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AfrElec COAL AfrElec
Europe eyes South Africa
as coal supplier following
Russia sanctions
SOUTH AFRICA EUROPEAN buyers of coal are beginning to show that several coal cargo carriers are heading
turn to other global suppliers, looking as far as west around the Cape of Good Hope from the
South Africa, in the wake of Russia’s invasion of Richards Bay coal terminal.
Ukraine. Traditionally South Africa ships over Many companies and countries have made
86% of its coal to Asian markets. Last year, of the their own decisions to stop trading with Russian
59mn tonnes of coal dispatched from the Rich- suppliers amid concerns over transport disrup-
ards Bay Coal Terminal, only 4% went to Europe. tions, reliability of supply chains and possible
The trade in energy commodities has started escalation of sanctions. As a result, energy com-
to see disruptions since the introduction of modity prices are surging in Europe and Asia.
the SWIFT restrictions against Russian banks. Last week, coal prices spiked to record highs as
While the energy sector was not specifically the Russia-Ukraine conflict escalated.
targeted, the sanctions have affected exporting “European thermal coal prices have surged to
capabilities from Russia. According to OilPrice, record highs with futures prices above $400 per
the threat of further sanctions has made Russian tonne until Q4,” Wood Mackenzie principal ana-
coal unsellable with many European buyers. lyst Rory Simington said. “Some buyers in Japan
According to Bevan Jones, CEO at African and Europe have already indicated they are look-
Source Markets, coal flows from South Africa, ing to replace Russian supply, and non-Russian
the US and Colombia to Europe have increased thermal coal in Europe is attracting a significant
over the past few weeks as European utilities premium over Russian material.”
have ramped up volumes. Vessel-tracking data
World Bank approves $150mn
to boost electrification rates
in Senegal
SENEGAL THE World Bank approved $150mn from the vulnerable households that will be provided
International Development Association (IDA) with standardized connection kits tailored to
towards helping Senegal increase access to elec- their needs.
tricity services for households, enterprises, and In addition, about 700 Micro, Small and
critical public facilities. Medium-sized Enterprises (MSMEs), 200
At 78.6%, Senegal has one of the highest elec- schools, and 600 health facilities will benefit
trification rates on the continent. But the figure from new or improved electricity services.
belies profound disparities – across urban and “[PADAES] is an important contribution to
rural areas, geographies, and income groups, the ongoing governmental strategy for universal
according to the World Bank. access by 2025 to electricity at an affordable cost
More than 1.5mn people will benefit directly for all Senegalese households, both in rural and
from the Energy Access Scale-Up Project urban areas,” Minister of Petroleum and Energy
(PADAES) through the connection of 200,000 Sophie Gladima said.
households to the grid, including 40,000
Week 11 17•March•2022 www. NEWSBASE .com P9
