Energy, utilities and resources (including Chemicals)

Working with every segment of the energy, utilities and resources industry in Africa, we tailor our services and provide business solutions to meet your specific needs.

Overview

Globally companies are exploring the emerging markets with opportunities in energy, utilities and resources. This shifts focus to Africa with its own challenges, including resource nationalisation, a shortage of skilled labour, generally rising costs, weak infrastructure and perceived corruption.

Despite these challenges there are enormous opportunities and potential for companies. We help organisations explore these opportunities, navigate risk and deal with disruptive business challenges. With our financial and operational experience, knowledge of business processes and industry insight, we can help you to develop new strategies, improve operating models, grow revenues and reduce costs to deliver superior value to all stakeholders.

How we can add value

PwC supports strategic initiatives to achieve responsible growth

Building trust and transparency
Energy transition
Digitisation and technology
Fit for Growth

Building trust and transparency

Sustainability (i.e. Environmental, Social and Governance, ESG) risks have remained at the top of identified global risks presented by the World Economic Forum (WEF) for a number of years. The level of interest in value added (or taken away) and social impact will continue to increase. Building trust through better communications may be one approach to tackle this – although it has to be remembered, “you are what you do, not what you say you do”. The energy, utilities and resources industry is limited in its ability to relocate assets when faced with outside stressors. This, coupled with long lifespans of operations, makes understanding and planning for future changes in the physical environment, investor confidence, social license to operate and changes in policy and legislation of the energy, utilities and resources environment vital for any business wanting to ensure its long-term sustainability.

Energy transition

Strategy to net zero

The world is at the midpoint of a massive energy-related transformation. This includes a significant increase in electricity compared to other sources. The climate change agenda, cost pressures, technological breakthroughs, regulatory changes and consumer choice create a complex strategic landscape for all companies. In this decarbonising, distributed and digitised world, companies are searching for ways to sustainable, affordable energy services through new business models, ecosystems, technologies and platforms.

We can assist you in determining and implementing net zero strategies, building new operating models, creating new organisations and new ways of managing to deliver superior customer and investor value.

For more information on energy transition, please contact one of our specialists listed.

Carbon tax

A carbon tax is an environmental tax on energy sources that emit greenhouse gases (GHGs). By taxing the burning of fossil fuels in proportion to their carbon content, the primary purpose of such a tax is to reduce emissions of GHGs and thereby slow global warming. The key design features of the Carbon Tax Act have the intention of targeting intensive users of what is colloquially known as ‘dirty energy’. It is apparent that industries that are closely linked to fossil fuel-based energy will be the most affected – however, the knock-on effect and impact of the implementation of carbon tax will ripple across the entire economy and will not be limited to the intended targets of carbon tax. It may be prudent for companies to assess the implications and impact of carbon tax on their entire supply chain, as there might be a knock-on effect from heavy emitting suppliers that may result in a hike in input costs as a result of carbon tax.

Digitisation and technology

More and more energy, utilities and resources companies are understanding the power of technology and digitisation. The question that remains is: will it transform or trample your business models and competitive advantage? One thing is for certain: companies that genuinely understand technology and leverage it strategically will find it to be a fundamental success factor.

We can help you.

Develop practical technology and data strategies that distinguish between noise and real business value;
Align multiple technology solutions, reduce costs and enhance business value by developing strong capabilities, realistic business cases, and a simplified system architecture; and
Identify cyber vulnerabilities and help protect your business assets.

Fit for Growth

Companies in the energy, utilities and resources industry are being forced to change the way they do business in order to redefine growth and ensure future success in an environment posing many challenges that are impacting their success and relationship with stakeholders.

Our Fit for Growth approach is a proven model for unlocking performance that helps companies manage their cost in a more strategic way, enabling them to cut costs and grow stronger at the same time.