Growth expected for African MRO market

New analysis from Frost & Sullivan (F&S), suggests that the maintenance repair and overhaul (MRO) market in South Africa, Nigeria and Zambia, is set for steady growth as several power generation plants begin expanding their capacities.

The analysis, contained in the report, “The Market for Power Station Maintenance, Repair, and Overhaul (MRO) in Key African Countries”, cautioned however that service providers must understand the key capabilities needed in each country in order to succeed.

F&S predicts that the historic negligence of maintenance functions will boost the Nigerian MRO market, and the addition of new plants to address electricity shortages will drive the South African market. Any MRO growth strategy in Zambia would need to cater to the hydro-power segment.
Africa power plant
"While African power utilities are notorious for supplying inadequate and unreliable electricity to consumers, generation capacities are finally expanding owing to rising energy demand," said Frost & Sullivan Business Unit Leader for the Industrial Unit, Cornelis van der Waal. "The need to maintain these assets will compel power utilities to prioritise station maintenance and partner with station maintenance service providers to build skills and capacity."

The large-scale use of MRO services is held back by a number of factors, namely the lack of critical skills to carry out complex maintenance activities, limited availability of financial resources, and rapidly escalating costs for extensive and regular maintenance services.

Efforts are now being made to ensure that the maintenance of power stations is prioritised and more secure electricity services are extended to power utilities.

"Management at power plants will be interested in training their staff through skills transfers, and MRO companies that factor this into their tenders will make headway in the market," observed Van der Waal, "Competitive pricing and the capacity to deliver quality engineering solutions will also be crucial."

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