
Efficiency
Subprogrammes

Developing Oiland Gas Production;
Refineries;
Pipelines andStorage
capacity;Regional Gas
Committee

Coal,Nuclear
PowerandEnergy&Climate
ChangeEnergy Projects

Completed Feasibility Studies:
ZIZABONA; MOMA, BOSA, Alaska-Sherwood•DRC•Tanzania•Angola•Malawi•Zambia•Namibia•Botswana•South Africa

Preparatory Studies to be completed in 2021:
Angola – Namibia Interconnector (SADC
PPDF)
Kolwezi – Solwezi Transmission Line (DRCZambia) (NEPAD IPPF)

Mozambique – Zambia Interconnector(NEPAD IPPF/USTDA/WB)
Zambia – Tanzania Interconnector (WB/EU)

Feasibility Studies are in progress for:
Inga – Soyo (DRC-Angola) Interconnector•Zimbabwe(World Bank)
Malawi – Zambia Interconnector (WorldBank)
Mozambique – Tanzania Interconnector(NEPAD IPPF)
Luapula hydropower project (NEPAD•Mozambique
IPPF/World Bank)
Pipeline projects:•SwazilandAngola – Zambia Interconnector
Botswana – Namibia Interconnector•Lesotho
Batoka Gorge Hydro – Transmission Line
Baynes Hydro – Transmission Line

Regional Programmes and Projects
Investments Opportunities• SADC Project Preparation and Development
Facility• List of infrastructure projects ready for investments• Regional Transmission Infrastructure Financing
Facility• Potential transmission corridors for investments• SADC Regional Gas Master Plan Phase II• Investment blueprint for gas infrastructure, Gas topower projects• Mega Solar for Southern Africa• Botswana and Namibia

RTIFF | Why, what and how
A Facility that will address the lack of investments inregional transmission infrastructure in SADC andsupport the objectives of SAPP Members
1

Why integration?

• Regional-levelo Cost savings of $37-42 billion for theregion (SAPP Pool Plan)o Integration of low-carbon sources andimproved climate resilienceo Enhanced security of supplyo Access to more cost-efficient sourceso Ability to mitigate supply shocks​
o Increased access/electrification

1

What needs to be done?

• Growing but still underdeveloped
trading market & transmission
bottlenecks• The SAPP Pool Plan gives a strong• The business-as-usual approach ofdeveloping transmission (bilateralcommercial trading agreement) has
produced limited results

starting point for identifying
transmission project• RTIFF as a regional facility can• However, further support is• RTIFF is underpinned by a newrequired to strengthen the businesscases for specific projects andaccelerate financing• Country-level: All countries havepositive economic benefits, although at
different scale

How can it be achieved?

1

provide an innovative solution
approach to developing andfinancing priority regionaltransmission projects

Enabled and supported byPriority measures, including:• Cost-reflective transmission pricing methodology•

Congestion management & transmission capacity allocation

9

Priority RTIFF Corridors
3 priority transmission corridors have been identified. They are made up of 8 highbenefit projects and internal country transmission projects

West corridor (North – South)• DRC-Ang
Capex = $0.8b• ANNA
Econ = $16b
• RSANam

Central corridor (East – West)• MaMoCapex = $0.4b• MOZA
Econ = $5b• ZIZA

Central (North – South)• Zam-TanCapex = $0.8b• ZIZA
Econ = $17b
• ZISA

Greater regional integration delivers economic benefits

On average, each transmission
line has economic benefit of$4.3b (NPV) vs. an average
CAPEX of $203m

This suggests that $1 of CAPEX
unlocks $21 in economicbenefits

10Challenges of Implementing Programmes andProjects amidst COVID 19 and Mitigating
Measures• Slow completion of projects due to COVID 19 travel
restrictions – engagements of consultants inMember States to carryout part of the studies• Expiring of facility agreement during the COVID 19
pandemic – request of no cost extensions from ICPs
to facility completion of projects• The use of small Member States Task Teams has
worked very well and has proved effective forgetting support from Member StatesSuccess stories in Integrating Africa• Financial close of the Malawi - MozambiqueInterconnector• Increase in Commissioned Generation Projects• Steady progress on the Priority Interconnectors:
ANNA and Zam-Tan Projects
SADC Regional Commissioned Generation Capacity, MW4500
4000
3500
3000
2500
2000
1500100050002004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Capacity in MW

Critical Success Factors For Project
Implementation
Commitment by Member States and related agencies
Creation and strengthening of oversight andimplementing institutions
Appropriate policy, institutional and regulatory
framework
Provision of a robust monitoring and evaluation system
Availability of a pipeline of bankable projects
Financial sustainability of projects fundingPartnership with private sector in infrastructuredevelopment
Adoption of the user pays principle

CONCLUSION
Project Preparation andImplementation Mechanisms
 Accelerated and coordinated policy
reforms and harmonization of laws,
regulations and standards that affectinfrastructure design, development,construction, maintenance andoperations; There is a need to continue investingin building the capacity, tools andsystems to bring projects to fruition;
 Closing SADC’s infrastructure gap
may call for experimenting with newmodels of project delivery; Exchanges offer a way for countries
to share experiences and developsolutions to challenges; and Better management structures will
improve project implementation.

Resource Mobilisation,
Marketing and Financing

SADC needs to expand
the availability ofproject preparation
financing and attract
new sources of capitalContacts:
Mapolao Mokoena : mmokoena@sadc.int
Eng. Edvan Moyo: edmoyo@sadc.int