DBG Bio Energy Management Team concludes a fruitful visit to South Africa

DBG Bio Energy Management Team warmly accepted the invitation of Bremer Investments and spent the past 10 days in South Africa. The team had various appointments in Senekal, Randfontein, Caledon, Bredasdorp and the Hermanus area.

South Africa's economy is one of the best performing economies on the African continent, along with those of Nigeria and Egypt. The country is the world’s third largest exporter of agricultural products. The principal commodities are cereals (mainly maize and wheat), sugar cane, fruit, citrus fruits and vegetables, meat and wine.

Unfortunately, there is an alarming downside to the South African economy. In recent years, power shortages have increased and blackouts are on the rise. Due to the shortages in the electricity and carbon fuel markets, even industrial production and mining are compelled to pause for a few hours daily. The reasons for the renewed problems in energy supply are mainly structural, while soaring prices on the international energy market are not alleviating the current situation. 

The war in Ukraine and its impact on international trade flows has caused fertiliser prices to hit record highs. Yet, the rapid increase in prices began long before the war: since the beginning of 2020, prices for nitrogen fertiliser have quadrupled and phosphate and potash prices have more than tripled. The reason is the rapid inflation rates for energy.

 

Another pressing issue South Africa deals with, is climate change. Droughts, heat waves and floods have increased in recent years. According to climate researchers, temperatures in southern Africa as a whole are rising twice as fast as the global average.

 

We, at DBG Bio Energy, want to tackle these challenges together with local stakeholders. After numerous discussions, we have been able to identify the key issues we want to address:

 

  • Export and import opportunities of sustainable agricultural products and techniques;

  • Local energy production and supply for diverse industries;

  • Sustainable upcycling and repurposing of agricultural and aquaculture residues;

  • Production, construction, purchasing and distribution synergies with local stakeholders;

  • Scanning of the South African paper sludge supply chain;

  • Business model and financing feasibility studies for South African DBG projects which have the ability to scale up the operations.

 

The possibility to create jobs, while providing sustainable energy solutions to various sectors of the local and regional economies, is what is at the heart of DBG’s potential development programme in South Africa.

 

Berkay Güres said: "I am pleased to see that DBG Bio Energy can play an important role as a producer and trading partner in the South African energy transition and sustainable agricultural products. To realise this, we need progressive and solid partners with economically and environmentally feasible motives. I would therefore like to thank the Chairman of Acorn Agri & Food, CEO of Bremer Investments, the executive management, and operational teams of Heelbo Farming Partnership, Lesotho Milling Company, Terra Aqua Farms, Overberg Agri, P & B Lime Works, Abagold, Sappi and Michael Barnett or the constructive and informative discussions and their hospitality.”

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