Singapore firm taps into North African solar power sector

Singapore-based engineering firm NiveSal has supplied machinery to an Algerian client to manufacture structures used for mounting solar panels at large-scale solar farms. Managing Director Saikat Chowdhury has tapped into the growing demand for this equipment in Africa as local content requirements for solar projects begin to be mandated.

While in many African countries it is not yet feasible to produce the electrical components locally, Chowdhury believes there is a significant opportunity in the manufacturing of mounting of solar panels structures. Algeria, for example, benefits from a strong steel industry and several skilled engineering firms that can produce these basic structures using NiveSal’s machinery. Rather than supplying directly to large solar projects, NiveSal provides equipment to subcontractors that bid to supply components for large-scale projects. The machines, manufactured in Vietnam, were originally designed for producing pre-engineered building components but have been upgraded for solar applications.

Solar power projects are mushrooming across North Africa. Algeria alone plans to add 3GW of solar capacity over the next two years. This opens opportunities for Singapore-based SMEs like NiveSal, which has already secured several orders. It specialises in turnkey engineering solutions for small- and medium-scale industrial projects in developing countries, with a focus on the food, consumer goods, and building materials sectors. The company’s services include project assessment, equipment provision, installation, commissioning, and staff training.

Despite Africa’s wealth of natural resources, the continent currently accounts for less than 2% of global manufacturing output. In an interview to the NTU-SBF Centre for African Studies earlier, Chowdhury said that many African entrepreneurs remain hesitant to venture into manufacturing, often perceiving it as more complex and costly than necessary. However, he has observed growing momentum in Africa toward the manufacturing of infrastructure-related products, such as steel bars and galvanised steel. At last year’s Africa Singapore Business Forum (ASBF), NiveSal signed an agreement with Ghana’s SKY 40-40 to establish a polymer-based building materials manufacturing venture in the port city of Takoradi. The firm foresees expansion of SME manufacturing in Africa across sectors and it is gearing up its capabilities to handle that demand. 

 

References

‘Unlocking Africa’s potential through enhancing the continent’s industrialisation sector’, AUDA-NEPAD, 02 June 2023

‘Solar contracts shift Algeria towards a more renewable future’, African Energy, 07 April 2024