Africa’s energy transition will require strong investment commitment if the continent is to attain net zero emissions. CNBC Africa’s Aby Agina spoke exclusively to Manish Pant, Executive Vice President for Schneider Electric.
Africa’s energy transition will require strong investment commitment if the continent is to attain net zero emissions. I spoke to Manish Pant, Executive Vice President for Schneider Electric. Schneider has always viewed Africa as just any other part of the world that is very crucial to us. Today in Africa, we have been present for almost 54 years in South Africa, over 30 years in Egypt, similarly in the western side in Morocco, 10 years in Kenya, and we are very happy to be here and excited to contribute towards the growth of the continent. Schneider Electric is the digital partner for sustainability and efficiency for our customers and the way we work is through a network of partners and really be part of the ecosystem in which we operate. So today we have been building this ecosystem which is deep-rooted in all the 50 countries that we operate in, together with I would say 12 distribution centers and three manufacturing units that we have that's been built over these years. So strong commitment to Africa, partnering in terms of growth and bringing the most latest and advanced solutions that would take the continent in its growth journey and more importantly making it net zero and green right from the beginning. Amazing milestones indeed and I just want to get more insights from you Manish in terms of how have these initiatives transformed local communities considering that the continent is still heavily underpowered when it comes to electricity access and of course development-wise. So it is something that is I would say the dark side that we have to clearly change and today almost 600 to 700 million people don't have access to energy and we feel that since we are in the business of energy it is a rightful duty and responsibility to work on this. So access to energy is clearly one of the key tenets of what we do here. Schneider Electric is an impact company so we want to do good as well as we want to do well and as part of this we are committed to starting from access to energy which can change the lives of the people because access to energy is access to digital and this is what we call as life is on at Schneider Electric. So we are doing this quite actively. Overall in the world we have taken a commitment that we'll have 50 million people who would have access to energy and we are actually set up this target for 2025 but I'm very pleased to say that we have already exceeded that and including a large part of that coming from here in Africa. Having said that we are also working on access to financing so the other way to transform is how we could enable those people who are you know bringing in social businesses that could bring electricity to hospitals, to schools and again Schneider Electric has been quite active with our social impact investment. We have just finished one fund, deployment of one fund and we are starting another fund here to contribute towards these initiatives. So I would say overall key part of our mission here in Africa is to while we are partners and seeing how we can contribute to the economic growth but also to see how we can you know do good and make sure that we are changing the lives of the people here. And speaking about changing the lives of people here, Africa has one of the highest number of young people who are unemployed and this is causing a ticking time bomb in many of these economies and looking at some of the initiatives you've just talked about, we're looking at the startup community here in Africa being one of the most vibrant considering that SMEs are regarded as the engines of growth and I just want to know what is Schneider doing in that space especially when it comes to empowering this demography in society and how much are you looking to invest towards this? Clearly and you know in terms of making a difference, how we are able to bring and train the youth of Africa, I think it's the youngest continent in the world and therefore the future of the world so we have to see how we are bringing the new skills of digital, of energy, of electricity to them. This is another area just as there is access to energy, there's access to training or access to education which is a core part of our philosophy and here we are working with a lot of other social institutions like INCO and Don Bosco and others in the region that we have been training youth through training centers that have been deployed through them and again we have, for ourselves, we have taken a target of training 1 million people and we are quite advanced in terms of what we have been doing put together. This one we would like to do more of and I know this is tip of the iceberg. The other part of why it is so important is as we are going through this energy transition, this is while it's a challenge is also creating a wonderful opportunity for people to come on stream because new jobs with new skills are going to be created and again as Schneider Electric we think it's our responsibility to see how we could contribute towards that and we are working on it. I would continue to say you mentioned in terms of the startup community here, on our bit we have what we are doing in terms of skill development is while we are training we have 2,000 people here roughly, we continue to hire every year fresh graduates coming out of universities and training them both in Africa but also we have an Africa Explorer program that we take them to other parts of Schneider and expose them both in terms of business as well as in terms of technology so that they can come back and deploy. We also run innovation incubation labs with a lot of school students and university students so that they can participate in and come out with new and unique solutions for the challenge of decarbonization that we have ahead of us. Amazing and looking at the grand scheme of things Manish, Africa has been said to be the continent of the future, it is the next frontier but in equal measure what are some of the challenges investing in Africa in this space and time where we are seeing a lot of countries trying to lure investment into the continent? So yeah I think the challenges that we face today are to some degree the same everywhere in the world whether it's about climate change which is what we are facing here and Africa of course is affected by it, it's about energy transition which I think in Africa there's a great opportunity because you're able to leapfrog as a lot of Africa is still to be built. In fact some of our studies are saying that you know 80% of what Africa has to still to be built in the coming years and this is where it's a great opportunity to start from you know having a decarbonized both in terms of embodied carbon as well as in terms of operating carbon for those buildings and infrastructure that is going to come in. The wealth creation here is clearly something that is going to happen so we are technology can contribute towards that. I would say that digitization is the next one that we are that we are seeing as a big opportunity here. We have to make energy digital and once we are making it digital we are able to save energy, we are able to make improvements and also able to use new technologies like digital twin etc that can help make I would say our economic assets much more productive, much more efficient and be able to see how we can get maximum out of them. So while there are challenges I think there are also opportunities at Schneider Electric that commitment to see how we are able to bring those skills to the people in Africa so that they can take up those challenges is what is our contribution towards it. Right and before I let you go Manish of course Schneider has an impressive footprint across Africa and beyond the countries you're already operating in where is the next element of growth coming from where are you seeing pockets of opportunity in the continent and talk to me about how big is the watchers you have in terms of investment into the continent. You know I would say today that if you look at different sides of Africa whether it's western Africa whether it's northern Africa or sub-saharan Africa it is we see opportunities everywhere I think what I see very what I would say has changed today is I really find the governments we are here in Rwanda and I'm truly impressed with the commitment of the government in terms of economic growth and how it is able to bring development and contributing to the development of the nation state and this is a big change today we are seeing this all across global south I would say that today the governments are working harder than the private sector and this is true here in Africa as well and this is what is going to change things for us so we stay committed we are here to follow that economic growth we are here to contribute to that growth with our digital solutions this growth has to be with much lesser carbon intensity and we are here to see how we can bring solutions to that whether it's on demand side or it's on on the supply side and and and we continue to skill up train people and invest recently we we have just set up a new facility not so far from here in Dar es Salaam where we are assembling some electrical e-houses to contribute towards the development that is happening in the region so we will follow the development and we continue to invest more as that economic growth happens here in Africa.
Theme: Schneider Electric's pivotal role in driving Africa's renewable energy transformation and sustainability initiatives.
Africa's energy transition is a critical component in the continent's journey towards attaining net zero emissions. In an exclusive interview with CNBC Africa, Manish Pant, the Executive Vice President for Schneider Electric, discussed the company's significant presence in Africa and its commitment to driving sustainable growth and efficiency. With over five decades of experience in various African countries, Schneider Electric has established itself as a digital partner for sustainability, offering advanced solutions to foster economic development while promoting green energy initiatives across the continent. Schneider Electric's extensive network of partners in 50 African countries, supported by distribution centers and manufacturing units, underscores the company's dedication to Africa's progress. The firm's mission to empower local communities through access to energy aligns with its core values of driving positive impact while advancing business goals. Pant highlighted the company's commitment to providing energy access to millions of people and supporting social businesses focusing on essential services like healthcare and education. Moreover, Schneider Electric recognizes the youth demographic in Africa as a key stakeholder in the continent's future. With a focus on skill development and training, the company aims to equip young Africans with the digital and energy expertise needed to secure employment opportunities in the evolving energy sector. Through partnerships with training institutions and social organizations, Schneider Electric is working towards training one million individuals, contributing to both youth empowerment and the growth of the renewable energy industry. The interview with Manish Pant also shed light on the challenges and opportunities in investing in Africa's energy transition. Climate change and energy transition are universal concerns, but Africa's potential for innovation and sustainable development presents unique opportunities. With a vast portion of Africa's infrastructure yet to be developed, there is a chance to build with a focus on decarbonization and digitalization. Schneider Electric sees digitization as a key enabler for energy efficiency and productivity, emphasizing the importance of leveraging technology to maximize the continent's economic assets. Looking ahead, Schneider Electric envisions widespread growth opportunities across different regions of Africa. Pant highlighted the impressive commitment of African governments to drive economic growth and development, emphasizing the role of public-private partnerships in advancing sustainability goals. The company remains dedicated to supporting Africa's economic progress by providing digital solutions that reduce carbon intensity and enhance energy efficiency. In line with its commitment to the continent, Schneider Electric has recently expanded its operations in Dar es Salaam, Tanzania, with a new facility contributing to the region's development through the assembly of electrical e-houses. As Africa continues to evolve as a promising frontier for investment and sustainable growth, Schneider Electric stands poised to play a pivotal role in driving the continent's renewable energy transformation.
"Africa's potential for innovation and sustainable development presents unique opportunities. With a vast portion of Africa's infrastructure yet to be developed, there is a chance to build with a focus on decarbonization and digitalization."
['Schneider Electric', 'renewable energy', 'Africa', 'sustainability', 'energy access', 'youth empowerment', 'investment opportunities']