Research and Markets: Electricity Crisis Spurs Uptake of Power Rental Equipment across Sub-Saharan Africa

DUBLIN--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/0a6bf3/power_rental_in_ke) has
announced the addition of Frost & Sullivan's new report "Power Rental in Key
African Markets" to their offering.

Developing the continent's energy infrastructure is widely seen as one of the
key growth strategies for Africa. The continent's electricity supply industry is
expected to require a total investment of $563 billion over the next 20 years to
meet the growing demand. Because of limited access to funding and dilapidated
energy infrastructure in many African countries, the use of power rental
equipment is increasingly becoming important. The focus of this research service
is to thoroughly explore and analyse power rental in key African markets. The
study also uncovers the current and future market opportunities that exist in
these key African countries.

Electricity Crisis Spurs Uptake of Power Rental Equipment across Sub-Saharan
Africa

The use of power rental equipment is becoming increasingly important in
Sub-Saharan Africa because it helps alleviate the current electricity crisis
affecting the region. Despite customers' preference for buying gensets rather
than renting them, power rental companies that are able to provide rental
services at a competitive price with robust after-sales support can expect to
gain significant market share. Frost & Sullivan estimates that the power rental
markets in Angola, Botswana, Egypt, Kenya, Nigeria, Mozambique, and South Africa
together earned revenues of $79.3 million in 2007.

"A combination of limited generation capabilities, robust economic growth,
driven by bullish metals, mining and construction sectors and more attractive
payment models will support market expansion," notes the analyst of this
research. "In addition, a strong pipeline of infrastructure development projects
will keep the market bullish over the long term." The power rental market is set
to remain robust despite a lack of a rental culture in many African countries.
The below 100KVA range, which accounted for 46 per cent of the total demand in
2007, is poised to continue as the most important power range. The power rental
market is expected to grow at a compound annual growth rate (CAGR) of 9.5 per
cent by 2014, translating to $164.2 million in revenues. Government or utilities
are the biggest end-user segment, accounting for 64.5 per cent of the total
demand. This trend is anticipated to continue in the foreseeable future as
increased demand for housing, telecoms expansion and the boom in construction
projects in countries such as South Africa and Egypt is set to persist."

Reliable Equipment and Ready Product Availability Critical to Competitive
Success

One of the key reasons why companies have preferred to purchase, rather than
hire gensets in the past has been the high cost of renting generator sets. This
has been compounded by the continuous rise of fuel prices. This will need to be
urgently addressed if market potential is to be maximised. Power rental
companies will need to increase the number of machines available, adopt more
flexible payment terms, develop strong relationships with key customers such as
the public utilities and, more importantly, engage in educating customers about
the potential benefits of power rentals.

"Several public utilities link the quality of equipment with brand awareness,
which they correlate to the experience of the selected rental supplier in
sub-Saharan African countries," says the analyst. "As a result, supplying
reliable equipment is critical to establishing long-term relationships with
these key customers." In addition, ensuring product availability and reduced
lead times will be increasingly important in order to achieve customer
satisfaction. Supplier loyalty is likely to fade if product availability and
reduced lead times is not guaranteed.

Key Topics Covered:

1. Executive Summary

2. South African Power Rental Market

3. Angolan Power Rental Market

4. Mozambican Power Rental Market

5. Kenyan Power Rental Market

6. Nigerian Power Rental Market

7. Egyptian Power Rental Market

8. Botswana Power Rental Market

9. Strategic Conclusion

For more information visit
http://www.researchandmarkets.com/research/0a6bf3/power_rental_in_ke

Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716

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