SteamaCo and Shyft Power Solutions: Transforming Nigeria’s energy landscape

 

By Chido Nwakanma I Monday, Nov. 18, 2024

 

LAGOS, Nigeria – In the wake of a global energy crisis marked by rising costs and dwindling supplies, two pioneering companies in Africa’s energy technology landscape have taken a bold step forward that could redefine the future of energy delivery across the continent.

The recent merger between SteamaCo and Shyft Power Solutions signals a transformative commitment to digitising Africa’s power infrastructure.

SteamaCo, a UK-based leader in energy revenue management, and Shyft Power Solutions, a Nigerian innovator in digital energy solutions, unite years of expertise in advanced metering infrastructure. With a shared vision centred on technology,these two leading energy technology companies have joined forces to fast-track the digitisation of Africa’s power grids, unlocking the potential for reliable, sustainable, and productive energy solutions.

This is more than a business deal—it aligns strategically with the continent’s energy needs. By combining their strengths, the new entity aims to deliver transformative energy solutions and improved energy access across Nigeria and beyond.

At the heart of this merger is a commitment to leveraging cutting-edge technology to promote operational efficiency and enhance accountability within the energy sector. The advanced metering technology introduced by the merged entity—such as Shyft’sFlexView and SteamaCo’s Nimbus AMI—will transform Nigeria’s electricity industry.

It paves the way for real-time monitoring, accurate billing, and enhanced energy management capabilities to increase customer trust, reduce operational losses and improve service delivery.This technology addresses a fundamental need: reliable access to information that places consumers in control of their energy usage and reduces waste. Furthermore, the combined efforts of SteamaCo and Shyft can spur economic growth, create jobs, and mitigate climate change.

Importantly, this merger comes at a time when regulatory changes are opening doors for independent power producers (IPPs) and utilities. These changes provide fresh investment opportunities, particularly in grid intelligence and metering. Moreover, the merger aligns perfectly with the growing demand for distributed energy resources, such as solar home systems and mini-grids, which are essential to addressing the energy access gap.

Additionally, their collaboration is a testament to the importance of diversity in leadership within the tech space. With a predominantly female-led management team, a rarity in the African technology and energy sectors. UgwemEneyo, Co-Founder and CEO of Shyft Power Solutions brings invaluable expertise, leadership, and a deep understanding of the Nigerian energy landscape.

According to data from Africa: The Big Deal database, this merger is a significant step forward for female representation in a field where only 13% of venture capital funding in Africa goes to female-led startups.This alliance challenges the gender disparity prevalent in venture capital across the continent. It signals to prospective investors and innovators that inclusivity is not just about equity—it’s about driving better outcomes in every sector, especially those as vital as energy.

Given on going challenges with Nigeria’s power grid and the failure to realise the eloquent promises of private-sector firms replacing government-owned providers, why does it matter? This technology is particularly beneficial in enhancing efficiency, reducing costs, and promoting sustainability through real-time data collection and analysis.

The merger occurs at a pivotal time when regulatory changes and rising energy costs have increased the demand for reliable power. With approximately half of Nigeria’s population lacking adequate access to electricity and those connected often experiencing daily blackouts, the need for innovative solutions has never been greater.

SteamaCo and Shyft Power Solutions are poised to bridge this gap. They will help utilities leverage data-driven solutions to streamline revenue management, enhance efficiency, and mitigate downtime. Their commitment to enabling smart cities and sustainable communities underscores their vision of fostering economic advancement and environmental resilience.This merger is not just about technology but about people, communities, and sustainable development.

The merger occurs alongside a new funding round led by Equator VC and with participation from Praetura Ventures and KawiSafi Ventures. Collectively, they have decades of experience investing in African and climate-tech ventures. The merger sets the stage for rapid expansion into the grid-connected market and increased customer reach.

The SteamaCo and Shyft merger represents more than just a corporate union—it is a bold step toward a more sustainable, inclusive, and technologically advanced energy future for Nigeria and Africa. This partnership supportsAfrica’s energy reforms by leveraging digital transformation for a brighter tomorrow.

 

Culled from BusinessDay.