CIG upbeat about growth prospects - CNBC Africa

CIG upbeat about growth prospects

Financial

by Trust Matsilele 0

CIG said its fortunate to be in the power sector due to the supply and demand mismatch. PHOTO: Getty Images

The company’s revenue increased by 36 per cent to 1.3 billion rand in 2014 from 969 million rand in 2013.

(READ MORE: AES inclusion drives Consolidated Infrastructure’s profits)

“We are in a very fortunate position in the power and electrification sector with the supply and demand mismatch. We are in a great position compared to a lot of companies at the moment. The need for electricity in South Africa and across the continent remains very strong and robust,” said Raoul Gamsu, the group’s chief executive officer.

[DATA CIL:Consolidated Infrastructure Group] won a plethora of business tenders in sub-Saharan Africa compared to South Africa in the past, but that seems to be changing.

“The market in South Africa has declined in the past year. We had a very strong run up in our business until 2010 and six months after. However, business has been quiet in municipalities from 2012 to 2013. We are seeing activity in municipalities driving growth again and of the 36 per cent growth we have received from municipalities, our order books reveal that most of these are South African,” he added.

The company has also ventured into renewable energy as part of its business mix and hopes to see the sector sustaining itself in the next five to six years.

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Gamsu concedes that growth in renewable energy will be substantial but will remain constant in the next few years.

CIG, a JSE-listed company, has been buoyant in the sector with a broad reach across Africa and the Middle East and is currently operating in 21 African countries.

Supplying heavy building materials to the construction, CIG recently added waste management to the holding company through its stake in Angola Environmental Servicos (AES).

The group strategically targets 50 per cent of revenue to be generated from outside South Africa and its long term vision is to extend its oil and gas interests in Tanzania, Mozambique, Ghana and Nigeria. 

BY: TRUST MATSILELE

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