Country Analysis: Southern Africa and the Southern African Development Community

The following provides a brief economic and energy sector overview of Southern Africa, including the fourteen countries that make up the Southern African Development Community (SADC). SADC member-states are Angola, Botswana, Democratic Republic of Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. Overviews of non-SADC countries Comoros and Madagascar are also included.
The information contained in this report is the best available as of November 2002 and can change.

The Declaration and Treaty establishing the Southern African Development Community (SADC) was signed at the Summit of Heads of State or Government on July 17, 1992, in Windhoek, Namibia. SADC replaced the Southern African Development Coordination Conference (SADCC), in existence since 1980.
South Africa joined SADC in 1994 followed by Mauritius (1995), the Democratic Republic of Congo -- DRC (1997), and Seychelles (1997). Uganda's application for membership in SADC, submitted in the fall of 2000, is currently awaiting SADC approval. Comoros and Madagascar, with SADC-members Angola, DRC, Malawi, Mauritius, Namibia, Seychelles, Swaziland, Zambia and Zimbabwe, are members of the Common Market for Eastern and Southern Africa (COMESA).

Angola's President, Jose Eduardo dos Santos, is the current SADC Chairman. President dos Santos is continuing the process of restructuring the SADC mandate to focus on regional economic integration. Current SADC objectives include harmonization and rationalization of policies and strategies for sustainable development in all areas, as well as the successful implementation of the SADC Trade Protocol (Protocol).
The Protocol, which calls for an 85 % reduction of internal trade barriers, went into effect on September 1, 2000. The full implementation of the Protocol is on track and the region hopes to attain a free trade area by 2008. In October 2000, COMESA launched its own free trade regime, creating overlapping schedules with SADC for internal tariff reductions. Within the SADC region, the national currencies of Namibia, Lesotho, and Swaziland are linked to the South African rand through the Common Monetary Area (CMA). SADC members are working to eliminate exchange controls in preparation for an eventual single currency in the region.

Economic overview
In 2001, the combined Gross Domestic Product (GDP) for Southern Africa was estimated at $ 173.8 bn (see Table 1.). Regional economies are structurally diverse and at varying stages of development.
South Africa, the region's most developed economy, with a GDP of $ 113.3 bn nearly doubles the combined GDP of the other Southern African countries. While the region's economies grew at a combined rate of 2.2 % in 2001, the substantial external debt of individual states remains one of the region's greatest challenges. War (in Angola and DRC), and internal strife (Zimbabwe) have adversely affected economic performance in several states. The economies of Zimbabwe and DRC declined, and hyperinflation was rampant in Angola (153 %), DRC (337 %) and Zimbabwe (77 %).
Total regional exports, including intra-regional exports, were $ 48.5 bn in 2001. Southern Africa had a $ 5.3 bn trade surplus for 2001. The region's major export commodities were energy products (oil and coal) and various minerals including diamonds, gold, and copper.

Trade growth between the United States and Southern Africa was nearly flat in 2001 (up only 0.7 %). US exports to the region grew 5.7 % in 2001, to nearly $ 4 bn. US imports from Southern Africa fell by 1.4 % in 2001, to $ 8.8 bn. On December 31, 2001, President Bush approved the designation of 35 sub-Saharan African countries as eligible for tariff preferences under the African Growth and Opportunity Act (AGOA).
As required by the legislation, this annual determination signifies which countries are making continued progress toward a market-based economy, the rule of law, free trade, economic policies that will reduce poverty, and protection of worker's rights. Angola, Comoros, DRC and Zimbabwe were the only countries in the region not covered by AGOA. Although not included in AGOA, Angola was sub-Saharan Africa's third largest exporter to the United States in 2000 and 2001.

Energy overview
Southern Africa is a net energy exporter. In 2000, the countries of Southern Africa collectively consumed (see Table 2.) 5.47 quadrillion Btu of commercial energy (1.4 % of total world consumption) and produced 9.32 quadrillion Btu (2.3 % of total world production). Also in 2000, the region generated 119.2 mm tons of carbon emissions (1.9 % of the world total).
The region's dominant economy, South Africa, accounted for 84.9 % (4.64 quadrillion Btu) of energy consumption, 77.4 % (7.21 quadrillion Btu) of energy production, and 88.8 % (105.85 mm tons) of the region's carbon emissions.
Commercial energy resources in the region are diverse, with significant reserves of coal, petroleum, and natural gas. Electricity in Southern Africa is generated through thermal or hydroelectric resources (with one nuclear facility in South Africa). Natural gas is becoming more significant to the region's energy sector as fields off Mozambique, Namibia, South Africa and Tanzania are developed.

Due to the region's relatively small urban population (approximately 25.4 %), access to commercial energy sources is limited. The majority of Southern Africa's population still relies on the use of biofuel (wood and charcoal) as its primary source of energy. Biofuel accounts for approximately 75 % of total final energy demand in the region. The countries with the highest rates of biofuel consumption are Tanzania, Mozambique, Zimbabwe, Zambia and Malawi.
SADC representatives announced plans to elevate its energy technical unit (ETU) to a regional energy commission. The commission is being designed to facilitate regional integration in the energy sector. The ETU started its operations in April 2001 in Luanda, Angola.

Petroleum
Angola is Southern Africa's only significant oil producer, production averaged 742,000 bpd in 2001. Angolan oil production has averaged 900,000 bpd for the first six months of 2002. Angola's estimated proven crude reserves of 5.4 bn barrels constitute 96 % of the region's estimated proven crude reserves. Smaller reserves are found offshore DRC and South Africa.
The region's refineries are concentrated in South Africa, with additional refining capacity located in Angola, DRC, Madagascar, Tanzania and Zambia. In 2001, South Africa produced about 163,000 bpd of synthetic oil from coal and natural gas (see Table 3). South Africa is the region's largest oil consumer (over 73 % of the region's total), and is the second largest oil consumer in Africa behind Egypt. South Africa also is the continent's largest net oil importer.

Exploration and production
Angola has the potential to more than double its crude oil production in the next few years as recent discoveries come on stream. Since 1996, nearly 30 major oil discoveries -- most all located in deeper waters offshore Cabinda and Angola proper -- have been announced. In December 2001, the Girassol field, located on Block 17 went into production.
Full production of nearly 200,000 bpd from Girassol began in the first quarter of 2002. Dalia, the second big field on Block 17, is expected to be as big a producer as Girassol, with daily output close to 200,000 bpd and initial production anticipated in early 2006.

Production from other recent discoveries are planned to come online in the next few years. BP plans to utilize a floating production, storage and offloading (FPSO) vessel on its Greater Plutonio project on Block 18. First oil from the Greater Plutonio project is likely in late 2005, and it will have a production capacity of 250,000 bpd. ExxonMobil's $ 3 bn Kizomba A is targeted to have a peak production of 250,000 bpd.
First oil is scheduled for late 2004. In August 2002, ExxonMobil commenced construction of the Xikomba deepwater development offshore Angola. An estimated 100 mm barrels of recoverable resources exist in the field, with first oil production scheduled for late 2003.
In January 2000, ChevronTexaco began production on Block 14's Kuito field. ChevronTexaco has made eight discoveries on the block dating back to the 1997. The Benguela, Belize, Tomboco and Lobito fields are expected to come onstream some time in 2005, with output in the first phase pegged at 140,000 bpd in 2005 and then rising to over 200,000 bpd once all the fields are in production.

South Africa's Oribi oil field began production from an FPSO in May 1997, the country's first conventional oil production. The field currently produces a light oil (API 42 degrees) at the rate of 10,000 bpd with 15 mm cfpd of associated gas, which is flared. The Oryx field, which lies 3.7 miles (6 km) from Oribi, began production in May 2000, and currently produces at 12,000 bpd.
PetroSA (formerly Soekor) plans to concentrate its exploration efforts on South Africa's western and southern coasts. Several discoveries have been made within the Bredasdorp Basin on Block 9. Oribi and Oryx are located on Block 9. Another significant find, Sable, has been made on the block. PetroSA, and its Sable field partner Pioneer Natural Resources (Pioneer) announced plans for the development of the Sable field in June 2001. The field will be developed with six subsea wells tied back to a FPSO with a capacity to process 60,000 bpd of oil, re-inject 80 mm cfpd of natural gas, and recover natural gas liquids.

Production of 40,000 bpd is expected to begin in the first quarter of 2003. PetroSA and Pioneer announced the results of their Boomslang discovery in February 2001. The find, located on the southern portion of Block 9, tested at a combined rate of 3,120 bpd of oil, 26 mm cfpd of natural gas, and 300 bpd of condensate.
In May 2000, Namibia renewed a stalled agreement granting Russian companies the right to explore for oil and natural gas along Namibia's northern coastline. In November 2000, Namibia formally granted an exploration license to the Russian parastatal, V/O Zarubezchgeologia. Namibia's government also awarded an oil and gas exploration license in June 2000 to a consortium led by US-based Vanco International (Vanco), granting the consortium the rights to Block 1711 offshore of northern Namibia. Vanco has identified two prospects, Kunene and Hartmann, on Block 1711 and the company plans to obtain seismic data by the end of 2002.

In April of 2002, Canada's Antrim Energy and the Tanzanian Petroleum Development Corporation (TPDC) reached an agreement to lift force-majeure on their Pemba-Zanzibar production-sharing contract (PSC). Antrim, which holds a 100 % interest in the concession, said the PSC was granted in 1997 for a four-year term, but that a mutually agreed force-majeure was declared in 1998 when Antrim was denied access to the islands of Zanzibar and Pemba. TPDC and the government of Tanzania concluded its second offshore licensing round in August 2002, putting 11 deepwater blocks and one shallow-water block up for bid.
Tanzania expects to begin talks with Shell before the end of 2002 on the terms of the offshore exploration licence awarded in September 2002. Shell was awarded rights to offshore blocks 9-12, located on the northern edge of the east coast.

In July 2001, Vanco contracted for a seismic survey of its Majunga Offshore Profond Block offshore Madagascar. In March 2002, Vanco signed a PSC for this block, the first awarded in the Majunga Basin since 1997. The block covers 3.57 mm acres. US-based Xpronet announced that it has signed two PSCs with Madagascar's Office of National Mines and Strategic Industries in December 2000.
The PSCs grant the company petroleum exploration and production rights for the Mavony and Rivomena blocks, offshore the west coast of Madagascar. The blocks were originally awarded as exploration blocks in December 1998. Xpronet holds 100 % of the operator's interest in the PSCs.
In 2001, ChevronTexaco's Misato explorationwell made a marginal oil discovery on DRC's continental shelf. This was the first wildcat drilled in DRC since October 1998. It was completed and brought into production in March 2001.

Onshore in DRC, Perenco successfully drilled a development well in the Kinkasi field during October 2001. It was completed, testing 1,800 bpd before stabilizing at 600 bpd. The well came online in November 2001. Perenco also bought Shell's interests in five onshore blocks in DRC. Perenco was already the operator of the blocks after it bought TotalFinaElf's stakes in 2000.
Calgary-based Heritage Oil says it will be drilling exploratory oil wells in former rebel-held eastern DRC. Heritage began drilling Block 3 in Uganda in August 2001. The company is in talks with DRC over terms of a PSC in the area contiguous to Block 3.

Refining
Southern Africa's petroleum refining is concentrated in South Africa. South Africa's four refineries have the capacity to process 468,547 bpd of crude. Other Southern African refineries are in Angola (Luanda, 39,000 bpd); DRC (Muanda, 15,000 bpd); Madagascar (Toamasina, 15,000 bpd); Tanzania (Dar es Salaam, 14,900 bpd) and Zambia (Ndola, 23,750 bpd). In September 2002, Sasol announced that capacity expansion of its Natref oil refinery was complete.
Angola's state oil company, Sonangol, has announced plans for the construction of Angola's second refinery. The facility, with a potential refining capacity of 200,000 bpd, is to be built near the coastal city of Lobito. The $ 3.6-bn refinery is expected to begin operations in 2006.

In October 2002, Sonangol signed a deal with Dresdner Kleinwort Wasserstein to advise on the financing of the Lobito refinery. Diesel and gasoline produced in the refinery will meet technical and environmental specifications required in targeted markets such as the United States, Western Europe and South Africa.
TotalFinaElf, operator of the Luanda refinery, plans to raise capacity to 60,000 bpd by 2004. Two processing units will be enlarged and athird scrapped to boost efficiency. The refinery needs to adapt by 2005 to product specifications set by SADC. These include phasing out lead and increasing the octane content in gasoline. The refinery produces almost all of Angola's domestic requirements of gasoline, kerosene and jet fuel.

TotalFinaElf acquired the refining and marketing assets of Agip in Zambia in April 2002 as part of consolidating its position in Africa. Through the transaction, TotalFinaElf has acquired a 50 % interest in Zambia's Indeni refinery and will provide technical support for the refinery.
The Zambian government will retain control of the remaining half. The marketing assets covered by the agreement consist of 20 service stations, a motor fuel depot, and an interest in a lubricant plant. Citing the relative low cost of imported refined petroleum products in the region, the World Bank has recommended that the Zambia National Oil Company (ZNOC) be dissolved and that the Indeni refinery be permanently shut down.

Consumption
Petroleum consumption in Southern Africa averaged 655,570 bpd in 2000. The vast majority of petroleum consumed in the region is imported; Angola and DRC are the only net exporters of petroleum. The transportation sector consumes approximately 50 %, followed by the industrial sector, which accounts for approximately 15 %. Kerosene is extensively used in rural areas for lighting and, in the urban areas, for cooking and lighting as well. LPG is also used for cooking, particularly in Angola.
Several countries in the region have recently experienced periodic, sometimes severe, petroleum shortages. In September 2002, Zimbabwe and Libya signed an agreement for Libya to supply $ 360-mm worth of oil to the fuel-starved country. In August 2001, Zimbabwe secured a similar deal with Libya. Fuel shortages first began in December 1999 when the Zimbabwean government was unable to meet payments for supplies from foreign oil companies.
Companies in Zimbabwe's oil industry have urged the government to dissolve the National Oil Company of Zimbabwe (Noczim). Internal strife has blocked petroleum shipments and created massive shortages in inland Madagascar, especially in the capital, Antananarivo. Several fires at Zambia's Indeni refinery helped to create petroleum shortages in the country.

Oil integration
The 1,069-mile (1,710 km) Tanzania-Zambia Tanzama Pipeline transports crude from the oil depot at Dar es Salaam, Tanzania to Zambia's Indeni refinery in Ndola. The pipeline, jointly owned by the governments of Zambia (67 %) and Tanzania (33 %), has a capacity of 22,000 bpd (1.1 mm tpy). In April 2002, Zambian President Levy Mwanawasa stated that Tanzania and Zambia are considering privatising the Tanzama Pipeline. He said a technical committee was carrying out a feasibility study on the privatisation.
The Mozambique-Zimbabwe Petrozim Petroleum Products Pipeline runs from the Mozambican port city of Beira to Feruka, Zimbabwe and from there to Msasa, which is located near the capital city of Harare. Noczim imports 80 % of Zimbabwe's petroleum through the pipeline. Petrozim is a joint-venture between Noczim and the South African-based Lonhro. Zimbabwe's Noczim is planning to construct an additional oil-product pipeline from Beira to Msasa. The 500-mile (800 km) pipeline would help to meet Zimbabwe's growing oil demand.

Natural gas
There are significant reserves of natural gas in Southern Africa. Field discoveries have been confirmed and reserves have been proven in Angola (1.6 tcf); DRC (35 bn cf); Madagascar (70 bn cf); Mozambique (4.5 tcf); Namibia (2.2 tcf); South Africa (780 bn cf) and Tanzania (800 bn cf) (see Table 4). Southern Africa contains approximately 2.5 % of Africa's natural gas reserves. Although natural gas is still in early stages of use in the region, several projects for the expansion of its use are under way.
Angola is developing projects to utilize associated natural gas, which is currently flared or re-injected (approximately 83 %). ChevronTexaco and a consortium of oil companies, including ExxonMobil, BP, TotalFinaElf and Norsk Hydro, are planning to gather associated natural gas from deepwater fields and develop shallow water fields in the Congo Basin as part of the Angola LNG project.
ChevronTexaco, the operator, will hold a 32 % stake, while TotalFinaElf, Norsk Hydro, ExxonMobil, and BP will each hold a 12 % interest. Angola's state oil firm, Sonangol will retain the remaining 20 %. In March 2002, participation agreements between the oil companies and Sonangol were signed. The project would utilize natural gas reserves located offshore Angola, south of the Congo River.

Associated gas from the huge deepwater projects in Blocks 15, 17 and 18 including Girassol, Kizomba and Greater Plutonio will be piped to a central gas compression complex located over the Atum field in Block 2. The gas will then be pumped from the complex to Luanda where the consortium will construct an LNG plant.
The Angola LNG project is expected to come onstream in 2007. The LNG plant is expected to consist of a single train with capacity of producing 4 mm tpy of LNG. The plant design will include the potential to add a second 4 mm-ton train. ChevronTexaco is researching methods of laying a pipeline across the Congo River to utilize gas offshore Cabinda. Large associated and non-associated gas reserves are found in Cabinda, and if the pipeline is constructed the gas can be utilized by the LNG project.
Angola is exploring further uses for the gas, including power generation and a gas-to-liquid fuels project. Tanzania plans to develop two offshore natural gas fields to provide fuel for power generation. One project plans to exploit natural gas in the country's largest known field on Songo Songo Island, located in the Indian Ocean southeast of the capital Dar-es-Salaam.

Natural gas from the Songo-Songo field will be transported to Dar es Salaam by a 130-mile (217 km) pipeline. Upon completion of the project, five liquid fuel turbines at the 112-MW Ubungopower plant will be converted to natural gas, and the power generated by the plant will be fed directly into the national grid.
US-based AES, the project's developer, received $ 250-mm credit financing package from the International Development Association and the European Investment Bank. The World Bank also has approved $ 183 mm in financing for the Songo Songo project. Plans call for other industrial users to utilize Songo-Songo gas, and the pipeline could be extended to the Kenyan port city of Mombassa to supply gas for industrial usage and power generation.

A second Tanzanian project would utilize natural gas reserves from the Mnazi Bay field. The gas will be piped to the southern Tanzanian town of Mtwara for use in power generation. The proposed 15-MW generating plant could later be expanded to 50 MW. In July 2001, the World Bank announced it has shelved its plan to fund the Mnazi Bay gas project until the government completes energy sector reforms.
South Africa's FA field currently produces at a rate of 194 mm cfpd of natural gas and 9,500 bpd of condensate. An offshore natural gas discovery was made in March 2000 close to South Africa's border with Namibia. Located in Block 2, off South Africa's western coast, the find is reportedly part of the same reservoir, which extends to Namibia's Kudu prospect.
Denver-based Forest Oil reported that the find, AK-1, flowed at a rate of 52.8 mm cfpd of natural gas and 342 bpd of condensate. Forest's initial estimates placed recoverable reserves at 200 bn cf of natural gas. Appraisal drilling conducted in 2000-2001 caused Forest to revise its estimate of total reserves for the discovery, renamed the Ibhubezi field, to 2.5 tcf.

South Africa's synthetic fuels and chemicals producer Sasol will soon begin utilizing natural gas reserves in neighbouring Mozambique. Sasol estimates that the switch to natural gas will reduce investment expenditures in its coal mining operations and the high costs of compliance with environmental regulations associated with coal.
The project is expected to start delivering natural gas to South Africa during the first half of 2004. The project consists of several major components including the development of the Pande and Temane gas fields in Mozambique. The 536-mile (865 km) transport pipeline will run from the Mozambican fields to Secunda. Sasol will convert its existing pipeline-gas network to natural gas, and supply natural gas to industries in South Africa, including its own facilities. Sasol will switch its Sasolburg plants from coal to gas feedstock and utilize natural gas at Secunda to supplement coal-based growth there.
The pipeline will be owned by a joint venture between Sasol, and the governments of Mozambique and South Africa. The parties have made provision for the future inclusion of Black empowerment shareholders as well as privatisation initiatives. Sasol has signed Memoranda of Understanding with two empowerment groups for local gas distribution companies in Mpumalanga and KwaZulu-Natal. On May 3, 2002, President Chissano of Mozambique and President Mbeki of South Africa officially launched the project at a ceremony held at the Temane gas field in the Inhambane Province of Mozambique.

In June 2002, Malaysia's Petronas, announced that it had signed an exploration and production deal for the offshore Zambezi Delta Block, together with Empresa Nacional de Hidrocarbonetos de Mozambique (ENH), Mozambique's national oil company. Under terms of the deal, Petronas will hold an 85 % stake in the block and ENH will own the remaining 15 %.
Petronas officials stated that the block has proven hydrocarbon reserves and several onshore gas field discoveries were made recently in that area. In the event of commercial discovery, ENH will have the option to increase its stake to 20 % during the development and production phase.

In September 2002, Shell announced that it was pulling out of Namibia's offshore Kudu gas project. The decision was made after the failure to find sufficient reserves to build an offshore LNG export facility. Kudu's reserves are estimated at 1.3 tcf, well short of the 5 tcf needed for the proposed $ 2.5-bn floating LNG facility.
ChevronTexaco and Energy Africa, the remaining partners, say there are sufficient reserves to develop gas-fired power schemes utilizing Kudu gas. The Cape Power Project would include a 1,200-2,000 MW combined-cycle, gas-turbine power station near Cape Town. The power plant would serve the metropolitan area and industrial plants at Saldanha. The plan also would include a 400-MW power plant at Oranjemund, Namibia that will supply Namibia and western South Africa with electricity.

Coal
Coal resources are abundant in Southern Africa, especially in South Africa, where recoverable reserves are estimated at 54.6 bn short tons, representing 6 % of world recoverable coal reserves. The total recoverable coal reserves in the region amount to 60.7 bn short tons. In 2000, regional coal production was 253.6 mm short tons, of which South Africa produced 247.2 mm short tons (see Table 5).
The primary use of coal in the region is in the generation of electricity. Coal generates a significant portion of the electricity in Botswana, South Africa and Zimbabwe. South Africa also uses coal to produce synthetic fuels and chemicals, while Zambia uses coal in the mining transformation process. South Africa consumed the vast majority (96 %) of the region's coal in 2000. Total coal consumption in Southern Africa was 182.8 mm short tons in 2000.

South Africa's Industrial Development Corporation will study the possibility of re-developing a coal project in Mozambique. The Moatize mine in north-western Mozambique was initially operated by the South African-steel producer, Iscor, in the 1970's. High production costs and lack of infrastructure led to Iscor's withdrawal in 1977. The re-development project would include the development and improvement of mine facilities and the establishment of a rail line to supply coal to Zimbabwe, Malawi, Zambia and DRC.
Port facilities at Beira would also be upgraded. The Moatize mine would have the capacity to produce 3.3 mm short tons of coking coal annually, as well as quantities of steam coal. A feasibility study for the project, including analysis of establishing a 1,000-MW power plant to utilize steam coal reserves, is expected to commence before the end of 2002.

Coal production from Botswana's Morupole Collieries (coal mines) could increase in the near term. The production expansion will hinge on the Botswana Power Corporation's (BPC), decision to build two new coal-fired plants with a combined capacity of 240 MW. The Morupole Collieries are owned by Debswana, a joint venture between De Beers and the government of Botswana.
Malawi's Mwabvi coal mine plans to triple its current output by 2003. The mine, which currently produces 0.06 mm short tons annually, hopes to raise output to at least 0.20 mm short tons by 2003. Malawi currently consumes approximately 0.07 mm short tons of coal annually.
Zimbabwe's petroleum shortages also have affected the coal industry. It was reported, in April 2001, that the National Railways of Zimbabwe (NRZ) which transports the majority of the coal produced at Zimbabwe's Wankie Colliery, had been forced to ground some of its trains because of diesel fuel shortages. Industrial facilities, including Zimbabwe's Hwange Power Station, were forced to scale back production.

Electricity
Southern Africa's total installed electric generating capacity was 54,183 MW at the beginning of 2000, the majority of which is thermal (see Table 6). Total electricity generation for the region in 2000 was 229 bn kWh. Net hydroelectric generation was 28.76 bn kWh, with Zambia (7.78 bn kWh), Mozambique (6.77 bn kWh) and the DRC (5.30 bn kWh) being the largest generators. In 2000, total regional electricity consumption was 213.29 bn kWh, led by South Africa's 181.52 bn kWh (85.1 %). Zimbabwe (10.48 bn kWh, 4.9 %), Zambia (5.8 bn kWh, 2.7 %) and the DRC (4.58 bn kWh, 2.2 %) were the next largest electricity consumers.
Created in 1995, the South African Power Pool (SAPP) aims to link SADC member states into a single electricity grid. The national utilities currently participating in the SAPP are Angola's Empresa Nacional de Electricidade (ENE), the Botswana Power Corporation (BPC), the DRC's SNEL, the Lesotho Electricity Corporation (LEC), Malawi's Electricity Supply Commission (Escom), Mozambique's Electricidade de Mozambique (EDM), Namibia's NamPower, South Africa's Eskom, the Swaziland Electricity Board (SEB), Tanzania Electric Supply Company (Tanesco), Zambia's ZESCO, and Zimbabwe's ZESA. SAPP's coordination centre is located in Harare, Zimbabwe.

The Inga hydroelectric facility in the DRC supplies power to country and the neighbouring Republic of Congo along a 220 kilovolt (KV) connection. The interconnection supplies nearly one-third of the electricity consumed in Congo.
Power from Inga is also transmitted to the Zambian grid along a 500-KV DC line from Inga to Kolwezi in southern DRC, and a 220-KV line from Kolwezi to Kitwe in northern Zambia. Mozambique's Cahora Bassa hydroelectric facility, with a nominal capacity of 2,000 MW, supplies electricity domestically, to Zimbabwe and South Africa.
Cahora Bassa is operated by Hidroelectrica de Cahora Bassa (HCB), a joint-venture between Portugal and EDM. In October 2002, HCB cut-off power supplies to South Africa's Eskom over a dispute in pricing. HCB stated that it will resume supplies of power to Eskom when the company agrees to pay at least 3.6 South African cents (about 0.36 US cents) per kWh.
This is the temporary price that was in effect for 2001. At the end of 2001, when no definitive arrangement on pricing was forthcoming, Eskom resumed payments at the old price, two South African cents per kWh. HCB spokesman stated that this price is completely unacceptable, particularly since the dams other major client, Zimbabwe's ZESA, is paying the equivalent of 15 South African cents per kWh.

The Mozambican government is also seeking investorsfor a second hydroelectric facility on the Zambezi River. The $ 1.3- bn Mepanda N'cua dam is be to built south of the existing Cahora Bassa dam. The new facility will have a capacity of 2,400 MW. The government expects construction to begin in 2005, and generation to begin in 2010. The Mepanda dam will also help to reduce the impact of floods in the Zambezi valley.
Paris-based Alstom has been selected by ZESCO to rehabilitate the Victoria Falls power station. The facility consists of three stations, Station A (8 MW), Station B (60 MW) and Station C (40 MW). The plant is situated on the Zambezi river, near Livingstone and within the UNESCO World Heritage site. Alstom will provide both equipment and services for the turnkey rehabilitation of all three stations and the associated high-voltage switchyard.
Botswana plans to provide electricity to all of its citizens by 2016. Currently, only 22 % of Botswana's population has access to electricity. Botswana is continuing talks with Eskom and Nampower concerning the importation of additional electricity into the country. BPC plans to spend $ 700 mm to extend the company's transmission and distribution systems.

Renewable energy/environment
The Compagnie Thermique de Belle Vue (CTBV), a joint-venture composed of Harel Freres (51 %) of Mauritius, France's Cidec (27 %), the Sugar Investment Trust of Mauritius (14 %) and the State Investment Fund (8 %), built a 70-MW IPP facility north of the Mauritian capital of Port Louis. The CTBV plant utilizes bagasse (biomass refuse from the processing of sugar cane) as its primary fuel.
Representatives from Uganda and Swaziland took fact-finding tours of the CTBV plant; Swaziland currently produces about 500,000 tpy of sugar and is heavily dependent upon South Africa for its energy needs. In November 2001, a 20-MW steam-turbine/generator for a sugar mill near Chirezdi, Zimbabwe was commissioned. The facility, owned by Hippo Valley Estates, will use steam generated from burning bagasse to generate the mill's electrical power. The exhaust steam will be used in the sugar refining process.

Solar energy is being viewed by several countries in the region as a prime tool to speed up rural electrification programs, which have been slowed by the high costs of grid extension services. Zambia, Namibia and South Africa are developing programs to utilize solar energy for off-grid (rural) electrification.
Zambia's government has taken steps to encourage investment in solar energy by eliminating all import duties on solar panels and waiving the otherwise obligatory annual license fees for solar energy projects. In April 2002, Namibia's President Nujoma officially opened a solar module factory in northern Namibia. President Nujoma stated the project is important because it provides Namibians with opportunities to promote the usage of solar energy, and the domestically produced photovoltaic dishes will be more affordable to the public.

Mauritius also launched an $ 800,000 solar energy project in February 2000; 125 solar lamps and 960 photo-voltaic panels will light up Mauritian streets and government office buildings as part of the government's strategy to promote renewable energy. Southern Africa faces various environmental problems, including pollution of water supplies, deforestation, desertification, pollution associated with oil and gas development, and dramatic decline in biodiversity throughout the region.
In April 2002, BP, the third-largest oil company operating in South Africa, unveiled a lead-free gasoline for older motor vehicles. The new fuel has been specially created for vehicles that were originally designed to use only leaded fuel, specifically pre-1986 models and those without catalytic converters. BP's decision to launch a lead-free gasoline for older model cars comes four years ahead of a government imposed deadline that will see the use of lead in fuel outlawed in South Africa.

Table 1. Economic and demographic indicators
Country Gross Domestic Product (GDP), 2001E (billionsof dollars) Real GDP growth rate, 2001 Estimate Real GDP growth rate, 2002 Projection per capita GDP, 2001E Population 2001E (millions)
Angola $ 8.3 3.4 % 11.2 % $ 610 10.4
Botswana $ 5.1 8.9 % 4.2 % $ 3,057 1.6
Comoros $ 0.2 1.5 % 3.1 % $ 285 0.6
Democratic Republic of Congo $ 7.0 -4.3 % 2.7 % $ 134 53.6
Lesotho $ 0.8 3.2 % 2.9 % $ 386 2.2
Madagascar $ 4.6 6.5 % 3.0 % $ 283 16.0
Malawi $ 1.5 3.0 % 5.3 % $ 133 10.5
Mauritius $ 4.5 6.3 % 4.7 % $ 3,792 1.2
Mozambique $ 2.4 10.5 % 9.5 % $ 132 19.4
Namibia $ 2.9 2.7 % 4.0 % $ 1,538 1.8
Seychelles $ 0.6 2.8 % 3.3 % $ 8,050 0.1
South Africa $ 113.3 2.2 % 2.0 % $ 2,492 43.6
Swaziland $ 1.2 2.0 % 2.5 % $ 1,117 1.1
Tanzania $ 8.9 5.1 % 5.7 % $ 247 36.2
Zambia $ 3.1 5.2 % 4.3 % $ 301 9.8
Zimbabwe $ 9.4 -7.9 % -15.0 % $ 761 114
Regional total/average $ 173.8 2.2 % 2.1 % $ 792 219.5

Source: DRI/WEFA; Central Intelligence Agency World Factbook 2001; International Monetary Fund; World Bank

Table 2. Total energy and carbon dioxide emissions, 2000
Country Total commercial energy consumption, (quadrillion Btu) Total commercial energy production, (quadrillion Btu) Net energy exports, (quadrillion Btu) Carbon dioxide emissions (mm tons of carbon)
Angola 0.090 1.621 1.531 3.60
Botswana 0.053 0.025 -0.028 0.95
Comoros 0.001 0.000 -0.001 0.02
Democratic Republic of Congo 0.10 40.11 10.00 81.10
Lesotho 0.004 0.000 -0.004 0.05
Madagascar 0.025 0.005 -0.019 0.37
Malawi 0.020 0.010 -0.011 0.24
Mauritius 0.036 0.001 -0.035 0.67
Mozambique 0.031 0.073 0.04 20.36
Namibia 0.025 0.000 -0.025 0.32
Seychelles 0.00 70.000 -0.00 70.14
South Africa 4.64 37.21 32.570 105.85
Swaziland 0.022 0.009 -0.013 0.32
Tanzania 0.05 80.024 -0.034 0.68
Zambia 0.09 50.086 -0.010 0.59
Zimbabwe 0.25 20.144 -0.10 83.97
Regional total 5.46 59.32 13.856 119.22

Source: Energy Information Administration

Table 3. Petroleum overview
Country Petroleum production, 2002 (Jan.-June) (thousand bpd) Petroleum consumption, 2001 (thousand bpd) Petroleum net exports, 2001 (thousand bpd) Crude oil reserves, 1/1/2002 (mm barrels) Crude oil refining capacity, 1/1/2002 (thousand bpd)
Angola 899.8 30.77 11.7 5,412.0 39.0
Botswana 0.0 9.2 -9.2 0.0 0.0
Comoros 0.00.6 -0.6 0.0 0.0
Democratic Republic of Congo 23.2 21.6 2.4 187.0 15.0
Lesotho 0.0 1.2 -1.2 0.0 0.0
Madagascar 0.0 9.1 -9.1 0.0 15.0
Malawi 0.0 5.0 -5.0 0.0 0.0
Mauritius 0.0 16.1 -16.1 0.0 0.0
Mozambique 0.0 8.2 -8.2 0.0 0.0
Namibia 0.0 7.9 -7.9 0.0 0.0
Seychelles 0.0 3.5 -3.5 0.0 0.0
South Africa 202.2 492.7 -292.4 15.74 68.5
Swaziland 0.0 3.5 -3.5 0.0 0.0
Tanzania 0.01 6.2 -16.2 0.01 4.9
Zambia 0.01 2.2 -12.2 0.02 3.8
Zimbabwe 0.03 3.7 -33.7 0.0 0.0
Regional total/average 1,125.16 71.4 295.3 5,614.75 76.2

Source: Energy Information Administration, Oil & Gas Journal

Table 4. Natural gas overview (bn cf)
Country Production, 2000 Consumption, 2000 Reserves, 1/1/2002

Angola 20.48 19.78 1,620
Botswana 0.00 0.00 0
Comoros 0.00 0.00 0
Democratic Republic of Congo 0.00 0.00 35
Lesotho 0.00 0.00 0
Madagascar 0.00 0.00 70
Malawi 0.00 0.00 0
Mauritius 0.00 0.00 0
Mozambique 2.12 2.12 4,500
Namibia 0.00 0.00 2,200
Seychelles 0.00 0.00 0
South Africa 49.44 49.44 780
Swaziland 0.00 0.00 0
Tanzania 0.00 0.00 800
Zambia 0.00 0.00 0
Zimbabwe 0.00 0.00 0
Regional total 72.04 71.34 10,005

Source: Energy Information Administration; Oil and Gas Journal

Table 5. Coal overview (mm short tons)
Country Production, 2000 Consumption, 2000 Reserves
Angola 0.00 0.00 0.00
Botswana 1.06 1.07 4,739.94
Comoros 0.00 0.00 0.00
Democratic Republic of Congo 0.11 0.28 97.00
Lesotho 0.00 0.00 0.00
Madagascar 0.00 0.02 0.00
Malawi 0.06 0.07 2.20
Mauritius 0.00 0.07 0.00
Mozambique 0.02 0.00 233.69
Namibia 0.00 0.01 0.00
Seychelles 0.00 0.00 0.00
South Africa 326.08 176.30 54,586.46
Swaziland 0.32 0.32 229.28
Tanzania 0.01 0.01 220.46
Zambia 0.21 0.20 11.02
Zimbabwe 4.63 4.46 553.36
Regional total 332.49 182.80 60,717.51

Source: Energy Information Administration

Table 6. Electricity overview, bn kWh except where noted
Country Consumption, 2000 Generation, 2000 Installed Capacity, 1/1/2000 (GW) Exports, 2000 Imports, 2000
Angola 1.11 1.12 0.58 60.00 0.00
Botswana 1.45 0.50 0.21 70.00 0.99
Comoros 0.02 0.02 0.00 50.00 0.00
Democratic Republic of Congo 4.58 5.40 2.47 30.50 0.06
Lesotho 0.10 0.00 0.00 0.00 0.10
Madagascar 0.76 0.82 0.28 50.00 0.00
Malawi 0.77 0.83 0.30 80.00 0.00
Mauritius 1.20 1.29 0.36 50.00 0.00
Mozambique 0.93 7.02 2.38 85.70 0.10
Namibia 0.89 0.03 0.00 0.00 0.86
Seychelles 0.15 0.16 0.028 0.00 0.00
South Africa 181.52 194.38 43.110 4.55 5.29
Swaziland 0.90 0.36 0.131 0.00 0.56
Tanzania 2.62 2.77 0.620 0.00 0.05
Zambia 5.84 7.82 1.786 1.54 0.10
Zimbabwe 10.48 6.43 1.881 0.00 4.50
Regional total 213.29 229.00 54.183 12.28 12.61

Source: Energy Information Administration; National Electricity Regulator (South Africa) Electricity Supply Statistics: 1999